Why purpose-driven companies are thriving (and can change the world) | Ryan Hillier | TEDxMontreal
Summary
TLDRThe speaker shares their journey from a high-flying corporate lawyer to founding a one-for-one law firm, providing legal services to both paying clients and those in need for free. They argue that purpose-driven businesses are the future, as they not only succeed economically but also contribute positively to society, using their own firm's rapid growth and impact as evidence.
Takeaways
- 🏡 The story of Mary, a single parent served an eviction notice, illustrates the vulnerability and struggles faced by many.
- 💼 The speaker's journey from a high-paying corporate lawyer to founding a one-for-one law firm reflects a personal quest for purpose and social impact.
- 🌟 The concept of 'purpose' is presented as a critical third ingredient, alongside passion and profit, for entrepreneurial success in the 21st century.
- 💡 The one-for-one business model is introduced as a way to balance profit and social responsibility, where every hour billed translates to an hour of pro bono service.
- 📚 The speaker contrasts the traditional profit-first mentality with a new paradigm where businesses are expected to contribute positively to society.
- 💼 The business case for purpose is supported by behavioral science, which shows that consumers prefer brands that align with their values.
- 📈 Purpose-driven businesses are shown to attract and retain top talent, as they offer opportunities for personal fulfillment alongside professional success.
- 💹 Investors are recognizing that companies integrating purpose into their models outperform their peers, as evidenced by the growth of Unilever's purpose-led brands.
- 🌐 The rapid change and disruption in the business landscape make purpose a competitive advantage for companies looking to thrive in the future.
- 🙌 The call to action for entrepreneurs, employees, investors, and consumers to support and create purpose-driven businesses to address societal challenges.
Q & A
What was the speaker's initial goal when they went to law school?
-The speaker initially aimed to be a lawyer who could protect the defenseless and vulnerable, with the hope of reducing inequality and bringing greater justice to those who had limited access to legal resources.
How did the speaker feel after working for top law firms for many years?
-The speaker felt lost and disconnected from their original goal of helping those in need, despite having a high salary, a fancy office, and the admiration of peers and family.
What is the concept of the 'one-for-one' law firm that the speaker founded?
-The 'one-for-one' law firm model provides one hour of pro bono legal service to low-income individuals, nonprofits, and early-stage entrepreneurs for every hour of legal service provided to paying clients.
What is the significance of the term 'purpose' in the context of the speaker's business philosophy?
-In the speaker's business philosophy, 'purpose' refers to the third imperative for starting a business, which is the integration of a meaningful social goal alongside the traditional economic objectives.
Why did the speaker feel compelled to start a purpose-driven business?
-The speaker felt compelled to start a purpose-driven business due to the growing awareness of the need for businesses to contribute positively to society and the potential for such businesses to succeed in the market.
What are the three main reasons the speaker gives for businesses integrating purpose into their models?
-The speaker outlines three reasons: 1) Purpose-led brands are more successful in acquiring and retaining customers. 2) Purpose helps businesses engage the best employees. 3) Businesses that integrate purpose are growing faster than traditional companies.
How does the speaker's law firm measure its success in terms of pro bono work?
-The speaker's law firm measures its success by the number of individuals and organizations it has helped without charge, and the number of free legal service hours provided, which is directly proportional to its economic success.
What is the speaker's vision for the future of entrepreneurship?
-The speaker envisions a future where social entrepreneurship becomes the norm, with businesses inherently designed to address social challenges alongside their economic goals.
How did the speaker's law firm assist Mary, the woman facing eviction?
-Mary was assisted by the speaker's law firm when she was served an eviction notice. The firm provided her with proper legal representation, which resulted in a successful defense and victory before the rental board.
What is the speaker's call to action for the audience?
-The speaker calls on the audience to recognize the importance of purpose-driven businesses and to actively support and participate in creating such businesses, as they are not just surviving but thriving.
What is the speaker's view on the role of businesses in solving societal challenges?
