Purpose Versus Profit: Should Tech Companies Have Both?

Ethics have never been more vital to tech. Privacy, data security, bias, AI -- the tech industry must constantly question the potential impact of any new product. But what about the impact of the businesses themselves? 

With great power comes great responsibility. That’s the position the tech industry finds itself in, on the global stage and in the United States -- with huge societal influence. Tech is a $1.9 trillion industry in the US, making it the largest tech market in the world. Over 9 million Americans are tech workers, and in the next ten years, the tech workforce is projected to grow twice as fast as the overall US workforce. 

Being a major player in the US’s workforce and economy means that tech influences everything from benefits, working conditions, living wage, and widespread professional development, to government policy, spending, and economic climate. 

But its impact is even more permanent than an economic or societal one. Tech is leaving a significant environmental footprint, through electronic waste and energy consumption that drains resources and produces carbon emissions. Globally, the information and communications technology (ICT) sector emits 2% of all greenhouse gas emissions -- more than the entire aviation industry -- and if trends continue tech will account for 15% of global emissions by 2040. That’s equivalent to half of the world’s transportation sector emissions. 

Related:Uniting IT, Finance, and Sustainability Through the Integrated Profit and Loss

All these figures grow, without fail, year over year. One thing is clear: The tech industry is an innovative force to be reckoned with and has the power to shape the digital world and our socio-environmental landscape. 

Why Tech Companies Should Care 

Tech is in a position to do the right thing. And we have every reason to.  

The US Bureau of Labor Statistics projects 23% growth among computer and information technology jobs from 2022 to 2032 -- much faster than average for all occupations -- making the technology sector an increasingly influential employer.  

The tech industry is poised to enact broader social change through workplace culture. Tech challenges the norm every day in product development, and it can do the same for its employee wellness. Tech should continue to push the boundaries of employee benefits, parental leave, healthcare, and lifestyle flexibility. Doing so encourages more applicants into career tracks for tech, in turn, bolstering the talent pool. It’s in our interest to keep tech a desirable sector, and it’s socially innovative to push other industries to break the mold and better support workers.  

Related:Why CIOs Must Lead the Charge on Sustainable Technology

From a social equity standpoint, tech should also lead the way because tech needs diversity to thrive. To meaningfully fulfill this need, a company or industry’s commitment to inclusion must evolve beyond representation. Businesses must draw in a rich variety of perspectives and people to ensure their product serves the needs of a diverse user base -- innovation flourishes where unique insights and skill sets are brought together.  

Our futures may be hitched to the tech industry, but without acting on their social responsibility, tech companies will fail to evolve -- and therefore fail to thrive. 

A tech company’s stakeholders aren’t just investors or C-suite executives. They’re employees, customers, and communities. At our company, becoming a Certified B Corporation™ (or B Corp) helped us apply this lens to everything we do. B Corp Certification recognizes companies that meet verified high standards of social and environmental performance, accountability, and transparency, granted by B Lab, a global nonprofit network organization. 

B Corp has given our software businesses a framework for improvement. It’s allowed us to critically and holistically evaluate our impact beyond profit: how we can improve, what we can double down on, and how other organizations have solved the same problems. It has ratified everything we’re passionate about and brought our vision for the future into focus.  

Related:Reducing the Environmental Impact of Artificial Intelligence

How Can Tech Companies Take On Social Responsibility? 

It starts with a straightforward mission: Be profitable and purposeful. At the outset, this seems like squeezing together two independent goals. But meaningful purpose will drive creative innovation and ultimately bring in profit. 

We need to set aside the perspective that our purpose is profit. That kind of thinking doesn’t bring about big ideas -- or forge a better future.  

So, where can tech focus its purpose? Climate and sustainability are a good start. Despite other industries facing public and governing pressure to address their emissions, the tech industry gets overlooked. But IT-related emissions will continue to grow 30% annually unless companies take action.  

Companies can partner with a consultant or conduct a full audit of Scope 1, 2, and 3 emissions to understand and learn about their carbon footprint. Software businesses should look toward green-powered data centers. Tech businesses with a physical supply chain or products could investigate opportunities that would serve a circular economy -- product versatility or repair programs are becoming increasingly valuable to consumers. Remember, profit through purpose is possible and tech businesses shouldn’t rule out the possibility of untapped success. 

To capture these opportunities and push forward with innovative ideas, tech needs to push harder to hire diversely. To do so, they need to start building a pipeline of candidates. While women make up 47% of the US workforce, the proportion of women working in tech is now smaller, at 32%, than it was in 1984, at 35%.  

Engaging with women and other marginalized students early on will encourage more underrepresented talent to enter tech. This kind of action requires a tech company’s most important stakeholder: their local community. Establishing or partnering with existing community mentorship programs, perhaps through a local post-secondary, will uplift students and make an investment in education that could one day return the favor to tech with talented minds and inspired, committed individuals. Profit and purpose, intertwined, create a positive feedback loop that will allow tech to reach new heights.  

This can only work if accountability and transparency are present throughout each organization. These two pillars are a daunting challenge, but they’ll push any business toward meaningful action and purpose.  

In tech, there’s no better time for those two things. We now have a responsibility to our employees, customers, and the world to do the right thing: to commit to building an inclusive, equitable, and regenerative economy, and redefine what it means to be a tech company in our ever-changing world.