Does your business have a Chief Giving Officer?
Yoobi, a company that sells school and office supplies, believes that it makes sense for a business to do good as part of its everyday function. In fact, according to Ido Leffler, Yoobi co-founder and CEO, giving back is the foundation of the company's business model, and that's why a Chief Giving Officer has been built in as part of the executive team. For every Yoobi item a consumer buys, another item is donated to a classroom in need.
Profitability with purpose is on the rise in companies today, and for good reason. As society moves toward a desire of having more meaningful lives, many workers look for jobs that help them feel as though they are part of something bigger. Millennials are especially interested in doing work that allows them to feel as though they make the world a better place. If you can adjust your business model to do good, there is a chance that you can attract better young talent--and still make a profit.
"We've demonstrated that you really can do good and make a profit," says Justin Wolff, Yoobi's Chief Giving Officer. He likes working for Yoobi because it gives him a chance to help others while growing a profitable startup. "Seeing those kids' faces when I deliver packages full of school supplies is one of the best sources of job satisfaction."
Profitability With Purpose From Day One
"We made purpose part of our business model from day one," says Leffler. The whole idea behind Yoobi is to solve a problem. Teachers spend more than $1 billion out of their own pockets for school supplies, according to Leffler. Being able to alleviate some of that, while providing fun, colorful supplies that inspire a desire to learn, gives the team at Yoobi a social purpose that goes beyond just making money.
"We're profitable, and we like making a profit, but having the purpose baked in from day one, and the knowledge that we've helped more than a million kids in such a short period of time pushes us to do more," says Leffler.
A big part of making this business model work is finding good partners. Leffler and Wolff both point to their non-profit partners as essential to the giving Yoobi does. Yoobi has partnered with Target as its exclusive retailer, and products are distributed to classrooms through the Kids In Need Foundation. "Finding good partners is important because it helps us work through established channels, rather than trying to manage the distribution on our own," Leffler says.
CO-OP Financial Services, a financial technology company that supports credit unions, recently created CO-OP Purpose, a corporate social responsibility program for credit unions; CO-OP has partnered with Yoobi as part of its initiative. "Credit unions are non-profit, and it's always been our mission to help the community," says Samantha Paxson, CO-OP's Chief Marketing Officer. "We are always looking to lead with purpose."
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Samantha Paxson of CO-OP Financial Services announces CO-OP Purpose. Image courtesy of CO-OP.[/caption]
Paxson hopes that recent initiatives to focus on purpose can help credit unions improve their own businesses and do good where it's most needed. In partnering with Yoobi, Paxson hopes to help children develop financial literacy. Kits designed to help underprivileged children master financial concepts will be delivered along with Yoobi's classroom supplies.
"Our purpose isn't just charity," Paxson points out. "We help people with their financial well-being. Helping people stay on track financially can make a big difference their whole lives."
Partnering with Yoobi also helps CO-OP in its own efforts to encourage purpose in its non-profit business model. "We hope to get more credit unions involved at their own local level as well, and not just with our bigger initiatives," says Paxson.
Does Your Business Embrace Profitability with Purpose?
Leffler and Paxson both point out that offering a social impact as part of doing business matters more than ever. Looking for problems to solve, and building a business around solving those problems can go a long way.
Research indicates that consumers want to know that they are buying from socially responsible companies--they want to feel good about their purchases. Workers want to be employed by companies that offer a bigger vision for their communities--and for the world.
People today are looking for causes to support. You can provide that cause and that vision with your business. Even if you haven't started with a social purpose from day one, you can still add meaning to your business, and shake things up so that you are doing more than just trying to turn a profit.
Businesses that understand the importance of advancing social causes and doing good in their communities are more likely to succeed in the coming years. Technology and our country's shift to the service sector has changed our society. Our values and goals are changing; millennials are highly representative of that shift.
A job isn't just a job anymore. Business, careers, and jobs are part of our lives, and who we are. And many of us want to feel meaning in our lives. Social entrepreneurs and companies like Yoobi, along with partners like CO-OP, are leading the way to show that it's possible to do good and build a successful business.