-The speaker believes that businesses, especially those that are purpose-driven, have a significant role to play in addressing and solving some of the biggest challenges faced by society.
Outlines
🏡 The Struggles of a Single Parent
The paragraph introduces the story of Mary, a single parent who works two jobs to support her family. After a long day, she faces the shock of being served an eviction notice. This unexpected event triggers a cascade of thoughts about her rights and the possible reasons behind the notice. The story highlights the vulnerability of individuals like Mary and the author's personal journey from law school, where they aspired to help the vulnerable, to losing sight of that goal while working for prestigious law firms. The author reflects on the gap between their high-paying job and their desire to contribute positively to society, eventually leading to the creation of a one-for-one law firm that provides legal services to both paying clients and those in need.
💼 The Traditional Entrepreneurial Mindset
This paragraph discusses the traditional view of entrepreneurship, where success is measured by wealth accumulation. The author references the biographies of Sam Walton and Bill Gates, highlighting their passion for their respective industries and their desire for profit. The paragraph emphasizes the historical narrative that entrepreneurs should first amass wealth and then give back to society. However, the author suggests that there is a shift happening, with a new ingredient—purpose—being added to the recipe for entrepreneurial success.
🌟 The Emergence of Purpose-Driven Entrepreneurship
The speaker shares their belief in the growing importance of purpose in entrepreneurship. They discuss how businesses like Patagonia and Ben & Jerry's have integrated purpose into their models, using their platforms to address societal issues. The author's realization that purpose should not be an accessory but a core component of business operations led them to create a law firm that operates on a one-for-one model, providing pro bono services alongside paid work. This approach not only aligns with their values but also sets them apart in the market, attracting clients who appreciate their social mission.
🚀 The Power of Purpose in Business Growth
In this paragraph, the author outlines the benefits of integrating purpose into business models. They discuss how purpose-led brands are more successful in attracting and retaining customers, as people are drawn to brands that align with their values. The author also shares how their law firm's purpose-driven model has helped them attract top talent, as employees seek meaningful work. They provide evidence that businesses integrating purpose are outperforming traditional companies and are gaining the attention of investors who recognize the link between social impact and financial success.
🌐 The Impact of Social Entrepreneurship
The final paragraph emphasizes the broader impact of social entrepreneurship. The author shares a specific case where their law firm provided free legal services to a woman named Mary, who was facing eviction. This example illustrates how businesses can make a tangible difference in people's lives while still being economically successful. The author calls for a paradigm shift in which all businesses, not just law firms, integrate purpose into their core models, arguing that this approach is not only morally right but also a strategic advantage in addressing societal challenges.
Mindmap
Keywords
💡single parent
💡eviction
💡pro bono
💡inequality gap
💡entrepreneurship
💡purpose-driven business
💡access to justice
💡disruption
💡social entrepreneurship
💡one-for-one model
💡corporate social responsibility (CSR)
Highlights
A single parent's struggle with eviction and the emotional turmoil it causes.
The realization of a lawyer's initial dream to protect the vulnerable and reduce inequality.
The loss of purpose and the feeling of being lost in a high-paying corporate law career.
The concept of 'one-for-one' legal services, where every hour billed is matched with an hour of pro bono work.
The belief that making money and doing good are not mutually exclusive goals.
The historical perspective on entrepreneurship focusing on passion and profit.
The emergence of 'purpose' as the third ingredient for entrepreneurial success.
Examples of purpose-driven companies like Patagonia and Ben & Jerry's.
The idea that businesses should have a dual purpose of profit and social good.
The personal journey from a traditional law firm to founding a purpose-driven law firm.
The business model that links corporate client revenue to pro bono legal services for the needy.
The growth of the law firm from a small team to a larger group of legal professionals.
How purpose-driven businesses can attract and retain top talent.
The increasing importance of purpose in business as noted by investors like Larry Fink of Blackrock.
