To support educators in bringing these important concepts to life, the authors have developed comprehensive teaching resources related to this research, including a classroom-ready PowerPoint deck and a detailed teaching guide. These resources are designed to inspire and equip students to apply Social Profit Orientation principles in their future careers. These resources can be found here.
The groundbreaking Rise Ahead Pledge commitment that emerged following the 2024 Davos Annual Meeting saw leading companies vow to invest in enterprises primarily focused on societal well-being. This initiative aims to raise $1.1 trillion to build a more sustainable, equitable world.
In a new Journal of Marketing study, we explore similar transformative strategies, offering insights into how organizations can significantly enhance the common good through a social profit orientation.
Addressing the complex problems of the world—climate change, poverty, hunger, human rights, pandemics, wars, education, and more—requires business involvement. The field of services marketing, guided by the transformative service research (TSR) agenda, can play a crucial role in helping executives develop service-specific solutions to these challenges.
The Benefits of a Social Profit Orientation
Organizations with a social profit orientation integrate the creation of sustainable, positive social and environmental impacts into their core mission. This approach goes beyond traditional corporate social responsibility by embedding social goals directly into business strategies, creating sustained societal impact alongside business growth.
We find that organizations adopting this orientation not only contribute positively to society but also achieve competitive advantages, including enhanced reputation, becoming an employer of choice, and driving innovation.
Organizations that adopt a social profit orientation not only contribute positively to society but also achieve competitive advantages, including enhanced reputation, becoming an employer of choice, and driving innovation.
Our study is based on 62 in-depth interviews with leaders from 21 diverse for-profit and non-profit organizations globally. These organizations demonstrate how integrating social profit goals into business operations can align business success with social progress. Practical examples from these enterprises offer valuable guidance to others seeking to invest in societal well-being.
From reducing carbon footprints to enhancing healthcare accessibility and promoting financial inclusion, these organizations are setting industry benchmarks. Some have developed products that are both profitable and socially beneficial, while others have transformed their supply chains to be more sustainable and ethical. This dual focus on profitability and social impact is proving to be a powerful strategy for business sustainability and societal enhancement.
This alignment not only attracts top talent motivated by purpose but also helps retain them, driven by the meaningful work they are engaged in. Externally, this orientation strengthens customer and stakeholder relationships, as more consumers engage with brands that demonstrate genuine concern for societal issues.
Recommendations for Chief Marketing Officers
Our study offers lessons for CMOs and other organizational leaders:
- Performance metrics must balance financial and nonfinancial goals, and short-term and long-term outcomes. Metrics such as employee satisfaction, turnover, customer experience, product and service quality, vendor relations, carbon footprint, and the impact of social initiatives should factor into leadership compensation.
- We developed a decision tree to guide leaders in identifying social initiatives with the greatest potential. Key questions include:
- Is the initiative directed toward an important, underserved social need?
- Does it create synergy with the organization’s broader mission?
- Will it bolster primary operations and goals?
- Will it strengthen or create new stakeholder relationships?
- Is it scalable?
- Is its impact measurable?
- Managers should link initiatives to a “theory of change” and document how they impact beneficiaries. Frameworks such as ESG (Environmental, Social, and Governance) and the UN Sustainable Development Goals (SDG) can guide managers in assessing the societal and environmental impact of social initiatives.
- Hiring employees whose personal values align with the organization’s mission is more likely to result in deeply engaged, motivated, and passionate workers.
- Clearly conveying the organization’s purpose and commitment through storytelling and other communications enhances internal and external stakeholder engagement. Monitoring stakeholder sentiment allows for timely corrective action when needed.
- Prize the developing of stakeholder trust and collaboration. Creating social profit requires the pooling of talents and judicious sharing of resources.
Our research suggests that organizations across all sectors should consider realigning their strategies to support broader societal goals. We urge leaders to evaluate their operations and strategies to incorporate social profit goals, driving not just economic but also social progress. This approach will help bridge global inequalities and create more resilient and innovative organizations.
Read the Full Study for Complete Details
Source: Leonard L. Berry, Tracey S. Danaher, Timothy Keiningham, Lerzan Aksoy, and Tor W. Andreassen, “Social Profit Orientation: Lessons from Organizations Committed to Building a Better World,” Journal of Marketing.
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Leonard L. Berry is University Distinguished Professor of Marketing, M.B. Zale Chair in Retailing and Marketing Leadership, Regents Professor, Texas A&M University, and Senior Fellow, Institute for Healthcare Improvement, USA.
Tracey S. Danaher is Professor of Marketing, Monash University, Australia.
Timothy Keiningham is J. Donald Kennedy Endowed Chair in E-Commerce and Professor of Marketing, St. John’s University, USA.
Lerzan Aksoy is George N. Jean PhD Chair in Business and Professor of Marketing, Fordham University, USA.
Tor W. Andreassen is Professor of Innovation, NHH Norwegian School of Economics, Norway.