The current movement towards impact-focused business is not just a trend but a fundamental economic succession. Just as the tech revolution reshaped global industries, the impact revolution is now establishing a new paradigm where companies are valued on their ability to create both profit and positive contributions to society and the planet.
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Just as the 1929 stock market crash revealed the need for standardized profit reporting (GAAP), today's social and environmental crises necessitate standardized impact reporting. This creates the transparency required for investors, consumers, and employees to make informed decisions and for markets to function efficiently.
The democratization of technology via AI shifts the entrepreneurial goalpost. Instead of focusing on creating a handful of billion-dollar "unicorns," the more impactful ambition is to empower millions of people to each build a million-dollar "donkey corn" business, truly broadening economic opportunity.
History shows that transformative innovations like airlines, vaccines, and PCs, while beneficial to society, often fail to create sustained, concentrated shareholder value as they become commoditized. This suggests the massive valuations in AI may be misplaced, with the technology's benefits accruing more to users than investors in the long run.
Business is a unique domain where you can pursue selfish goals (building a large, profitable company) and selfless ones at the same time. By building a successful company with ethical, people-first practices, you force competitors to adopt similar positive behaviors to compete, thereby improving the entire industry for everyone.
Canva's core mission is a "two-step plan": 1) build a valuable company and 2) do good. Crucially, this isn't a sequential plan for after an exit. They believe step one fuels step two (and vice versa), integrating purpose directly into the business model from day one.
The most profound innovations in history, like vaccines, PCs, and air travel, distributed value broadly to society rather than being captured by a few corporations. AI could follow this pattern, benefiting the public more than a handful of tech giants, especially with geopolitical pressures forcing commoditization.
Impact data isn't just a niche metric for investors. Sir Ronald Cohen reframes it as a basic human right. He argues that every employee, consumer, and investor has a right to transparent, standardized information about the good and harm a company creates, moving the conversation from finance to ethics.
A linear career path is not required for success. Businesses ultimately value high performers who demonstrate an ownership mentality and consistently drive impact. Focusing on helping the business win creates opportunities to move across roles and industries, making your journey more valuable.
The dominant economic model pursues endless growth, often at a human or planetary cost. Donut Economics reframes the goal entirely: create economies that allow humanity to thrive by meeting essential needs while respecting planetary boundaries, irrespective of continuous GDP growth.
The emergence of venture capital as a major asset class was unlocked by the new ability to mathematically measure and price risk. Similarly, the current impact investing movement is being driven by our newfound technological capacity (via big data and computing) to quantify a company's social and environmental effects.