A recent report from GoCardless for example, found that 50 per cent of Australian consumers take into account their environmental impact when paying.
Consumers are also looking to engage with companies that share their values, with a study from PWC in 2021 highlighting that 83 per cent think companies should be actively shaping ESG best practices.
On the flip side, younger employees are increasingly looking to work for companies that align with their values and create a positive impact. Value-driven companies are more likely to attract and retain top talent, by offering meaningful work that goes beyond a salary.
Purpose-led companies, organisations where their purpose sits at the core of everything they do, will attract such talent and customers. They are committed to creating long-term value not just for their shareholders, but also for their employees, customers, suppliers, and wider society.
This was the founding belief for WLTH, a business that was built on the premise that finance can be a driver of sustainability and social impact. The company revolves around protecting our oceans and marine life through a number of incentives that benefit our customers and the environment.
However, I know as a business leader, it can be challenging to carve out your own purpose- or your “ikigai”.
Make your actions and results clear
Purpose-led companies must establish an accountability process to ensure well-intended initiatives don’t become a flash in the pan. Defining KPIs that track the impact of your initiatives can help demonstrate genuine action on your part. This can include environmental or social impact, and financial performance. Regularly report on your progress and communicate your impact to stakeholders.
For example, some fintechs like Codat integrate with envirotech platforms to help financial service providers unlock clients’ carbon footprint from accounting data, while other platforms like Pathzero help companies and investors understand their businesses’ carbon emissions.
To amplify the impact of your work, consider partnering with like-minded brands and organisations. However, choose your partners wisely and ensure that they also authentically care about your chosen purpose, and aren’t just appeasing societal and economic pressures.
Falsifying or embellishing ethical initiatives for marketing purposes – “greenwashing,” can have serious legal implications, which the ACCC have cracked down on in recent months. In Australia, greenwashing may constitute a breach of several areas of the Australian Consumer Law (ACL), which prohibits engaging in misleading or deceptive conduct in trade or commerce and making false or misleading representations about goods or services.
On top of this, it’s a sure way to damage your relationship with customers and stakeholders and prevent long-term success.
It’s clear that business leaders have a real opportunity to be a force for good in the world, and while there may be commercial benefits when you lead with purpose, authenticity and accountability should be your north star.
Source: Dynamic Business
