Prioritizing people and the planet, not just profits, is always good business.
One of my most important personal and business mentors, Jonathan Wygant, used to share with me, “May whatever happens be for the highest good of all concerned.” When I first heard this, I was a teenager fresh off the streets, and I either rolled my eyes or, sadly, sneered when he said it. Later, as an adult, I was surprised to learn he was right. Also, according to Jonathan, Paul Hawken, and other notable folks such as Bill McKibben, prioritizing people and the planet, not just profits, is always good for everyone. Plus, it’s good business. It’s another case of doing well by doing good.
Studies bear this out. According to research by Just Capital, the top-performing ethical companies typically outperform the Russell 1000 index by several percentage points. Likewise, consumers love to support businesses that do good. When given a choice between two products or services of the same price, consumers would rather support the business that prioritizes good. For example, people love Ben & Jerry’s ice cream, which donates 7.5 percent of its pretax profits to philanthropic initiatives. And customers can’t get enough of Ikea furniture, which uses sustainable cotton, wool, and wood in its products.
As a talent agent, attorney, law professor, and seasoned entrepreneur, I’m passionate about dealmaking and doing the right thing. I also teach an &Then masterclass on dealmaking in collaboration with MadeCraft Studios and Cornerstone, along with a LinkedIn course on business ethics and another course on influencer marketing and legal considerations. Each of these courses features ethical and doing-good considerations.
What is the highest good for all concerned?
Before we get into what you could do, let’s understand what the “highest good of all concerned” mean. For a business, the highest good means a multi-win deal for all stakeholders. A stakeholder is anyone who has a stake in the outcome. So a good deal is where you, the other party, and anyone affected by the deal come out winning.
For example, Starbucks knows and practices this very well. They offer a deal to discount your coffee when you use your own mug. This is a multi-win deal because it benefits Starbucks by reducing overhead for cups, you by paying less for coffee, and the environment by reducing waste.
As for the “all concerned,” that means all the primary and secondary stakeholders of your deal. In a traditional business deal, your primary stakeholders are the people in the room and the people who are directly impacted by the deal (i.e., investors, board members, customers, execs, employees, vendors, and those people who will have first-hand knowledge and some choice in the deal).
Secondary stakeholders are all the people, places, or things (like animals) that are impacted by the deal’s outcome. For example, when you consider the impact of a new factory on the town and its surrounding lands. Or the kids who play in the river two towns down if the factory is pouring chemicals in the river (please don’t do this!). Knowing all this, how can you achieve the highest good for all concerned? Do two things.
Find a cause.
One great way to do the highest good for all concerned is to find a cause you and your business believe in. Some businesses align themselves with social entrepreneurs who are already making a positive impact. For example, Jane Chen invented and distributed a low-cost infant warmer that gives premature and low-birth-weight babies a better chance at survival. Another example of doing good is Andrew Bastawrous, the co-founder of Peek Vision. He utilized smartphone technology to provide eye-care access for hundreds of thousands of people who would otherwise be unable to receive it.
Other businesses do things like ethically source their supply chains, build houses for the homeless, or donate to One Percent for the Planet. In our company, we pursue environmental causes and invest in employee well-being. We have done things like reducing plastic waste in our daily business and donating some of our profits to planting trees and carbon offsets. We also support our employees pursuing their own causes, like cleaning the local beaches in Santa Barbara, California or investing in their physical and mental health.
The result for our company is a happier business that gives back to the environment.
Look for the multi-win.
Another way our business tries to do the highest good is by looking for the multi-win in business deals. For instance, we pioneered a system in the entertainment and keynote speaking industry for sharing exclusive talent with other agencies.
When another agency wants to book one of our exclusive talents, we allow the competing agency to take the majority of the commission, and we only request a small percentage. That way, the talent gets a job, our company makes money, the so-called rival will want to book more of our talent, and the brand or conference gets their desired talent. It creates goodwill that has helped our company keep an NPS score in the high 80s for years.
Intentionally doing good might seem to cost more time and money in the short term. However, in the long term, if you find a cause and go for the multi-win, you will always profit personally and professionally.