How to Tie ‘Impact Beyond Profit’ into a Business Model

Consumers increasingly expect businesses to do more than simply turn a profit; they want to see them have a positive impact on society and the planet. With a company’s sustainability practices and environmental stewardship becoming factors that determine purchasing decisions, incorporating the concept of “impact beyond profit” into their business models is a key imperative for organizations looking to thrive in the long run.

Here, together with my fellow Forbes contributors we share strategies organizations can adopt to seamlessly integrate social and environmental impact into their core business practices. The practical steps outlined below can help businesses not only continue to grow and succeed financially, but also contribute positively to their broader community and environment.

1. Reward Behaviors That Support Key Virtues

What gets rewarded gets repeated. If, for example, “social  conscience” is a key virtue, reward behaviors that support that ideal.  Remember that you should hire, fire, train and promote in alignment with  the company’s core values. If the “impact beyond profit” imperative is  not codified into the organizational core values, leadership cannot  expect individuals to understand what is required. - Antonio Garrido, My Daily Leadership

2. Don’t Create Offerings Just For Revenue

Building a company that creates impact beyond profit comes from  creating programs and products that solve problems for your ideal  client, rather than creating them out of a need for revenue. - Arash Vossoughi, Voss Coaching Co.

3. Embrace Experimentation

Organizations that embrace experimentation foster more creativity,  empowerment and risk-taking among their workforce to optimize toward  “impact beyond profit.” Employees want to feel enabled and know that  their roles tie closely to the company’s core mission. Promoting a  culture where one can experiment, try new things and learn from those  experiences drives greater impact and enterprise value. - Tiffany Uman, Tiffany Uman Career Strategy Coach Services Inc.

4. Uncover Your Authentic ‘Why’

Organizations may need to begin with some organizational  soul-searching! Exploring and uncovering the authentic “why” that adds  meaning and purpose to a business is an exciting and important endeavor,  but it’s a process that’s not to be taken lightly. Make it inclusive,  engage all the key stakeholders (customers, employees and leaders) and  prepare to revisit the foundational vision and values. - Lori Bartle, Cultivagency

5. Build A Foundation Of Authenticity And Values

To genuinely embed “impact beyond profit,” organizations should align  with core values, pursue positive impact beyond mere optics, engage  stakeholders and uphold transparent reporting. This commitment deepens  trust, bolsters brand loyalty and ensures lasting sustainability. - Jessica Hill Holm, Hill Holm Coaching & Consulting

6. Do More Than Mention ESG On Earnings Calls

Do more than mention environmental, social and governance on your  earnings calls. Choose a part of your community that could benefit from  your company’s and employees’ donations of time and money; encourage  people to donate and give them the time to do it. Track the difference  you’re making and “walk your talk.” - Gregg Ward, MCEC BCC, The Center for Respectful Leadership

7. Set Clear Sustainability Goals

By aligning initiatives with their values, allocating funds and  engaging stakeholders, organizations can set clear sustainability goals  that align with their objectives. Collaborating with like-minded  entities and measuring impact are key steps that demonstrate a  commitment to societal and environmental well-being, ultimately  enhancing reputation and long-term success. - Foluso Gbadamosi, FolusoGbadamosi.com

8. Implement Your Purpose

Doing good is good for business. Purpose engages and inspires  employees, builds brand and customer loyalty, and attracts new business.  Organizations that have successfully implemented their purpose do not  have a purpose—they are their purpose. Purpose must be  institutionalized, operationalized and contextualized to be effective.  Risks and challenges may be substantial, but the rewards are huge. - Edyta Pacuk, MarchFifteen Consulting Inc.

9. Allocate Profits Strategically

Companies that thrived during the Covid-19 pandemic understood  strategic allocation of profits: a percentage put in cash reserve  (12-plus months), a percentage dedicated to capacity building, a  percentage dedicated to value building and a percentage dedicated to  sharing. Sharing includes employee benefits, profit sharing and  charitable endeavors. Agility in business is the greatest impact of  leveraging profits. - Sherre DeMao, BizGrowth Inc

10. Commit To Reporting Your Progress

Committing to reporting your progress on impact through a simple framework, such as IRIS metrics,  is a good starting point. Identify the sustainable development goals  for the business and adopt a tangible framework to implement. Reporting  brings accountability. If you start reporting, it means you start  measuring, and further, it means that you start implementing. This is a  good way to incorporate “impact beyond profit.” - Shruti Parashar, GOALisB

11. Incorporate Meaningful Company Endeavors

The impact can be achieved in many ways that are felt both internally  within the organization and externally with different stakeholders.  Thus, incorporate meaningful company endeavors at every touch point with  staff and other stakeholders that create a forward ripple effect to at  least one other person, team or entity. Building this into the DNA of a  business ensures true, sustainable impact is achieved. - Arthi Rabikrisson, Prerna Advisory

12. Create Meaningful, Value-Aligned Work

There is compelling evidence that a growing number of employees,  especially Gen-Zers and younger Millennials, are deeply concerned with  values alignment. They want to be engaged in meaningful work for  organizations they respect. Since we also know that retaining committed  employees over time offers major cost savings, impact and profit may be  more closely linked than once assumed. - Carol Geffner, CB Vision LLC.

13. Focus On How Community Impact Benefits Teams

Think about how having an impact in the community can also benefit  your team’s sense of purpose and the company’s overall mission. For  example, a toy company can give away free toys while encouraging the  community to make a gift. A marketing company can support small startups  in the area and encourage their established clientele to offer  mentorship or participate in some way. It must always be a win-win. - Michelle Rockwood, Unscripted Sales

14. Pair Growth KPIs With Impact Metrics

Savvy executives are pivoting from pure profit to profit plus impact.  The key? Introducing growth key performance indicators paired with  impact metrics. And the golden move? Co-creating joint ventures and  initiatives with communities and impact stakeholders. It’s not just  about the bottom line anymore; it’s about weaving societal good into the  very fabric of business strategy. - Svetlana Dimovski, PhD, ICF-PCC, NBC-HWC, Dharma Growth, LLC

15. Establish Quantifiable Targets

Establish a set of quantifiable social and environmental targets in  addition to your financial milestones. Embrace a triple bottom line  approach, making people, planet and profit the pillars of your business  decisions. Form collaborations with non-governmental organizations and  government agencies. Cultivate employee participation in your  initiatives to boost morale and attract customers who value corporate  responsibility. - Lital Marom, LITAL MAROM

This article was originally published in @Forbes