51. Why Purpose Is Essential for Your People and Your Company

Purpose and Profit with Kathy Varol

After 2 years of speaking with some of the most innovative leaders in the ESG space today, this week’s Purpose and Profit is extra special. It’s my very first solocast!

In this episode I take you behind the scenes, sharing part of my journey in creating the global purpose strategy for adidas, a $22 billion company. My experiences shaping how adidas positively impacts people and planet catapulted me on my mission to re-purpose business into a force for good. I also let you in on why purpose is essential for your people and your company, and I share the most common mistake businesses make on the path to purpose.

A couple eye-opening facts:

● The average lifespan of an S&P 500 company has plummeted from 61 years to less than 18 years

● 85% of millennials in the US would switch brands for a good cause

● The highest-ranked companies on social and environmental performance have a 7% higher return on equity compared to the Russel 1000 Index (i.e. the largest companies in the USA based on market capitalization)

Here’s a little of what I cover in this episode:

● The big mistake we made at adidas (even though we were a leader in retail sustainability)

● How to generate the best marketing there is—word of mouth

● How financial maximization damaged the long-term value of companies

You don’t have to do it alone! If you need help transitioning to become a purpose-led company, or innovating new ways to bring your purpose to life, I’d love to help you.

References:

● Sustainability at adidas

● Parley for the Oceans

● Run for the Oceans

● Dow Jones Sustainability World Index

● 2019 Business Roundtable statement on moving away from shareholder primacy

● JUST 100

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