If you’ve ever been on a wilderness trip, you know there are points when your guide is definitely not your favorite person. Your guide asked you to paddle harder in choppy waters to get to safety in a storm. Push through exhaustion to reach a campsite. But just the same, paddling harder and pushing through left you feeling happy, proud, stronger.

ESG is the guide that’s getting us to a better future with stronger businesses. But the anti-ESG movement is sowing doubt. So grab your coffee or a cocktail and let’s bust some anti-ESG myths, shall we?

1. ESG & Extractive Industries: Preparing for the Future

You might have heard that ESG is out to kill industries like oil and gas. But here’s the deal: ESG isn’t here to kill these industries; it’s here to help them thrive in the renewable energy era. Instead of being a roadblock, ESG is creating the path for them to participate in the opportunities of the future.

Consider the oil and gas companies investing in renewables R&D and building the capabilities to compete and thrive in the renewables economy. They’re not just being environmentally responsible in adopting these ESG practices; they’re securing their spot in the evolving energy landscape. By embracing change, these companies are safeguarding jobs and creating new ones in new sectors.

ESG isn’t the problem for these industries – it’s the solution for their more sustainable and secure future.

2. Not Politics, Just Progress

I’m not much of a conspiracy theorist, so let’s tackle the idea that ESG is secretly plotting to undermine conservative policies and industries. Nope. ESG is simply a way to raise the bar for all businesses when it comes to healing the planet we all live on, uplifting the communities that make up our stakeholders, and managing our businesses well to reduce legal and ethical risks. It’s about doing the right thing, regardless of your political stripes.

ESG doesn’t have a political agenda. It’s simply about good business and a sustainable, secure future. When companies follow ESG standards, they’re showing their commitment to ethical and sustainable practices. It’s not about politics, it’s about building a world where everyone can thrive. It’s our ally in creating a better future, which (I would imagine) is a pretty bipartisan issue, don’t you think?

3. Boosting Fairness & Ethics

Some critics say ESG standards mess with state codes and fair labor practices. Nope. Remember, the G in ESG is for Governance. ESG is inherently pro-fairness and ethical behavior. It encourages companies to treat their employees, customers, and communities with respect. Transparency and accountability reduce risk for businesses and ensure sustained positive outcomes, not just a great next quarter at any cost to the company’s future (which is arguably the anti-ESG approach).

Model legislation is popping up around the country aimed at making ESG-based operations more difficult. It’s critical, though, that all businesses have the freedom to operate in ways that benefit their bottom line and create significant social and environmental value. Of course, that also means businesses should have the freedom to choose the “good next quarter at any cost” approach if they wish. After all, having that choice is a testament to the measured freedom and flexibility American businesses are supposed to enjoy.

But history has shown that businesses prioritizing quick wins over long-term sustainability find themselves facing detrimental challenges sooner rather than later. On the other hand, history has also shown that embracing ESG-based operating models opens doors to increased returns and long-term success. Anti-ESG policies are only convenient for those looking for short-term and personal gains.

4. It’s Not Woke, It’s Just Having Values

Along the same lines as fairness and ethics, ESG is all about diversity, equity, inclusion, fair wages, and safe workplaces. These are values that should make us all smile, not cause political angst. When companies participate in ESG, they’re less likely to run into trouble with labor disputes and ethical blunders. Put simply, they’re being responsible citizens that value people, the planet, and profit in equal measure.

Those first three values–collectively DEI–are triggering for those they scare. But there’s a price to being afraid to uplift others. As a DEI expert put it to me in a recent conversation, when companies implement effective DEI practices, they’re building a bigger funnel for talent, customers, and investors than their competitors who don’t. Not to mention, of course, the moral, ethical, and simply human reasons to implement DEI practices.

The point is this – having values that serve and uplift historically marginalized people isn’t “woke.” It’s just being good to others and uplifting humanity collectively. Which, it turns out, is pretty good for business.

The Hero We Need

The anti-ESG movement has it’s wires crossed. Its roots are in short-term political and financial interests for individuals. ESG’s roots, on the other hand, are in long-term economic, social, and environmental interests of the masses. ESG isn’t the villain, it’s the hero we need. It’s a positive force pushing companies toward sustainability, scaling their benefit to society, the environment, and their own bottom line. It’s that trip guide getting us safely to our next beautiful campsite.

Choosing ESG isn’t just the right thing to do – it’s a smart business move that sets us on a path to a brighter, more sustainable future. So let’s get on board with ESG and work together to make the world a better place for everyone, especially our future generations.

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Identifying Your Business’s Purpose Archetype

Your business’s core values combined with who or what it exists to serve determines its Purpose Archetype. So to identify your business’s Purpose Archetype, start by considering two dimensions of your business: (1) core values and (2) products or services. For instance, if personal growth is a core value and the business sells fitness products, it may be a Trainer company. However, if your business sells fitness products and equitable access to fitness is a core value, it may be an Advocate company.

How Your Purpose Archetype Works

eliminates the noise

Your business’s Purpose Archetype helps in a few key ways. First, it narrows the focus and leads the business to its purpose statement. By using core values and products or services, you’ll eliminate the noise that distracts and overwhelms leadership when it comes to identifying purpose.

Take the story of a small restaurant group we worked with recently. The noise around the leadership told them that their purpose should be sustainable ingredient sourcing. They operated from that purpose for a few years, but it just wasn’t landing. Instead, a look at their values, products, and service helped them identify as a Nurturer company. From that Purpose Archetype, the restaurant group articulated a purpose statement that helped them focus and build on what makes them stand out in their market. Sustainable ingredient sourcing is an important part of the company’s business model, by the way. But their purpose is to develop the next generation of great leaders in the workforce.

connects with stakeholders

Traditional archetypes make it easy for us to understand and connect with a character, politician, or TV personality. So Purpose Archetypes make it easy for your stakeholders to quickly understand and connect with your business. When stakeholders easily understand and connect with your business, they’re more likely to commit to your business for the long-term.

The restaurant group’s Purpose Archetype helped them connect with their stakeholders by showing them great leadership in every interaction with the business. Customers experience their purpose of developing great leaders when they interact with kind and engaging staff members. They notice attention to quality when they taste the food and enjoy healthy ingredients. Likewise, suppliers experience kind and engaging buyers who are focused on building long-term relationships. And of course, employees are working in an environment of skill building and growth.

improves operations

The difference between a business that has a purpose statement and one that is purpose-driven is aligned operations. Of course purpose-driven businesses need to have a positive impact externally. But they also need to thrive as a business. This alignment is what drives the business outcomes and value that stem from purpose.

In a different example, consider an events company we worked with. Experiencing a leadership transition and changes forced by COVID, they needed to streamline and improve operations. Identifying as a Builder company, they were able to focus their operating resources on what they do best: creating space for entrepreneurs to grow. They also saw potential for expanded service offerings when they considered what it meant to be a Builder company.

Going Beyond the Purpose Statement

For businesses that strive to be truly purpose-driven, the purpose statement is only the beginning. Understanding the archetype behind your business’s purpose statement helps bring it to life in operations. Or, if your business is struggling to find clarity of purpose, discovering its Purpose Archetype will help generate an authentic and compelling purpose statement. Either way, it’s putting your purpose to work that counts.

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