The Credibility Of Profit & Purpose
There is much talk of ‘Mission Driven Businesses’. Debate flows on whether profit and purpose are contradictory or complimentary. For me it is a question of credibility between customers and providers. So, what is credibility?
Simply put, credibility is basically trust and it is subjective so at the mercy of perceptions. Accordingly credibility is set by the net difference between expectations and reality. However, it may be useful to dig down further on what credibility is to gain a better grasp of how to optimise the blend of profit and purpose suitable for your brand.
Credibility is comprised of accountability (the ability of consumers to hold providers responsible) and legitimacy. Fritz Scharpf is best known for distinguishing legitimacy as having two aspects: input and output legitimacy. Input legitimacy is authority based on representation and fairness, usually on the basis that those affected by decisions have a right to have a meaningful part in the decisions made. Output legitimacy reflects that those with most power have more rights in making decision making as they have the most power to commit to decisions or not.
So, how does your brand manage its accountability and its legitimacy? Hopefully these concepts provide useful handles by which to reconsider the blend of profit and purpose for you in fostering greater trust with customers.