The impact of purpose-driven businesses on access to justice and societal challenges.
The call to action for entrepreneurs to create businesses that integrate purpose into their core.
The potential for social entrepreneurship to redefine what it means to be an entrepreneur.
The role of consumers, employees, and investors in supporting and creating purpose-driven businesses.
Transcripts
I want you to imagine that you're the
single parent of two it's Thursday about
9 p.m. and you're just getting home from
the second of two jobs you carry to
support your family you've picked up
your kids from their grandparents and
put them to bed you sit down in your
living room and go to turn on the TV but
suddenly the doorbell rings unusual you
think I never get visitors at this hour
you head to the doorway and that's when
it happens
it's a bailiff and you've been served
before you can even open the envelope a
million scenarios come racing through
your mind is this something from my ex
was i late on a student loan have I
inherited a million dollars from a
long-lost relative if only now it's your
landlord you're being evicted you have
30 days to pack up your things and find
a new place
you read the notice not quite agreeing
and worse not quite understanding what
rights you do have this is Mary's story
but it could just as easily be yours
when I play it to law school some 15
years ago I thought that if I was lucky
I would be the lawyer to protect the
defenseless and the vulnerable I thought
that I'd play some role in reducing the
inequality gap and in bringing a greater
sense of justice to those for whom the
Ross seemed totally inaccessible but
very quickly I lost sight of that goal I
got lost for the better of ten years I
worked at two of the best law firms in
the country representing
large corporations and wealthy business
people fantastic salary fancy office the
praise of my peers the admiration of
family and friends in a sense I had made
it but I was lost in the back of my mind
often when my head touched the pillow
after another exhausting day I wondered
how I'd lost sight of my not so distant
dream to not only work on the best cases
but also to help those who needed me
most I'd set out to make a difference
but here I was taking the most
conventional of paths now for a time I
was able to appease those inner thoughts
by volunteering my early mornings and
late evenings to charities foundations
nonprofits I was even able to fit in a
little bit of pro bono work of my own
thanks to some very understanding bosses
but I wondered for how long I could go
on with one foot planted in my real job
and the other in projects that in my
view would help make the world a better
place I became obsessed with the endless
Canyon that seemed to exist between on
one side how I earned an MD above living
and on the other how I want to give back
to society as much or more than what I
was taking from him now luckily from
that obsession grew the determination to
solve a problem how could I continue to
represent clients who could afford me
well also defending individuals and
organizations who didn't have the money
to pay for a lawyer I feel fortunate to
be standing here today in front of you
as the founder and chief executive
officer of the first one-for-one law
firm
in the world for every hour of legal
services we provide to paying clients we
give back 1 hour of pro bono to
low-income individuals nonprofits and
early-stage entrepreneurs we bill an
hour we give back an hour
some call it paying it forward I like to
think of it as the way we should be
doing business in the 21st century
for the earlier part of my life I
thought of making money and doing good
as two mutually exclusive goals normal
right when we consider the examples of
entrepreneurs who were acclaimed as the
most successful in modern times their
motto is simple make your money first
then give some of it back
I remember reading the biographies of
two of the most revered founders of the
last century Sam Walton who created
Walmart and Bill Gates who started
Microsoft and I distinctly remember that
these two businessmen despite being
roughly 50 years apart in age shared two
reasons for starting their businesses
the first one was passion passion for
the core focus of their venture for
gates it was innovative technology for
Walton it was providing consumer goods
at the best possible price see companies
fundamentally cannot succeed if their
founders aren't all consumed by their
industry product or service so the
notion of the passionate entrepreneur
makes a lot of good sense the second was
an obvious one profit Gates and Walton
wanted to make money thanks to some
savvy business sense and some pretty
good ideas as well we now know that they
ended up making a lot of it and don't
get me wrong I don't think that this is
a bad thing making money to support
oneself and in many cases provide for
his or her family has and will likely
always be an essential reason for
entrepreneurship so we have these two
key motivations that have driven
entrepreneurs for just a bit as long as
