More to a business than caring for the bottom-line

What do you consider to be the most important lesson that you and the Virgin team have learnt from customer feedback this year? Chris Boyd New York

At Virgin, we know that the best way to drive positive change is to learn from our mistakes and hear what our customers have to say. Our companies thrive off customer feedback. It helps us to innovate and disrupt, and keeps us relevant.

Likewise, employee engagement is very important to us. Those working with our products and services on the frontlines are often best placed to make improvements and come up with solutions. Innovation isn’t just reserved for leaders or so-called creatives — it’s for everyone.

Over the past few years, we’ve noticed that feedback from our customers and employees has returned again and again to the same theme: the importance of purpose. Our customers want to know what we are doing to build a better world, and our employees want to feel that they are contributing to that better world through their jobs.

It has always been my objective to create businesses with a defined purpose beyond just making money. At the age of 15, I started Student magazine to campaign against the Vietnam War and mobilise the opinions of a younger generation concerned about the world. Almost 50 years later, Virgin’s recent investment in OneWeb is a continuation of my focus on purpose-driven businesses. OneWeb aims to create the world’s largest constellation of satellites in order to bring web access to the billions who don’t have it.

Each and every one of our companies has a defined purpose, but the truth is that we haven’t always made that clear to the public. That’s changing. These days we’re working hard to communicate effectively about where we do business, where we invest and how we are using our influence to be a force for good in the world — beyond just making profits for our shareholders.

In a nutshell, we believe in protecting the planet, advancing equality of opportunity and ensuring that all people are treated with dignity and respect.

Our Virgin companies in Australia have collectively taken a stance in support of marriage equality. DS Virgin Racing is bringing our message in support of climate action to cities around the globe. And all of our airlines are working to decrease their carbon footprints and increase their sustainability.

Virgin Holidays and Virgin Unite are committed to preserving the health of the ocean and its species. Virgin Trains is leading a bold initiative to employ and rehabilitate ex-offenders.

Our businesses have become platforms for change. And we’ve been fortunate enough to partner with other passionate, committed people as colleagues in these endeavours, helping us to improve the world on an even bigger scale.

For example, we’re working with the B Team — a notfor-profit founded by myself and other business leaders — to make sure Virgin’s businesses are “100 per cent Human” and “Born B”. The idea of the 100 per cent Human campaign is to move away from maximising profits and profitability to focus on how we can help people to achieve their highest potential while driving positive change in the world.

Businesses that treat their people as human beings, not just resources, naturally improve their bottom-line.

Meanwhile, the Born B movement sees the business community as a powerful driver of innovation, creativity and global change. New companies have the opportunity to manage their businesses in ways that serve people and the planet from the very start, rather than waiting until they become giant corporations to do so. Companies that start early gain a competitive advantage by attracting customers, investors and top talent, and improve their ability to address global challenges.

Purpose-driven companies can make a positive difference in the lives of their employees, their communities and the world. But that’s only half the story. These companies also function better. Why? Their employees are happier.

We’ve found that many Virgin businesses have significantly higher rates of employee engagement and retention than is typical of their industries. In fact, research from Harvard University has shown that companies that have a “higher purpose” are more than three times as likely to retain their employees. And keeping a great team together is key to business success.

Being purpose-driven also helps to align your business with your customers. A recent survey from the marketing firm Edelman found that global consumers believe businesses should put at least as much emphasis on social interests as on business ones. That’s why, acting on feedback from our customers and employees, we’re being more outspoken this year about the purpose of our businesses. And this makes perfect business sense: Companies that strive to do more than simply making money — to put their business in the service of society and the environment — tend to attract the best employees, have more loyal customers and enjoy a better reputation.