Today, creating a positive impact for companies and leaders is no longer just a "good intention" or an "extra" activity; it has become a strategic imperative and a fundamental competitive advantage. The reasons for this are multifaceted and directly affect business outcomes:

Why Creating Positive Impact is Important for Companies Today:

1. Financial Performance and Investor Confidence (ESG & ROI):

   • Increased Profitability and Revenue: Research shows that purpose-driven brands and companies integrating sustainability strategies into their business models grow faster and achieve higher profits (e.g., Unilever's purpose-led brands growing 69% faster).

   • Lower Cost of Capital: Companies with strong ESG (Environmental, Social, and Governance) performance are favored by sustainable investment funds, leading to a lower cost of capital. Investors are increasingly gravitating towards companies with long-term value creation potential and robust risk management.

   • Increased Company Value: Positive ESG performance directly enhances company value and leads to higher market valuations.

2. Brand Reputation and Customer Loyalty:

   • Strong Brand Perception: Consumers increasingly prefer brands with ethical values and those sensitive to social and environmental issues. Positive impact enhances a brand's credibility, reputation, and appeal.

   • Customer Loyalty: Purpose-driven brands build deeper emotional connections with consumers, leading to increased customer loyalty and repeat purchases.

   • New Market Opportunities: Sustainability and social responsibility offer the potential to create new product categories and market segments (e.g., Beyond Meat, Warby Parker).

3. Talent Attraction and Employee Engagement:

   • Attracting Top Talent: Today's skilled workforce values not only salary but also the company's purpose and its contribution to society. Companies with a positive impact are more successful in attracting and retaining top talent.

   • Increased Productivity and Innovation: Employees are more motivated, engaged, and consequently more productive and creative when they see their company contributing positively to society and the environment. A happy and inclusive work environment fosters innovation.

4. Risk Management and Resilience:

   • Mitigating Legal and Reputational Risks: Ethical and sustainable practices (e.g., transparent supply chains, ethical AI use) minimize potential legal and reputational risks associated with human rights violations, environmental scandals, or algorithmic bias.

   • Operational Efficiency: Sustainable practices often lead to resource efficiency, waste reduction, and cost savings (e.g., green logistics, energy efficiency).

   • Supply Chain Resilience: Working with ethical and local suppliers makes the supply chain more resilient against global crises.

5. Competitive Advantage and Market Leadership:

   • Differentiation: Positive impact serves as a strong differentiating factor, making a company a preferred player in the market.

   • Setting Industry Standards: Pioneering companies set new industry standards in sustainability and impact, achieving market leadership (e.g., Tesla, Ørsted).

   • Long-Term Sustainability: Companies that operate in harmony with society and the environment are more successful and resilient in the long run.

Why Creating Positive Impact is Important for Leaders:

1. Strong Leadership Brand and Reputation:

   • Leaders who create a positive impact are perceived as more credible, respected, and inspiring. This strengthens their personal leadership brand and expands their sphere of influence.

   • It helps them protect their reputation even during times of crisis.

2. Employee Motivation and Inspiration:

   • Purpose-driven leaders unite their teams around a common vision, increasing employees' intrinsic motivation. This leads to higher job satisfaction, engagement, and performance.

   • They create an environment that encourages risk-taking and innovation.

3. Improved Decision-Making:

   • Positive leaders can make better decisions under pressure. They develop a broader perspective and adopt a solution-oriented approach to problems.

   • Leaders who act in alignment with their values shape long-term success.

4. Shaping Legacy:

   • By creating a positive impact, leaders leave a lasting legacy that shapes not only their own careers but also the future of their companies and society.

In conclusion, creating a positive impact today is not merely a moral obligation for companies and leaders; it is a strategic imperative that accelerates business growth, provides a competitive advantage, mitigates risks, and creates long-term value. This is the new normal in the business world.