The Billion-Dollar Business of Doing Good

Welcome to Legacy Beyond Profits, where we explore what it really means to build a business that leaves a mark for the right reasons.

We focus on good purpose, a concept that goes beyond mission statements and marketing. It’s about embedding values into the DNA of your company and building for long-term impact, not just quarterly results.

And we draw inspiration from Charles Koch's Good Profit, a book that challenges conventional thinking about capitalism. Koch makes a powerful distinction between "good profit"—earned by creating real value for others—and "bad profit," which comes at the expense of integrity, customers, or society.

His message is clear: the most successful and sustainable companies are those rooted in purpose, driven by principles, and focused on mutual benefit.

In every issue, we explore how that same mindset is showing up in the world of ethical leadership, stakeholder capitalism, and purpose-driven entrepreneurship. From frameworks to help define your company's "why," to real-world examples of leaders doing good on purpose—this is your guide to building with intention.

🏛️ How Legacy-Minded Companies Are Winning the Long Game

When BP announced its "fundamental reset" to ramp up oil and gas production while cutting back renewables, Wall Street's reaction was swift. But the bigger story isn't in the immediate market response. It's in the long-term performance patterns that purpose-driven businesses are establishing across sectors.

High-purpose companies achieved valuation multiples four times higher than their peers during the COVID-19 crisis. This wasn't an anomaly. It was confirmation of what forward-thinking leaders have long understood: purpose doesn't just create warm feelings. It creates cold, hard cash.

🔱 Standing Firm in Shifting Winds

"Divisive forces will come and go," observes Nandika Madgavkar, head of strategic engagement at Chief Executives for Corporate Purpose (CECP). "If you look at the iconic businesses that have survived over the last 150 years, they survived because they lived their purpose and did not divert from their values."

The longevity of Fortune 500 stalwarts like IBM, DuPont, and JP Morgan Chase isn't rooted in pivoting with every political change. It comes from holding fast to core values while adapting how they're expressed—exactly what purpose-driven leadership enables.

📊 The Measurable Advantage

The numbers tell a compelling story: purpose-driven companies provide shareholders with a 13.6% CAGR return over twenty years—three times their closest industry competitors. During market turbulence, companies with strong environmental, social, and governance commitments consistently outperform their competitors.

These organizations are three times more likely to retain talent due to higher employee engagement, Deloitte reports. They experience 30% higher innovation rates and see returns on equity averaging 13.1%—9% higher than the S&P.

🏆 Elements of Purpose-Driven Leadership

Mission-driven leadership isn't about crafting clever PR statements. It's about establishing what Michele Bolton calls a "north star" that guides every decision.

According to Jump Associates, truly purpose-driven companies excel in five critical areas:

• Activated Purpose: Moving beyond mission statements to integration in everyday operations

• Aligned Culture: Creating environments where employees connect their work to larger meaning

• Stakeholder Centricity: Considering impacts beyond shareholders

• Next Level Leadership: Developing leaders who embody and communicate purpose

• Future Focus: Making decisions for long-term sustainability over quarterly gains

Companies scoring 65 or higher on these factors significantly outperform their peers financially—a finding that should make even the most profit-focused executive take notice.

🗣️ The Communication Challenge

According to CECP, companies aren't "over-indexing on purpose" but rather struggling to articulate it effectively. The solution? Drop the corporate jargon. Use what Madgavkar calls "purple language"—words that connect "human to human." Say "our people" instead of "social human capital."

Take Chobani founder Hamdi Ulukaya, whose authentic advocacy for refugees carries weight because it connects to both his personal story and business practices. When purpose aligns with business strategy and authentic leadership, the message resonates rather than repels.

🦅 Your Legacy Starts Today

Purpose or profit? This false dichotomy continues to distract business leaders from the transformative power of their integration.

The evidence throughout this issue points to a simple truth: authentically purpose-driven organizations consistently outmaneuver their purpose-deficient competitors in both financial performance and market relevance.

This week, I challenge you to audit your company's mission statement. Does it emphasize long-term value creation or short-term gains?

Then map your decision-making authority—who has the power to activate purpose at every level of your organization? These two simple exercises will reveal if your purpose is truly operational or merely decorative.

Share your thoughts, and we might feature your breaking-the-mold strategy in our next issue.

Stay tuned for our next newsletter featuring "Legacy in Action" — a case study of how one company is transforming its industry through purpose-driven innovation.