Rethinking profit: embracing regenerative business for social impact

A thought piece by Trust CEO Jessica Taplin

Profit. It’s a word that elicits mixed reactions in today’s society. While traditionally viewed as the lifeblood of business, it often carries a negative connotation, associated with greed, exploitation, and disregard for societal well-being. Yet, profit can be a powerful force for good—a catalyst for innovation, growth, and positive social change. So why does it remain such a dirty word in the public discourse?

Business, as a whole, has struggled to shake off its image as a purely profit-driven entity. Despite the recent emphasis on Environmental, Social, and Governance (ESG) metrics to showcase contributions to the planet, the reality is that ESG frameworks primarily serve as tools for risk management and investor reassurance, rather than genuine measures of social impact. While important, this approach falls short in addressing the broader societal factors of health, education, economy, and social policy.

What if there were a paradigm shift towards capitalism welcoming and encouraging regenerative business—a model centred on identifying social issues and developing sustainable solutions with a focus on scalability and shared value creation?

Traditionally, such endeavours have been relegated to NGOs, charities, social enterprises, seen as outliers from the mainstream business model.  Social Enterprises do this already many may say, and yes they do, but their focus is social output with profit, not profit with social output.

I was interested in exploring the differences between Social Business or Regenerative Business, and consider profit, and whether it needs to be viewed by so many in the sector as a negative or something to be condemned.

Regenerative Business

Focus: Regenerative businesses go beyond minimising harm; they actively create positive change for the environment and people.

Purpose: These companies actively contribute to the restoration and enhancement of ecosystems. They work on improving the health of the entire ecosystem they operate within.

Principles:

• Holistic Thinking: Recognizing the interconnectedness of environmental, social, and economic systems.
• Net Positive Impact: Aiming to leave the planet and communities in an improved state.
• Collaboration and Partnership: Co-creating solutions with employees, suppliers, and local communities.
• Continuous Learning and Adaptation: Embracing innovation to respond to evolving challenges and opportunities.

Benefits:

• Environmental Stewardship: Resource conservation, carbon footprint reduction, and circular economy principles.
• Social Impact: Prioritising community well-being, fairness, inclusivity, and responsible labour practices.

Social Enterprise

Focus: Social enterprises are businesses that trade for a social or environmental purpose.

Purpose: They prioritise impact alongside financial success, making a positive difference in society while sustaining their operations.

Characteristics:

• Mission-Driven: Their primary goal is to address social or environmental challenges.
• Profit with Purpose: They generate revenue but reinvest it to achieve their mission.
• Balancing Act: Balancing social impact and financial sustainability.

Examples: Fair-trade cooperatives, community interest companies, and non-profits.

Benefits:

• Community Support: Engaging with local communities and fostering positive relationships.
• Equitable Practices: Promoting social equity and responsible labour practices

While both regenerative businesses and social enterprises aim for positive impact, their approaches and focus areas differ. Regenerative businesses are intended to actively restore ecosystems, whereas social enterprises prioritise social and environmental goals in their operations.

Having read this, on top of other research, my view was re-affirmed, that true resource and capacity to effect meaningful change lies not within a single solution. Social Business, B Corps and Regenerative Business all have a part to play – collaboration, and that means government, civil society and the corporate realm coming together, each contributing their skill set, perspective and view.

Swift solutions at scale are called for, and in a time of rising public sector costs and straitened finances, big business has a key role to play – and not just through the enforcement of every greater taxes and financial levies, as that in essence makes a business less profitable and ultimately less able to help be part of the solution.

The key lies in reframing profit not as an end in itself, but as a means to drive social impact. By aligning business objectives with societal needs, companies can tap into their vast organisational resources and expertise to address pressing social issues whilst also seeing commercial benefit – and this enables scale to the solution and the potential to finally address the endemic of weighty societal problems.

But this requires a departure from the David-versus-Goliath mentality, where large corporations sit down alongside charities who are often experts in their field and know the solutions, but cannot scale them, in order to leverage their respective strengths for the greater good.

In this symbiotic relationship, business gains more than just financial returns—it earns goodwill, brand loyalty, and a sense of purpose. By investing in solutions that improve the health, education, and economic well-being of communities, businesses create a virtuous cycle of social and economic prosperity. Healthy, financially stable households are not only better positioned to engage with commerce but also to contribute to larger global challenges, such as climate change mitigation.

Furthermore, by taking an active role in addressing societal issues, businesses can foster a sense of community and belonging among employees, customers, and stakeholders. This collaborative approach transcends traditional corporate social responsibility initiatives, leading to more sustainable and impactful outcomes.

In an era where governments often struggle to address complex societal challenges, the onus falls on businesses to step up and drive positive change.

Profit, far from being a dirty word, can serve as a powerful tool for transformation when harnessed responsibly and ethically.

By embracing the principles of regenerative business, companies can not only enhance their bottom line but also leave a lasting legacy of social impact and shared value creation.

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