As companies face uncertain economic times and regulatory rollbacks, many are contemplating difficult decisions that could produce long-term consequences or rewards.
Do they scale back resources and cut regulatory measurements and compliance? Or do they remain focused on protecting employees and the environment to maintain good standing with their stakeholders?
The demands placed on businesses by customers, communities, stakeholders and employees today have never been higher.
Mistakes made from short-term sacrifices might be remembered by stakeholders for years to come.
In his book, Sustainable Success: How Businesses Win as a Force for Good, Sphera CEO Paul Marushka highlights companies and business leaders who pursued and achieved success through principles and a commitment to the environment, their employees, shareholders and customers.
Marushka points out that companies like Patagonia, Ford Motor Company and Statistical Analysis Software (SAS) can make money and do the right thing. And firms that show both high purpose and management clarity can achieve higher financial and stock market performance in the future.
Here’s a brief look at how these three companies found their noble purpose and put good intentions at the heart of their business strategies. They recognized shifting cultural and business expectations and took the lead, using principles, data, expertise and technology to drive change. A deeper dive into their successes can be found in Marushka’s book.
Patagonia
“Every time I do the right thing, I make money.”
– Patagonia Founder Yvon Chouinard
After half a century, Patagonia remains one of the most successful outdoor apparel brands, financially and culturally. Sustainability and the desire to do the right thing have been central to its brand, known for requiring 100% recycled materials in its rugged clothing and reducing waste across its global operations.
Chouinard’s first love was rock-climbing equipment, which he forged in his parents’ backyard in California. He sold climbing gear to fellow mountaineers from the trunk of his car, which later inspired him to make rugged clothing as purposeful and as reliable as his equipment.
But he didn’t stop there. The brand’s clothing had to be multi-functional, made to last and cause the least amount of harm during production. He believed one of the best things consumers can do to reduce waste is to buy the best possible product and keep it for as long as possible.
After discovering the damaging impact of cotton on the environment, for example, Patagonia switched to regenerative organic cotton and hemp that returns precious topsoil to farmland and traps carbon dioxide.
The company also created Worn Wear, a used clothing and repair program that accepts worn-out Patagonia products for recycling or repurposing.
Patagonia’s commitment to doing the right thing has inspired other companies to adopt techniques such as life-cycle analysis, ecosystemic thinking, stakeholder management and supply chain risk management to understand and manage their environmental and operational impacts.
The company is a leader in understanding the impacts of its operations on people and the planet.
Ford Motor Company
“I will build a car for the great multitude. It will be large enough for the family, but small enough for the individual to run and care for. It will be constructed of the best materials, by the best men to be hired, after the simplest designs that modern engineering can devise. But it will be so low in price that no man making a good salary will be unable to own one.”
– Ford Founder, Henry Ford
Although a much older story dating back to 1908, Henry Ford is remembered for revolutionizing production to make cars affordable for the middle class while paying workers a livable wage.
Following his dream of making driving affordable for all, Ford sold more than 15 million Model Ts over two decades at home and abroad. By 1918, half of all cars in the U.S. were “Tin Lizzies,” available, as Ford joked, “in any color the customer wanted, as long as it was black.”
The game-changing success of the Model T held true to the Formula for Good, combining technology, expertise and data. Ford wanted to offer a ride that was economical but exceptionally rugged so it could withstand the poor state of unsurfaced roads at the time.
Thanks to new efficiencies in manufacturing and other innovations, Ford was able to drop the price of the Model T from $950 to $360 and eventually down to $290 in 1926.
In addition, he raised employee pay to$5 a day at a time when the average wage for similar work was $2, giving them the spending power to buy a Model T of their own.
By turning the car from a plaything of the rich to a utilitarian vehicle for the growing middle classes, Ford left an indelible mark on social history.
“A business that makes nothing but money is a poor business,” he later wrote. “To do more for the world than the world does for you—that is success.”
SAS Software
“Treat employees like they make a difference and they will.”
– Co-Founder and CEO of SAS, Jim Goodnight
Founded in 1976, Statistical Analysis Software (SAS) is one of the most trusted data and AI sources on the market. The company boasts of more than 40 years of analytics innovation made possible by more than 12,000 employees across 140 countries. The company’s CEO, Jim Goodnight, has overseen sustainable growth that has left many competitors on the side of the road.
Much of the company’s success is attributed to research and development, with a quarter of the company’s annual expenses invested in determining what the customer will need next. This forward focus has led to several technological pivots that helped avoid failure and, along with strong governance, provided the resiliency to endure market slowdowns.
By treating employees with respect and support, SAS benefits from low turnover and worker loyalty. Support services provided to employees by SAS range from prenatal guidance to marriage counseling, locating care homes for aging parents, and hairdressing.
SAS shows the clear crossover between social good and business strategy in the way it trains the next wave of data analysts. The company helps students build skills to succeed in the classroom with literacy initiatives that challenge them to explore solutions to global issues through a deeper understanding of data.
The stories of Patagonia, Ford and SAS demonstrate a timeless truth: businesses that prioritize purpose alongside profit not only endure but thrive. By committing to long-term strategies that benefit employees, customers and the planet, these companies have built trust that transcends market fluctuations and regulatory changes.
