Picasso once said that “Every act of creation is first an act of destruction”. How appropriate to remember this quote, as we were in the midst of planning our first session with the new cohort of students from the MSc in Marketing & Creativity from ESCP Europe Business School. We had in front of ourselves the challenge to lead an action-based session, part of a wider module named “Managing for Social Impact”, that would discuss “How positive social impact can generate value”. If we wanted to create something different, then our act of destruction was portraying itself as a paradox just in front of us: why can’t our minds be comfortable with combining social impact and value creation – even financial value?

Not to our surprise – because we knew the high calibre of students that would take part in the session – but to our delight, the discussion was energetic. They had been prepared to engage by reading examples of companies that had incorporated social impact to the way they do business. From Barthi Airtel, the low-cost network provider from India to the luxurious cashmere brand Brunello Cucinelli, and from Tesla Cars electric vehicles to Living Goods, the Avon-model distribution company in Uganda. They were familiar with a range of sectors and company sizes that viewed their impact beyond the sales of their own products.

Together, the class concluded that the paradox is a consequence of what we understand social impact to be. Social investment brings to mind the idea of companies sponsoring community projects and hunger programmes in Africa, but the cases and the discussion showed social impact to be much more than that. We understood it as the role a company plays to the agents that interact with it. It goes from creating jobs and development opportunities for its employees, and therefore developing the economy of the region around it, to creating a deep and trustworthy relationship with customers by offering products that are relevant to their needs and respect the environment at the same time.

Essentially, social impact will be the driver of the revolution we are starting to see in the business world: Business 3.0. The businesses that are concerned about not only existing in the next few decades, but also about having competent and dedicated employees, responsible investors, trustworthy suppliers, enough natural resources to produce and a loyal customer base. Ultimately: to be successful.

But those businesses can only succeed basing themselves on social impact if it’s authentic, integrated to the corporate strategy and sustainable in the long term. Are you wondering why? Stay tuned to our next blog post from our founder and CEO, Suzanne Gowler.