The Third Way: Building a Profitable Business with a Social Purpose

We used to live in a world which was divided between two types of companies. The ‘for profit’, who focused solely on how much money they could make, and the ‘not for profit’, which had a wider purpose and less emphasis on turnover.

It has now become clearer than ever that we, in this day and age, live in a time where there is a mix of both; a third way.

I recently read a fascinating article in the The Times’ business section, which looks into what the main role of a modern company actually is. Do businesses simply seek to serve the financial interests of their shareholders? Are interests generally broader than that?

Of the 700 directors surveyed, one third admitted that the motive of their business is solely financial. However, the findings fascinated me.

Close to 50% of the directors said their purpose as a company goes way beyond just profit: that they had a mission to bring value to society - a social purpose.

This, frankly, filled me with joy, because it’s something I’ve always been so passionate about. At times, running a purpose driven company can feel a little bit lonely and isolating. It’s comforting to see the increasing number of businesses that are now focusing on the same thing, which in my mind can only benefit us as a society.

Of course, YuLife is a ‘for profit’ company. But this is where the ‘third way’ I mentioned earlier comes into play. It is wholly possible to focus on building a profitable company whilst also prioritising values and purpose. That is something I’m so proud to say that we do. There is no longer a divide between ‘profit vs non profit’.

That said, being mission-driven is not always easy. It means we have to strongly consider if our company is the right fit for the people we encounter day-to-day.

Take hiring for example; we have to be rigorous when deciding if someone is the right person to join YuLife because this is more than just a ‘job’ to us - it’s a journey. We’re on this dance together!

The same goes for fundraising - we’ll only work with investors who believe in the same things as we do.

It’s fair to say there’s been a shift of mindset due to the pandemic. This is the new normal; a world in which people have been forced to look at enterprise in a different way. Through all of the challenges coronavirus has introduced, this new perspective is a silver lining.

I hope wholeheartedly that in the near future, the third of respondents who were still solely profit-focused realise that there is indeed room for social purpose in business.