Hong Kong philanthropist on how big business can do good and make money
In a new book, John Wood, founder of education charity Room to Read, explains how companies and NGOs can work together and highlights the visionary firms that value social impact as much as turning a profit
John Wood is founder of Room to Read, a global non-profit focused on literacy and girls’ education. His latest book, Purpose, Incorporated, explores the growing shift from traditional free-market capitalism to the deep integration of purpose into the values and business models of today’s companies.
The book explains why many business leaders are rejecting the idea that doing good is not compatible with turning a profit, and shows how they are finding ways to align purpose or social impact with their business goals.
Wood will donate all profits from the book to Room to Read with the goal of opening 10 new libraries, serving 4,000 children.
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Q. The term “purpose” is getting a lot of usage these days – can you give your definition?
A. “Purpose” is all about when a company makes a decision to stand for something that is bigger than itself and its own self-perpetuation. When it’s willing to provide benefits outside of what companies have traditionally stood for – which is simply making money for themselves.
Q. Why has purpose traditionally been seen as a poor fit for business?
A. There is a real danger in the idea put forward by Milton Friedman that business has no social purpose apart for increasing the amount of money it can return to shareholders. Traditionally there has been a clear delineation between the for-profit sector and the non-profit sector – the idea being that if you want to solve social problems you look to NGOs and government and business should focus on nothing but its own profitability.