SuperCorp

"Making money and making the world a better place don’t have to be in opposition with one another." This book explores how businesses can thrive while staying true to values that benefit society.

1. A New Kind of Business: Profit Meets Purpose

The traditional view of corporations as profit-driven entities is being challenged by a new model: vanguard companies. These businesses prove that profitability and social responsibility can coexist.

Vanguard companies are not charities, but they integrate social and environmental goals into their core operations. They aim to solve societal problems while maintaining financial success. This approach appeals to millennials, who want careers that align with their values and offer financial stability.

For example, IBM has a long history of community involvement. After the 2004 tsunami in Southeast Asia, IBM employees used their expertise to create technology that sped up relief efforts. Similarly, Procter & Gamble has developed products that address global health issues, such as water purification systems for underserved communities.

Examples

• IBM’s disaster relief technology after the 2004 tsunami.
• Procter & Gamble’s water purification initiatives.
• Banco Real’s transformation into a socially responsible bank under Fabio Barbosa.

2. Culture as a Foundation for Resilience

In a volatile economy, vanguard companies rely on strong corporate cultures to adapt and thrive. These cultures emphasize trust, transparency, and shared values.

Digitas, a digital marketing firm, faced a crisis after the dot-com bubble burst. CEO David Kenny focused on strengthening the company’s culture by fostering open communication and building trust. Weekly voice mails to employees addressed market challenges honestly, creating a sense of unity and purpose.

This cultural focus not only helped Digitas survive but also allowed it to form strategic partnerships with tech giants like Microsoft and Yahoo, ensuring its relevance in a rapidly changing industry.

Examples

• Digitas’s weekly voice mails to build trust during a crisis.
• Partnerships with Microsoft and Yahoo to stay competitive.
• IBM’s emphasis on collaboration and innovation as cultural pillars.

3. Values Drive Success

Vanguard companies don’t just talk about values; they live them. This commitment builds trust with customers and investors, leading to long-term success.

Banco Real’s transformation under Fabio Barbosa is a prime example. By focusing on social and environmental responsibility, the bank revitalized its operations and outperformed competitors. Initiatives like turning a crime-ridden alley into a garden with kiosks for young workers demonstrated the bank’s dedication to its community.

This approach not only improved Banco Real’s reputation but also boosted its profits, which grew by 20% annually between 2001 and 2006.

Examples

• Banco Real’s alley-to-garden project in Sao Paulo.
• IBM’s educational tools like Watch-Me!-Read for public schools.
• Procter & Gamble’s innovative product designs to reduce costs and waste.

4. Innovation Through Collaboration

Innovation is a hallmark of vanguard companies, and they achieve it by fostering collaboration across teams and with external partners.

Procter & Gamble’s Brazil branch faced declining revenues for its Always brand. By involving employees, trade partners, and advertising agencies in brainstorming sessions, the company developed a cost-effective packaging solution. This transparent packaging reduced production costs and increased profits.

IBM also exemplifies this collaborative spirit. Its partnership with public schools led to the creation of tools like Watch-Me!-Read, which helps children improve their literacy skills.

Examples

• Procter & Gamble’s collaborative approach to redesigning Always packaging.
• IBM’s partnerships with schools to develop educational tools.
• Digitas’s alliances with tech companies to stay ahead of industry trends.

5. Flexible Workplaces Empower Employees

Vanguard companies prioritize employee well-being by offering flexible work arrangements and empowering decision-making.

IBM allows 40% of its workforce to work remotely, giving employees the freedom to balance their personal and professional lives. This flexibility fosters trust and loyalty, making IBM an attractive employer.

Additionally, vanguard companies flatten traditional hierarchies, enabling employees to make decisions without waiting for managerial approval. This approach encourages innovation and ensures that employees focus on what’s best for the company, not just their bosses.

Examples

• IBM’s remote work policy for 40% of its workforce.
• Flexible schedules for single parents and other employees with unique needs.
• Empowering employees to make decisions and interact directly with customers.

6. Diversity as a Strength

In a globalized economy, diversity is essential for understanding and succeeding in different markets. Vanguard companies embrace and celebrate diversity within their workforce.

Banco Real created a diversity committee to promote awareness and inclusion among employees. Events like the “adjective name tag” activity highlighted individual differences, fostering a culture of respect and collaboration.

This focus on diversity helps vanguard companies avoid cultural missteps and build stronger connections with local communities. For example, hiring local talent when entering new markets ensures a deeper understanding of cultural nuances.

Examples

• Banco Real’s diversity committee and employee events.
• Hiring local talent for market expansion in India and China.
• Procter & Gamble’s culturally sensitive marketing strategies.

7. Trust and Transparency Build Loyalty

Vanguard companies understand that trust is the foundation of strong relationships with employees, customers, and investors.

David Kenny’s weekly voice mails at Digitas are a testament to the power of transparency. By openly discussing challenges and decisions, he built trust and unity within the company.

This approach extends to customer relationships as well. Companies that demonstrate their commitment to social and environmental values earn the loyalty of socially conscious consumers.

Examples

• Digitas’s transparent communication during market instability.
• IBM’s community-focused initiatives to build trust.
• Banco Real’s visible commitment to improving local environments.

8. Social Responsibility as a Competitive Advantage

Vanguard companies prove that doing good can also be good for business. Their commitment to social responsibility sets them apart in the marketplace.

Banco Real’s focus on community improvement not only enhanced its reputation but also attracted customers and investors. Similarly, Procter & Gamble’s innovative product designs reduced costs while addressing environmental concerns, boosting both profits and brand loyalty.

These examples show that integrating social values into business strategies can lead to financial success.

Examples

• Banco Real’s community projects and financial growth.
• Procter & Gamble’s cost-saving, eco-friendly packaging.
• IBM’s educational tools that benefit schools and enhance its brand image.

9. The Future of Business is Purpose-Driven

As younger generations enter the workforce, the demand for purpose-driven companies will only grow. Vanguard companies are leading the way by showing that businesses can be forces for good.

Millennials and Gen Z workers prioritize values and social impact when choosing employers. Vanguard companies attract top talent by aligning their operations with these priorities.

This shift is not just a trend but a fundamental change in how businesses operate. Companies that fail to adapt risk losing relevance in a world that increasingly values purpose over profit.

Examples

• Millennials’ preference for socially responsible employers.
• IBM’s ability to attract talent with its flexible and purpose-driven culture.
• Banco Real’s success in aligning its values with employee and customer expectations.

Takeaways

1. Build a strong corporate culture based on trust, transparency, and shared values to navigate economic challenges.
2. Embrace diversity and inclusion to better understand and succeed in global markets.
3. Integrate social and environmental goals into your business strategy to attract customers, investors, and top talent.