Business with Purpose: Integrating Profit and Social Value
In recent years, the question of whether the goal of business should be to benefit its shareholders (i.e., profit) or broader society (i.e., purpose) has become paramount, along with the related question of whether or not it is profitable to pursue purpose. In this class, we begin with the assessment that these are false dichotomies. In many cases, companies who have profit as their primary aim can or should simultaneously pursue social good. However, success on both fronts requires the right strategic approach. This class aims to equip students with the tools to pursue both goals simultaneously.
Increasingly, consumers seek to purchase from, employees desire to work for, and investors prioritize investments in companies that reflect their values. Together, these stakeholders drive demand for businesses that prioritize sustainability, social impact, and ethical practices. This course aims to provide a broad range of tools and frameworks for understanding the concept of business with purpose and exploring the intersection of profit and social value. The course will begin by taking a broad business perspective, discussing various stakeholders and understanding possible business goals in relation to them. We will discuss strategies for identifying and prioritizing specific goals that go beyond profit maximization. Subsequently, we will focus on the consumer to understand the value that consumers derive from companies and how companies can serve their customers while simultaneously supporting social or environmental good. We will examine how traditional marketing strategies can be incorporated into and/or modified in light of purpose-driven business aims. This course will draw upon cases, guest speakers, academic and industry research, and recent articles and events. The final course deliverable will be a marketing plan focused on a firm strategy that can increase the societal benefit of the firm’s actions while also creating shareholder value.
Course Objectives:
- Critically evaluate the business case for doing well by doing good, and the potential benefits and risks for businesses, shareholders, and other stakeholders
- Learn how to select priorities and focus areas when developing purpose-driven strategies in the context of profit-seeking firms
- Understand consumer preferences for purpose-driven brands, and how to leverage these preferences to create value
- Learn principles of behavior change and how businesses can help their customers directly
- Effectively brand and communicate a company’s values and the value that they create
- Develop business strategies that align with broader societal goals, ensuring long-term sustainability and value creation for all stakeholders