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 not only become prominent, but increasingly polarized. Debates now extend beyond whether purpose can support profitability to whether purpose-driven efforts are strategic, performative, or even unwelcome. In this class, we begin with the assessment that the traditional framing of “profit versus purpose” remains a false dichotomy. In many cases, purpose contributes to brand value, risk mitigation, stakeholder trust, and ultimately profitability. However, success on both fronts requires a disciplined, evidence-based strategic approach. This class aims to equip students with the tools to pursue both goals together.
Although many consumers, employees, and investors continue to prefer companies aligned with their values, others are openly skeptical of (or even hostile to) sustainability, ESG initiatives, and corporate engagement with social issues. These diverging expectations create both opportunities and risks for firms. This course provides tools and frameworks to analyze when and how purpose can create business value, and when it may generate pushback. We begin with a broad business perspective, examining stakeholders and how companies define goals that extend beyond profit maximization. We then turn to the consumer to understand what customers value, how companies can serve those needs while supporting social or environmental good, and how traditional marketing strategies can be adapted or restrained in light of purpose-driven aims. Throughout, we will analyze cases, hear from guest speakers, and draw on academic and industry research as well as recent events. The final deliverable will be a marketing plan that articulates a firm strategy capable of increasing societal benefit 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 - understanding when it is advantageous to do so
- Develop business strategies that align with broader societal goals, ensuring long-term sustainability and value creation for all stakeholders
