HBR IdeaCast Inside Companies that Get the Purpose-Profit Balance Right
Feb 15, 2022
Ranjay Gulati, a Harvard Business School professor and author of "Deep Purpose," explores the crucial balance between purpose and profit in companies. He reveals how truly purpose-driven organizations like Etsy navigate the complexity of aligning financial success with societal good. Gulati emphasizes the need for authentic purpose beyond corporate slogans and discusses the importance of compassionate communication during tough times. He also highlights how leaders must thoughtfully manage investor expectations to sustain their purpose-driven initiatives.
AI Snips
Chapters
Books
Transcript
Episode notes
Purpose as Wallpaper
- Many companies treat purpose as a superficial checkbox task, not a core value.
- A series of conversations with business leaders and students highlighted the growing importance of purpose.
Deep Purpose
- Go beyond superficial purpose statements and focus on truly living your purpose.
- Purpose should be ambitious, idealistic, stakeholder-focused, and long-term oriented.
Convenient vs. Deep Purpose
- Convenient purpose disguises profit-seeking as virtue, treats social impact as peripheral, or only pursues win-wins.
- Deep purpose integrates social good into the core business model.
