Purpose vs Profit: How has business changed in our 'new normal'?

For the past 50 years, the primary role of business in society has been to maximise shareholder return, a consequence of Milton Friedman's seminal article in the New York Times in 1970 in which he stated that "any other use of shareholders money was irresponsible".

Given the current state of the world, the pandemic, with climate change, global warming, depletion of our natural resources, over population, catastrophic pollution and growing inequality to name a few, it feels like the idea of business being a force for good, and playing a bigger role in society beyond financial maximisation, is the obvious thing to do.

Unfortunately, many business leaders don’t see it this way.

The world of business is about making money and “purpose” is often seen as getting in the way of making money. It’s perceived to be a “feel good” distraction that takes the eye off the ball, costs money, and erodes the carefully crafted and sought-after profit number. This number is the sole purpose many businesses exist, and it is the most significant factor that business leaders are judged on.

So, when business leaders see the word “purpose”, their immediate assumption is that it is going to cost them money, making their profit number that much more difficult to achieve.

Mike Middleton,  Founder and CEO of Marty McFly - and Andrew Ross, CEO of Chaos Theory - have joined Good Things Guy Brent Lindeque to chat about where business is going in our 'new normal'.

Listen to the podcast below.

Meanwhile, #DriveHope was created from a desperate cry for help in a post on Facebook. When Karen Denny, Divisional Executive for Liberty’s Digital Marketing team, first read it, her heart sank. An elderly woman had anonymously poured her heart out, searching for help after she was sexually assaulted by a relative. The woman’s family and friends couldn’t offer her the support she needed, she had lost her job because of the COVID-19 lockdown, and her Unemployment Insurance Fund payments were still outstanding.

Reading the post was an emotional roller-coaster – the sadness surrounding the woman’s situation, the outrage over her suffering and inability to find help, and finally knowing that the Liberty #DriveHope Squad could somehow assist.

“I remember when I first called her, she couldn’t stop crying. I told her – I promised her – that we were going to help,” says Karen.

The physical distance created by the national lockdown was a challenge, but she and Liberty’s #DriveHopeSquad, a team of internal colleagues – knew that at the very least, they could help the woman get medical attention, both physically and psychologically, and provide her with food to sustain her until she could get back on her feet.

This was just one of the hundreds of random acts of kindness that the squad has undertaken since the campaign began. Good Things Guy Brent Lindeque chats to Karen to find out more about the #DriveHope initiative began. Listen below.