A recent study published in the Journal of Marketing demonstrates that organisations integrating social objectives into their core business strategies contribute positively to society and achieve significant business benefits, creating a win-win scenario. This research, conducted by scholars from Texas A&M University, Monash University, St. John’s University, Fordham University, and NHH Norwegian School of Economics, has been compiled in a paper titled “Social Profit Orientation: Lessons from Organisations Committed to Building a Better World.” It delves into how aligning an organisation’s operations with social and environmental goals can yield sustainable social and financial returns. Leonard L. Berry, a University Distinguished Professor of Marketing at Texas A&M University and the study’s lead author, emphasised the role of businesses as agents of positive change amid global challenges such as climate change, poverty, and healthcare disparities. He highlighted that adopting a social profit approach allows companies to ignite innovation, build stakeholder trust, and contribute to a sustainable future.

The research team conducted 62 comprehensive interviews with 21 diverse for-profit and non-profit organisations globally, gathering actionable strategies and insights for organisations striving to make a significant social impact and achieve economic success. The key findings indicate that organisations embedding social and environmental goals into their mission experience improved reputation and customer loyalty as consumers favour businesses genuinely committed to societal issues. Additionally, aligning company values with purposeful initiatives helps attract and retain motivated employees who find meaning in their work and fosters innovation and market growth through creative problem-solving and new market opportunities.

The study provides real-world examples of organisations implementing these strategies effectively. Some are reducing their carbon footprint through sustainable supply chain practices, aiding environmental preservation while realising cost savings and operational efficiencies. Others are advancing cancer treatment with precision medicine, improving survival rates and setting new healthcare standards. At the same time, some promote financial inclusion through innovative services that drive economic empowerment and open new revenue streams.

The researchers offer several recommendations for business leaders and marketers to integrate social goals into their business strategies effectively. They advise defining and embedding clear social and environmental objectives; they recommend developing performance metrics that balance financial results with social impacts, such as employee well-being, customer satisfaction, and environmental sustainability. These metrics should be incorporated into performance evaluations and leadership compensation to foster a commitment to these goals at all levels of the initiative. Selection is crucial, and the study suggests using decision frameworks to assess potential projects’ relevance, synergy with company missions, scalability, and measurable impact. This approach yields positive change. Furthermore, adopting established models like ESG criteria and the UN Sustainable Development Goals can systematically guide and assess social initiatives’ effectiveness.

Finally, cultivating stakeholder engagement is underscored with a call for transparent and consistent communication about organisational commitments. This approach builds trust and facilitates collaboration with customers, employees, investors, and community partners. Lerzan Aksoy, Dean of the Gabelli School of Business at Fordham University and co-author of the study encourages sectors to realign their strategies toward creating shared value, highlighting that embracing a social profit orientation is not just ethically imperative but also strategically brilliant. This alignment promotes innovation, competitiveness, and long-term success, paving the way for an interconnected world of business success and societal well-being.

More information: Leonard L. Berry et al, Social Profit Orientation: Lessons from Organizations Committed to Building a Better World, Journal of Marketing. DOI: 10.1177/00222429241258495

Journal information: Journal of Marketing Provided by American Marketing Association