Giving Compass' Take:

• As companies are focusing more on their social responsibility missions, there is more room now for collaboration across all industries. The role of charities will evolve instead of disappear, and purpose-led companies will be able to fill in the gaps.

• What are some examples of collaboration between the different sectors?

• Read about the new era of corporate social responsibility.

Sustainable, meaningful, purpose-led. However framed, when applied to organizations, these terms indicate to wider society that a company is committed to making a difference. Evidence proves that purpose-led organizations are no longer a buzz word; they are fast becoming the norm because they can prove that they add real value to employees, shareholders and customers. And it’s nothing new.

The growing workforce of millennials–and generation Z following fast on their heels–wants to work for companies that share their values around responsibility to mankind and the planet. Companies, therefore, have to fight for the best talent by transforming to a purpose-led business or risk losing the skills they need.

As others in the financial world follow, all sizes of business across the world will have no choice but to understand the value of being purpose-led, deciding and then designing their own meaningful path.Where does this leave charities? Does it make them redundant? No. In the words of John Low, chief executive of Charities Aid Foundation, “Almost everyone . . . benefits from the work of a charity, and the demand for their services and support shows no sign of abating.”

“Purposeful” businesses will succeed most where profit and purpose align. We need them to create profit that allows society to prosper and for more good work to be done. The demand for the many services and support gaps that the charity sector fills now will continue in years to come.

We can only create the world we want for the future through collaboration with others. Where civil society, governments, companies, and charities all come together, we make the most progress. So the opportunity for charities is to look for long-term goals for society and work out what is best positioned to help achieve them.

Read the full article about the role of charities by Kate Adams at Fast Company