Giving Compass' Take:
- Roy Dekel discusses the benefits of purpose-driven entrepreneurship, explaining how founders can embrace servant leadership to foster impact and build trust.
- How can founders build a focus on social impact and servant leadership into their organizations from day one?
- Learn more about best practices in philanthropy.
- Search our Guide to Good for nonprofits in your area.
What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
Philanthropy is more than just writing a check; it's about creating a lasting impact by serving others. For entrepreneurs engaging in purpose-driven entrepreneurship, integrating social good into the fabric of a business isn't just noble — it's a powerful way to build a sustainable company that resonates with employees, customers and communities alike.
During a conversation with Cheryl Sutterfield-Jones, CEO of Cars for Kids in Texas, I was struck by her insights on how leaders can make a difference beyond profit margins with purpose-driven entrepreneurship. Her stories offered valuable lessons on embedding purpose into business strategies, fostering trust and making an impact that transcends traditional business goals.
Founders Who Embrace Purpose-Driven Entrepreneurship
Purpose-driven entrepreneurship isn't a new concept. Several founders have woven philanthropy into their companies from the start:
- Blake Mycoskie (TOMS): Mycoskie pioneered the one-for-one giving model, donating a pair of shoes for every pair sold.
- Patagonia's Yvon Chouinard: Chouinard built Patagonia with environmental stewardship at its core, donating 1% of sales to environmental causes.
- Dan Price (Gravity Payments): Price made headlines by raising his employees' minimum salary to $70,000 while cutting his own pay.
- Scott Harrison (charity: water): Harrison founded charity: water to provide clean water access worldwide, with a model of complete donation transparency.
These founders didn't just focus on building successful companies — they made giving back a core part of their missions, centering purpose-driven entrepreneurship. Their stories show that doing good can be deeply integrated into business operations.
The Power of Servant Leadership in Business
Cheryl's journey into servant leadership and purpose-driven entrepreneurship began early in her career. "I knew I wanted to help others when I was a young girl," she shared. "While attending a conference, I was introduced to Robert Greenleaf's philosophy of the Servant as a Leader. I realized my personal goals of listening, humility, coaching, empathy and empowering my teams aligned with servant leadership."
This philosophy isn't just relevant to nonprofits or large organizations; it holds significant value for entrepreneurs starting new ventures. Founders often wear multiple hats and face immense pressure to deliver results. By adopting a servant leadership mindset, they can create a culture of trust, collaboration and empowerment from day one.
Read the full article about purpose-driven entrepreneurship by Roy Dekel at Entrepreneur.