For the past 50 years, business has largely operated under a single guiding principle: maximise shareholder returns. This doctrine can be traced back to a 1970 article in The New York Times by Nobel Prize–winning economist Milton Friedman, who argued that any use of shareholders’ money beyond profit maximisation was irresponsible.
That idea reshaped capitalism.
It also shaped the world we now find ourselves in: accelerating climate change, widespread environmental destruction, depleted natural resources, catastrophic pollution, overpopulation, and deepening inequality. Against this backdrop, the idea that business should play a broader role in society — that it should be a force for good — feels not radical, but obvious.
And yet, many business leaders still resist it.
Why purpose makes executives nervous
In too many boardrooms, business is still seen as a purely financial game. “Purpose” is viewed with suspicion — a feel-good distraction that gets in the way of making money. It’s perceived as something soft, expensive, and risky. Something that threatens the most sacred of all corporate metrics: the profit number.
That number has become the ultimate measure of success. Careers rise and fall on it. Bonuses depend on it. Reputations are built around it. So when leaders hear the word “purpose,” they instinctively translate it as: this is going to make my life harder and my targets harder to hit.
This assumption is not just outdated. It’s wrong.
The problem is not purpose — it’s mindset
In The Infinite Game, Simon Sinek draws a powerful distinction between leaders with a finite mindset and those with an infinite one. Finite thinkers focus on winning — on quarterly targets, competitors, rankings, and short-term gains. Infinite thinkers focus on endurance. They play to stay in the game.
Business, Sinek argues, is the ultimate infinite game. There is no finish line. No final winner. No permanent “best company.” Financial reporting periods are merely checkpoints, not endpoints. Yet most organisations behave as if the game ends every quarter.
To succeed in the infinite game of business, Sinek suggests, leaders must stop obsessing over who’s winning and start asking a more difficult question: How do we build an organisation strong and healthy enough to last for generations?
What truly defines a strong business
Businesses that play the long game are not defined by quarterly earnings calls or short-term share price movements. They are defined by a clear and deeply held purpose — a reason for existing that goes beyond financial maximisation. Purpose acts as a compass, guiding decisions, behaviours, and trade-offs, especially when things get difficult.
It reminds employees, customers, investors, and partners why the business exists — and what role it plays in the wider world.
The Patagonia proof point
Few companies illustrate this better than Patagonia. Its stated purpose — “to use business to inspire and implement solutions to the environmental crisis” — is not a marketing slogan. It’s an operating system.
Patagonia designs durable clothing that doesn’t need frequent replacement. It repairs garments for free. It shares environmentally friendly material innovations with competitors. It takes back products at the end of their life for recycling. It partners with platforms like eBay to encourage reuse through second-hand resale.
Crucially, Patagonia does not reject profit. It understands that profitability enables purpose — not the other way around. The company openly states that it will not sacrifice its purpose for short-term financial gain. And yet, this commitment has produced something most companies desperately chase: fierce customer loyalty, highly engaged employees, and one of the strongest brand reputations in the world.
Its growth and financial performance have not suffered despite its purpose. They have accelerated because of it.
COVID-19 removed the mask
The pandemic exposed uncomfortable truths. It revealed the destructive impact humanity has had on the planet, and it highlighted which companies were built for resilience — and which were not. Even before COVID-19, consumers were increasingly demanding that brands do more than generate profits. They were backing those beliefs with their wallets.
Post-pandemic, this shift has only intensified.
Businesses will no longer have the luxury of choosing whether or not they want to become more purposeful. Consumers will force change through their purchasing decisions. Governments will reinforce it through regulation that evaluates success not just on profit, but on people and planet outcomes as well.
The debate between purpose or profit is over.
The future belongs to organisations that understand how to deliver purpose and profit — not as trade-offs, but as mutually reinforcing drivers of long-term success.
The only remaining question is how long some businesses will wait before they realise that the game has already changed