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The Power of Purpose in Business | David Bechtold | TEDxMSUDenver
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The Power of Purpose in Business | David Bechtold | TEDxMSUDenver

What is the Purpose of Business and Life?

Introduction to Purpose

  • The speaker, a professor at MSU Denver's College of Business, begins by questioning students about the purpose of business and life, highlighting a common struggle in finding alignment between the two.

The Traditional View on Business

  • The prevalent belief regarding business is that its primary purpose is to make money. This narrow focus poses challenges when trying to align business with life's broader purposes.

Shift in Corporate Perspectives

  • In August 2019, the Business Roundtable issued a statement emphasizing that stakeholders should be prioritized equally with shareholders in corporate strategy. Some CEOs advocate for purpose-driven pursuits over short-term profits.

Misconceptions About Corporate Social Responsibility (CSR)

  • Critics argue that focusing on purpose may resemble CSR efforts, which could detract from business focus. However, this perspective is challenged by evidence showing that businesses can thrive through purposeful engagement.

Millennial Insights on Purpose

  • A survey indicates that 80% of Millennials consider purpose when deciding where to work or shop. This suggests that aligning with community values strengthens companies rather than weakening them.

The Concept of Audacious Purpose

Definition and Impact

  • Companies with an audacious purpose not only become stronger but can also create transformational power within their communities.

Case Study: Blue Star Recyclers

  • Blue Star Recyclers exemplifies an audacious purpose by recycling old computers while providing meaningful employment for individuals with autism spectrum disorder. This mission was discovered rather than planned.

Challenges Faced by Blue Star Recyclers

Initial Discoveries and Adaptations

  • Founder Bill Moore recognized the unique skills of individuals with autism during his time at a day facility for people with disabilities, leading him to establish Blue Star Recyclers in 2009 after observing their talent in dismantling computers.

Transitioning to Nonprofit Status

  • Facing financial difficulties early on, Blue Star transitioned to a nonprofit model in 2011, allowing them access to donations and grants essential for survival.

Resilience Through Purpose

Navigating Financial Crises

  • In 2015, after a market crash threatened their existence again, Bill resisted raising rates initially but ultimately did so out of necessity. Surprisingly, customers responded positively instead of leaving.

Value Creation Through Purpose

  • Bill realized that having a clear purpose creates value that markets will reward; customers were eager to support the mission despite increased costs.

Work Environment at Blue Star

Employee Metrics and Culture

  • At Blue Star Recyclers:
  • Productivity stands at 90%, compared to an industry average of 50%.
  • Employee turnover is zero versus an industry average of six to eight times.
  • Employees rarely call in sick unless genuinely ill.

This highlights how a strong sense of purpose fosters dedication and commitment among employees.

The Transformational Purpose of Business

The Experience of Working at Blue Star

  • Working at Blue Star provides a meaningful reason to wake up each day, emphasizing hard work alongside supportive colleagues and the recognition for achievements.
  • The impact of Blue Star extends beyond individuals with disabilities; it transforms the entire workforce by fostering an inclusive community that values diverse employee profiles.

The Purpose of Business

  • Businesses should aim to be transformational, influencing not just employees but also customers and communities. This requires a shift in mindset towards operationalizing transformative goals.
  • Drawing inspiration from Robert Kennedy's vision, businesses must dream big and ask critical questions about how to achieve their aspirations and timelines for implementation.

Future Aspirations for Blue Star

  • A significant transformation is anticipated for Blue Star as it aims to become a B Corporation with employee ownership, transitioning from "unemployable" individuals to empowered owners.

Reimagining Business Norms

  • Envisioning a future where businesses like Blue Star are the norm rather than outliers encourages alignment between purpose in business and life, enhancing feelings of fulfillment among workers, supervisors, customers, and neighbors.
  • The call to action is clear: we don't need to merely imagine this ideal business; we can actively reimagine what it looks like in practice.
Video description

Markets have begun to expect more from businesses than just a singular pursuit of money. Companies are expected to consider all stakeholders in their business endeavors and in doing so have begun to re-imagine what their business purpose should be. Some companies go beyond considering only those stakeholders that are directly impacted by the company and instead pursue purpose that is audacious in its scope and service to others. Blue Star Recyclers is a company with an audacious purpose, providing meaningful work for people with autism. Their audacious purpose has transformed the company, its customers, and the communities they serve. In an industry with few small business success stories Blue Star has not only survived but has thrived. Companies like Blue Star Recyclers have re-imagined what the purpose of business should be and the power and success that comes to any company that looks beyond making money. David Bechtold is an Associate Professor of Management in the College of Business at MSU-Denver. His areas of expertise include Sustainability and Strategic Management. Dr. Bechtold business experience includes owning a management consulting firm and a real estate development company. He also was part of the development team for a community re-entry program serving adults with traumatic brain injury as well as the business director for a medical research facility. In the summer of 2019 Dr. Bechtold was elected to serve on the Board of Directors for Blue Star Recyclers. Blue Star Recyclers is a 501(c)3 Colorado based company whose purpose is to provide meaningful employment to people who have a developmental disability, particularly individuals who have autism spectrum disorder. This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at https://www.ted.com/tedx