So thinking about stakeholders, forms the basis for how we really can understand the role of business in society. But that's not the whole thing, purpose actually turns out to be really important. Thinking about stakeholders without thinking about purpose, well you can't even answer the question, who are your stakeholders? If you don't think about purpose. Who your stakeholders are, depends in part, on what you're trying to do. So, let's think about, for a few minutes,what's a good purpose for a company? And you can apply this to your own lives. One way to think about purpose, is that, it's an answer to a question of why. And for instance I might ask you if we ever meet why did you take this course? And you might say, well I wanted to learn something. I'd say, well why do you want to learn something? Well I might want to get a better job? Well why do you want to get a better job? cause I want to, you know do better for my family. Well why do you want to do that? And eventually we'll come to something you just can't answer anymore. An end to the string of why questions. When we get to that Will say, we've got a purpose. Like if part of my purpose is to, inspire students. Well, why do I want to do that? Well, I just do. That's sort of who I am and why I want to, and, and why I live the way I do. It's about our identity, and purpose is like that. Many companies have identities. They have an answer to a why question. They put a stake in the ground and said this is who we are. This is what makes us distinct, it sets us apart. It's how it gives the driving force. The wellspring for how we manage our stakeholder relationships. How we create value for our stakeholders. It makes us ask and answer why our business matters. There's really an excellent recent book by Harvard Business School Professor Cynthia Montgomery, called The Strategist. And in that book She suggests also what a good purpose is not. She says a good purpose isn't something that's well I'll just read you what she says. We'll provide branded products and services of superior quality and value that'll improve the lives of the worlds consumers now and for generations to come. As a result, consumer's who reward us with leadership sales, profit value, creation [UNKNOWN] people are shareholders communities which we live to work and to prosper. That's just generic, it doesn't, it's not distinct. It doesn't inspire anybody, and if a good purpose is anything, it is inspiring certainly to you. Sometimes companies have purposes like the best, I'm going to be the best in my industry, specializing in satisfied customers. Well, that's just something you have to do, it's not inspiring. It's not an answer to a why question. It doesn't set you apart, it's purpose. That's a part of this new model of business in society, not profits. Think about Southwest Airlines, dedication to the highest quality of customer service with warmth, friendliness, individual pride in company spirit. If you've ever flown it, you know that's real. Or Nike, Nike's purpose to bring inspiration and innovation to every athlete in the world. Or a company I especially like and been privileged to sit down and talk with Novo Nordisk, a company in Den, Den, Denmark. Their purpose is very simple, they want to rid the world of diabetes or BMW. German Company, the only manufacturer of automobiles and motorcycles worldwide that concentrates entirely on premium standards and quality. Or think about Microsoft, Microsoft wants to help people and businesses realize their potential. But it's not just businesses, but National Audobon Society says, we're going to reconserve and restore natural ecosystem. Focusing on birds and other wildlifes, their habitats for the benefit of humanity in earth biological diversity. Could go back to something we talked about last week or Starbuck's coffee. Again you can like these companies or not like them, doesn't matter. They're purpose driven, to inspire and nurture the human spirit one person, one cop, one neighborhood at a time. Now, sometimes people don't fulfill their purposes. Sometimes I don't inspire my students very much. But it doesn't mean because sometimes we fail, that purpose isn't important. In fact it's the most important thing that we can do. To think about what our purpose is and to think about how what we do realizes that. Whether, your company like AstraZeneca are worried about making a meaningful difference in, to their patient's health and adding value for stakeholders in society. Or if your Kenyan air, air, air, Airlines, an African company that tries to maximize stakeholder value. By providing, the highest level of customer satisfaction, safety, and security. And be committed to corporate and social responsibility. Purpose, is incredibly important. If we're really going to make business better, it's because we're going to realize That it's purpose, not profit. What I'd like you to think about as an engagement question and talk about it in your discussion forums, is to think about organizations that you know. Think about organizations where you're a member. What's the purpose? That, does it inspire people? What's the why question that it answers? Does, does it make the organization distinctive? And also think about organizations that may not be very purpose driven. What are some of the issues, that those organizations have.
