Why purpose-driven companies are thriving (and can change the world) | Ryan Hillier | TEDxMontreal

Summary

The 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

00:00

🏡 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.

05:01

💼 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.

10:02

🌟 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.

15:05

🚀 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.

20:06

🌐 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.

Keywords

💡single parent

A single parent is a person who raises a child or children without the help of a partner. In the video, the protagonist is a single parent juggling two jobs and responsibilities, which illustrates the challenges faced by single parents in balancing work and family life.

💡eviction

Eviction refers to the legal process of removing a tenant from rental property. The video script mentions the protagonist being served an eviction notice, which is a pivotal moment highlighting the precariousness of housing for some individuals.

💡pro bono

Pro bono work is professional work undertaken voluntarily and without payment as a public service. The video discusses the concept of providing legal services pro bono to those who cannot afford them, emphasizing the importance of social responsibility in the legal profession.

💡inequality gap

The inequality gap refers to the disparity between the rich and the poor. The video's speaker mentions their initial goal to reduce this gap, indicating a broader societal issue that purpose-driven businesses aim to address.

💡entrepreneurship

Entrepreneurship is the process of designing, launching, and running a new business. The speaker reflects on their entrepreneurial journey, highlighting the evolution from traditional profit-driven models to purpose-driven businesses.

💡purpose-driven business

A purpose-driven business is one that追求 a social or environmental goal alongside profit. The video's central theme revolves around the concept of starting businesses with a dual focus on economic success and social impact.

💡access to justice

Access to justice refers to the ability of individuals to seek and obtain their rights and protections under the law. The video discusses how the law firm's model helps increase access to justice for those who cannot afford legal services.

💡disruption

Disruption in a business context refers to innovations that radically change existing markets or industries. The video suggests that purpose-driven businesses are poised to disrupt traditional industries by integrating social goals into their core operations.

💡social entrepreneurship

Social entrepreneurship involves starting businesses or ventures with the primary goal of addressing social issues. The video speaker's journey from a conventional lawyer to a social entrepreneur exemplifies this concept.

💡one-for-one model

The one-for-one model is a business approach where a company provides one free product or service to someone in need for every one it sells. The video describes the law firm's innovative application of this model to legal services.

💡corporate social responsibility (CSR)

CSR refers to a company's commitment to operate in an ethical and sustainable manner, contributing positively to society. The video implies that integrating CSR into business models is becoming increasingly important for success.

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]