we can
but I guess a big part of why I'm here
speaking to you today has to do with my
belief that in this era at this specific
moment in history there's now a third
ingredient it's progressively being
added to the recipe for entrepreneurial
success that ingredient is what we call
purpose to me purpose has become the
third reason and will soon be the third
imperative why people should be starting
businesses now sure I say this because
of the increasing number of studies and
analyses on the subject but also because
I myself run a purpose-driven business
that is growing faster than I could have
ever imagined I discovered the concept
of purpose while I was still waiting in
the most traditional of waters in a
world where profit per partner was often
the only real way and to differentiate
between a strong law firm and a weaker
one but outside the walls of what had
become my normal I became aware of a
small movement of entrepreneurs and
executives who were thinking about
business differently than we had been
for the past hundred years or so that
movement was gaining speed I remember
feeling so inspired to learn for example
that Patagonia strived to use business
in their outdoor clothing business as a
means to solve some of society's
greatest environmental problems or that
Ben and Jerry's thought of itself as a
social justice company that serves ice
cream we're the founders behind these
companies such as these converge was in
their belief that purpose shouldn't be
the accessory to running a business but
rather that it should be
really--it's guys all night the more I
thought about it the more I realized
that in this day and age no one should
be starting a business without in
addition to a viable economic value
proposition that business having an
equally important proposition to move
our society forward that was a
philosophy that I could believe in that
was a philosophy that would give me the
courage to start a business of my own
and so once I realized that I knew I had
to be part of this paradigm shift but I
had to find a purpose-driven business
model of my own one that played to my
strengths so I knew that I had two
things going for me well apart from my
dashing good looks but hold the applause
one one I was a pretty good lawyer too
I felt convinced with the right idea I
could convince other talented
socially-conscious lawyers to join my
venture so I thought for weeks about how
I could get them contribute to
alleviating access to justice issues
while continuing to earn a decent living
and in doing so I realized that I had to
stop treating business crimes like one
species and less fortunate ones like
another in the end they were all just
clients who needed a good lawyer on
their side then I thought I wonder how
it would feel for a corporate client to
know that just by choosing a law firm in
particular they'd be helping a woman on
welfare or a non-profit they believed in
or a starving young entrepreneur gained
access to a lawyer what if I charged the
business clients and help the needy ones
for free that was my idea
in practice what we'd be doing was to
ditch the fancy offices and the
excessive executive compensation
basically we'd cut out in the
overabundance of luxury in order to
spend more of our revenue on social good
now not only did I think that this was
the right thing to do but I was
convinced that it would make us so
unique in our market that potential
clients wouldn't have a choice but to
take notice and so far I feel as though
betting on purpose was the best possible
move we could have made
our firm has grown from what was
initially just my co-founder Sophie and
I to a team of 12 legal professionals
today now not only do we have several
multinational corporations in our client
roster but to date we've also helped
free of charge just over 300 individuals
and organizations who without us
wouldn't have had access to a lawyer at
all
and see the thing is where I'm standing
we're just getting started
you see we find ourselves at a time in
history when we're experiencing the
greatest rates of change and innovation
the next 10 years will present a more
disruption than the past 50 years
combined get this since 2000 of the 500
fortune 500 companies 50% have
disappeared in the next 10 years another
40% will become extinct so what do we do
my answer is purpose beyond cutting
prices while still maintaining product
quality purpose may well be the only
remaining competitive advantage
available to business leaders looking to
find themselves on the winning side of
this disruption companies that integrate
purpose will give themselves the
opportunity to succeed businesses that
don't won't stand a fighting chance now
there are three main reasons for this
one purpose led brands are more
successful in acquiring and retaining
customers behavioral science tells us as
much people buy things that make them
feel good about themselves and people do
business with brands they trust the
authentic story of purpose behind my own
firm is helping us win customers every
day and is critical to us winning even
