{"id":3782,"date":"2025-04-02T18:47:47","date_gmt":"2025-04-02T18:47:47","guid":{"rendered":"https:\/\/aomtodayprod.wpenginepowered.com\/?p=3782"},"modified":"2025-07-09T15:14:25","modified_gmt":"2025-07-09T15:14:25","slug":"prioritizing-social-missions-can-boost-profits","status":"publish","type":"post","link":"https:\/\/www.aom.org\/today\/prioritizing-social-missions-can-boost-profits\/","title":{"rendered":"Prioritizing Social Missions Can Boost Profits"},"content":{"rendered":"

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

Social enterprises, companies started to achieve profits through social and environmental goals, offer companies an incubator in complex decision-making.<\/p>\n

Corporate leaders experience ongoing tensions between the financial and social\/environmental goals, framing these opposing pressures as an ongoing trade off. But Academy of Management Scholar Wendy Smith<\/a> of the University of Delaware noted that such tradeoffs are \u201climited at best and detrimental at worst.\u201d Her research on social enterprises offers an alternative. Leaders can draw on these tensions to enable strategic novelty, complexity, and creativity.<\/p>\n

For example, Smith studied Digital Divide Data (DDD), a high-tech digitization company that seeks to stop the cycle of poverty through jobs and training. With offices in Cambodia, Laos, and Kenya, as well as across the United States, this successful 25-year-old company has improved the lives of more than 7,000 people.<\/p>\n

\u201cDDD continues to be a model social enterprise achieving a social mission through business means. They hire people from the most disadvantaged backgrounds, train them, provide them with jobs and enable them to earn multiple times the national average,\u201d Smith said. \u201cWhen DDD started, they were so committed to their social mission that they almost went financially bankrupt.<\/p>\n

\u201cTheir board of directors helped to bring them back; directors included people who had a real financial background as well as people with a development-aid background, so that they could lean into both and make sure they weren’t going too far out of bounds,\u201d she said. \u201cSome organizations err in saying, \u2018We\u2019re so committed to the social mission that we have no money,\u2019 while others say, \u2018We\u2019re so committed to the financial bottom line that we\u2019re not achieving our mission or we’re not helping enough people and making the positive social impact that we want to.\u2019 Over time DDD learned to avoid that either\/or trap.<\/p>\n

\u201c[Cofounder and CEO] Jeremy Hockenstein reframed their core strategic questions. Instead of asking whether they should focus on the social mission or the bottom line, they asked how they could achieve both goals.\u201d<\/p>\n

Doing so did require making difficult decisions. However, Smith notes that these decisions are micro-oscillations or what she calls being consistently inconsistent. Leaders make a commitment to achieve multiple, competing goals over time, yet make small tweaks to how they allocate their resources and organize their team.<\/p>\n

For example, as Smith described, DDD leadership team would sometimes make decisions that were benefit their social mission, and sometimes making decisions that would benefit their financial bottom line, but they weren\u2019t overextending to one extreme to the point that they would completely lose sight of the other.<\/p>\n

\u201cSuch oscillating decision-making is like walking a tightrope,\u201d Smith said. \u201cThe tightrope-walker is never fully balanced but rather constantly making small tweaks to balance over time.<\/p>\n

\u201cHowever, they are not falling too far to either side that they fall off the tightrope,\u201d she said.<\/p>\n

To avoid making decisions that went too far in either direction, Smith\u2019s research found that DDD held clear guardrails. They had roles, goals, and external stakeholder relationships that ensured that they did not get too focused on either the bottom line or the social mission to the detriment of the other. DDD\u2019s leadership practices offer insights for corporate leaders to navigate complex, competing strategies in their businesses.<\/p>\n

\u201cDDD leaders made strategic decisions, but with clear guardrails or boundaries so that they didn\u2019t go too far out of bounds,\u201d Smith said. \u201cHaving these guardrails in place help them to keep on track with both their social mission and their business goals to enable this kind of ongoing experimentation and change that they needed to be able to be paradoxical in their thinking\u2014lean away from either\/or decision making and into the both\/and mindset.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

