{"id":3750,"date":"2025-04-02T20:15:12","date_gmt":"2025-04-02T20:15:12","guid":{"rendered":"https:\/\/aomtodayprod.wpenginepowered.com\/?p=3750"},"modified":"2025-07-09T15:14:45","modified_gmt":"2025-07-09T15:14:45","slug":"profits-and-social-responsibility-can-go-hand-in-hand","status":"publish","type":"post","link":"https:\/\/www.aom.org\/today\/profits-and-social-responsibility-can-go-hand-in-hand\/","title":{"rendered":"Profits and Social Responsibility Can Go Hand in Hand"},"content":{"rendered":"

By Daniel Butcher<\/a><\/p>\n

Current business leaders aren\u2019t only tasked with maximizing shareholder value; they must balance competing priorities, including setting and meeting environmental, social, and governance objectives. Long-term organizational sustainability requires maintaining profitability while maximizing the organization\u2019s positive social and environmental impact and minimizing negative effects. Navigating these tensions entails overcoming various leadership challenges.<\/p>\n

For example, Academy of Management Scholar Wendy Smith<\/a> of the University of Delaware said that Paul Polman, the former CEO of British-Dutch consumer packaged goods company Unilever, is remembered for establishing the company\u2019s Sustainable Living Plan, which had a set of goals committed to health and well-being, enhanced livelihoods, the environment, social value.<\/p>\n

\u201cPolman pulled Unilever out of a death spiral and set it on the path of being the top packaged goods company,\u201d Smith said. \u201cImportantly, he doubled profits and ensured success not in spite of, but rather because of a commitment to addressing environmental and societal demands.<\/p>\n

\u201cIn an interview we conducted with Polman, he noted that tensions between profits and social missions emerged all the time,\u201d she said.<\/p>\n

Unilever\u2019s leadership grappled with questions such as whether to create consumer packaged goods products that were in bigger containers to minimize plastic and waste or smaller containers to increase the margins on each item sold. For Unilever, that question introduced an innovation opportunity: Could they rethink packaging to enable them to sell goods with less environmental impact?<\/p>\n

\u201cThese kinds of tensions come up all the time,\u201d Smith said. \u201cEffective leadership depends on evaluating these tensions and applying a more holistic both\/and approach to come up with more effective solutions.<\/p>\n

\u201cDoing so depends on building leadership competencies for both\/and thinking, where teams can have difficult conversations that value and engage opposing perspectives and seek new insights,\u201d she said.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Daniel Butcher Current business leaders aren\u2019t only tasked with maximizing shareholder value; they must balance competing priorities, including setting and meeting environmental, social, and governance objectives. Long-term organizational sustainability requires maintaining profitability while maximizing the organization\u2019s positive social and environmental impact and minimizing negative effects. Navigating these tensions entails overcoming various leadership challenges. For […]<\/p>\n","protected":false},"author":4,"featured_media":4355,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26,72,21,19],"tags":[],"sp_smart_badges":[],"ppma_author":[70],"class_list":["post-3750","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-social-responsibility","category-ethics","category-innovation","category-leadership"],"acf":[],"yoast_head":"\nProfits and Social Responsibility Can Go Hand in Hand - Academy of Management Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aom.org\/today\/profits-and-social-responsibility-can-go-hand-in-hand\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Daniel Butcher\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/profits-and-social-responsibility-can-go-hand-in-hand\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/profits-and-social-responsibility-can-go-hand-in-hand\\\/\"},\"author\":{\"name\":\"Daniel Butcher\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#\\\/schema\\\/person\\\/d1297a59039d9ca7bac9d9f0952e508c\"},\"headline\":\"Profits and Social Responsibility Can Go Hand in Hand\",\"datePublished\":\"2025-04-02T20:15:12+00:00\",\"dateModified\":\"2025-07-09T15:14:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/profits-and-social-responsibility-can-go-hand-in-hand\\\/\"},\"wordCount\":307,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/profits-and-social-responsibility-can-go-hand-in-hand\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aom.org\\\/today\\\/wp-content\\\/uploads\\\/2025\\\/04\\\/Unilever_profits-and-social-responsibility_shutterstock_1466949611-scaled.jpg\",\"articleSection\":[\"CORPORATE SOCIAL RESPONSIBILITY\",\"ETHICS\",\"INNOVATION\",\"LEADERSHIP\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.aom.org\\\/today\\\/profits-and-social-responsibility-can-go-hand-in-hand\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/profits-and-social-responsibility-can-go-hand-in-hand\\\/\",\"url\":\"https:\\\/\\\/www.aom.org\\\/today\\\/profits-and-social-responsibility-can-go-hand-in-hand\\\/\",\"name\":\"Profits and Social Responsibility Can Go Hand in Hand - 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Long-term organizational sustainability requires maintaining profitability while maximizing the organization\u2019s positive social and environmental impact and minimizing negative effects. Navigating these tensions entails overcoming various leadership challenges. For…","_links":{"self":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/3750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/comments?post=3750"}],"version-history":[{"count":0,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/3750\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media\/4355"}],"wp:attachment":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media?parent=3750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/categories?post=3750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/tags?post=3750"},{"taxonomy":"sp_smart_badges","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/sp_smart_badges?post=3750"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/ppma_author?post=3750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}