more say just last week when we were
pitching for a potential new file I knew
we were being considered because we had
the right team and our prices were fair
but I also knew this to be true of the
two other firms vying for the mandate so
why did we end up on top well purpose
our client told me that he was choosing
our firm because
it aligned best with the values of
social responsibility that they had
purpose helps businesses engage the best
employees there is a growing expectation
that the workplace become a place of
fulfillment satisfaction and personal
meaning about just providing a good
living so a mere nine months after we
launched my then startup law firm landed
one of the best lawyers in the country
Danielle a leading energy law expert
told me that she was choosing us
certainly not yet for the money but
rather for the opportunities that lied
in our innovative business model
opportunity's sure for client attraction
but opportunity perhaps even more so for
his own happiness
- Danielle our purpose-driven model was
about to disrupt one of the most
conservative industries out there and he
just had to be a part of it and let me
tell you the number of people who think
like Danielle is multiplying three
businesses that integrate purpose are
growing faster than traditional
companies and investors are taking
notice
in his 2018 annual letter to CEOs Larry
Fink the founder of Blackrock the
world's largest asset management firm
told the chief executives of the
companies in which Blackrock invests the
following to ensure prosperity every
company must not only deliver financial
performance but must also show how it
makes a positive contribution to society
now this year mr. Fink went a step
further stating that companies that
ignore purpose will simply stumble
and fail so take for example Unilever
where among its hundreds of brands those
which have integrated purpose directly
into their model such as dove helmets
and of course Ben and Jerry's are
growing 30% faster than the rest of
Unilever's brands so it's no wonder that
the most astute investors are taking
notice they've learned that there's no
longer a trade off to be made between
financial performance and social impact
rather they now know that these two
concepts must be intrinsically linked
for companies to succeed but I'll tell
you once the numbers were crunched once
the forecasts made sense what truly
became my own personal call to action
was this the world needs Purpose Driven
businesses it needs a lot of them and
more than ever it needs them now
it needs them because of people like
Mary when Mary needed legal services she
found herself being too poor to be able
to pay for a lawyer and yet too rich to
be eligible to governmental legal aid
and you know who was there to help Mary
a purpose-driven company hours Mary had
the good sense to Google pro bono lawyer
Montreal and she landed on our website
she filled out our application for free
legal services and within 48 hours had
proper representation as the story goes
a lawyer from our law firm responded to
Mary's eviction notice with a solid
statement of defense and won her battle
before the rental board now Mary's story
is just one among many whether it be in
assisting a sexual assault victim seek
justice or a non-profit recover
insurance money after a terrible flood
every day lawyers at our firm have the
opportunity to do good while earning a
good living but the social impact that
our firm provides is directly
proportional to our economic success the
more paying corporate clients retain our
lawyers the more these same lawyers can
help the most vulnerable individuals and
organizations of society so consider
this in 2017 the two largest law firms
in the world each generated just over 2
point 1 billion dollars in revenue our
firm by comparison will reach a million
dollars for the first time this year
while providing 3000 hours of free legal
services now I'm not saying that every
firm out there should be allocating 50
percent of its time to pro bono like we
do but just imagine if purpose was
placed at the core of the model of every
single law firm in the world how much
access to justice would increase how
many individuals and organizations would
still be lacking proper representation
not many if you ask me and this is why I
firmly believe that the greatest
opportunity to solve some of society's
biggest challenges lies in the hands of
businesses and perhaps even more so in
the minds of those who will create the
next innovative law firms and even the
next Microsoft's and Walmart's
perhaps one day social entrepreneurship
will simply become entrepreneurship but
it will take all of us as entrepreneurs
employees investors and even consumers
to continue taking a stand in what we
build where we work and how we spend our
money for that to become a reality now
I've said it before and I will say it
again
the world needs purpose driven
businesses and now you know that these
businesses aren't just surviving they're
thriving thank you
[Applause]
[Music]
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