By Daniel Butcher Social enterprises, companies started to achieve profits through social and environmental goals, offer companies an incubator in complex decision-making. Corporate leaders experience ongoing tensions between the financial and social\/environmental goals, framing these opposing pressures as an ongoing trade off. But Academy of Management Scholar Wendy Smith of the University of Delaware noted […]<\/p>\n","protected":false},"author":4,"featured_media":4327,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26,44,76],"tags":[],"sp_smart_badges":[],"ppma_author":[70],"class_list":["post-3782","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-social-responsibility","category-motivation","category-performance"],"acf":[],"yoast_head":"\nPrioritizing Social Missions Can Boost Profits - 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\/prioritizing-social-missions-can-boost-profits\/\" \/>\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=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/prioritizing-social-missions-can-boost-profits\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/prioritizing-social-missions-can-boost-profits\\\/\"},\"author\":{\"name\":\"Daniel Butcher\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#\\\/schema\\\/person\\\/d1297a59039d9ca7bac9d9f0952e508c\"},\"headline\":\"Prioritizing Social Missions Can Boost Profits\",\"datePublished\":\"2025-04-02T18:47:47+00:00\",\"dateModified\":\"2025-07-09T15:14:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/prioritizing-social-missions-can-boost-profits\\\/\"},\"wordCount\":633,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/prioritizing-social-missions-can-boost-profits\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aom.org\\\/today\\\/wp-content\\\/uploads\\\/2025\\\/04\\\/csr-clouds.jpg\",\"articleSection\":[\"CORPORATE SOCIAL RESPONSIBILITY\",\"MOTIVATION\",\"PERFORMANCE\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.aom.org\\\/today\\\/prioritizing-social-missions-can-boost-profits\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/prioritizing-social-missions-can-boost-profits\\\/\",\"url\":\"https:\\\/\\\/www.aom.org\\\/today\\\/prioritizing-social-missions-can-boost-profits\\\/\",\"name\":\"Prioritizing Social Missions Can Boost Profits - 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You can reach him at dbutcher@aom.org or via LinkedIn.","sameAs":["https:\/\/aomtodayprod.wpenginepowered.com","https:\/\/www.linkedin.com\/in\/danielbutcher\/"],"url":"https:\/\/www.aom.org\/today\/author\/daniel-butcher\/"}]}},"authors":[{"term_id":70,"user_id":4,"is_guest":0,"slug":"daniel-butcher","display_name":"Daniel Butcher","avatar_url":{"url":"https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/01\/DanButcher_Academy-of-Management.webp","url2x":"https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/01\/DanButcher_Academy-of-Management.webp"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"rttpg_featured_image_url":{"full":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/csr-clouds.jpg",1000,667,false],"landscape":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/csr-clouds.jpg",1000,667,false],"portraits":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/csr-clouds.jpg",1000,667,false],"thumbnail":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/csr-clouds-150x150.jpg",150,150,true],"medium":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/csr-clouds-300x200.jpg",300,200,true],"large":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/csr-clouds.jpg",800,534,false],"1536x1536":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/csr-clouds.jpg",1000,667,false],"2048x2048":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/csr-clouds.jpg",1000,667,false],"owl_elementor_thumbnail":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/csr-clouds-600x400.jpg",600,400,true],"owl_elementor_team":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/csr-clouds-350x450.jpg",350,450,true],"owl_elementor_testimonial":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/csr-clouds-100x100.jpg",100,100,true]},"rttpg_author":{"display_name":"Daniel Butcher","author_link":"https:\/\/www.aom.org\/today\/author\/daniel-butcher\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/www.aom.org\/today\/category\/corporate-social-responsibility\/\" rel=\"category tag\">CORPORATE SOCIAL RESPONSIBILITY<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/motivation\/\" rel=\"category tag\">MOTIVATION<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/performance\/\" rel=\"category tag\">PERFORMANCE<\/a>","rttpg_excerpt":"By Daniel Butcher Social enterprises, companies started to achieve profits through social and environmental goals, offer companies an incubator in complex decision-making. 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