Innovation and altruism: a new paradigm defining the survival of corporations?

In 1920, Henry Ford claimed that "the company must make a profit, or it will die. However, if you try to run a business solely on profit, then it will also die because it will no longer have a purpose". A century later, his statement remains strikingly relevant. In this chapter, we highlight the urgency for firms to rethink their corporate strategy and redefine their position within society in a larger context. We summarize how our understanding of performance has evolved from a purely financial standpoint towards global performance, emphasizing corporate social responsibility. However, current evolutions, intensified by the 2019–2020 coronavirus disease (COVID-19) pandemic, reveal that this is no longer enough in an increasingly complex and uncertain environment. Firms must innovate, reinvent themselves to survive, and thus need highly motivated, fully committed employees. Thus, we argue that firms should refocus on their fundamental raison d'être. In a short overview, we refer here to the concept of "purpose", which has far broader implications than merely relying on a commitment to society or a tangible financial outcome. We ultimately argue that actions count more than words. Only by exhibiting truly altruistic behavior, shaping its organizational purpose, will a firm be able to offer an organizational setting in which employees feel comfortable innovating and thus provide offerings that meet society's actual needs and interests. In the process, we reflect on what the firm of tomorrow should look like. Open image in new window Green Idea's Machina by Flora.