Businesses are changing how they innovate, operate, and define success because, besides generating profits, they’re expected to contribute to solving ethical, environmental, and social concerns. This demand to combine profit and purpose to become socially responsible enterprises (SREs) is bound to affect the global economy. Tom Chappell, a serial entrepreneur, aims to help businesses align their practices with the values they need to thrive, given this trend.
Chappell’s journey of co-founding Tom’s of Maine (a company manufacturing natural personal care products) and launching Tom Helps demonstrates that businesses can do more than just offer products and services. They can also do good for the benefit of many. This has always been Chappell’s mission since he established Tom’s of Maine in 1970. Now, over five decades later, he continues to be a responsible leader whose goal is to positively impact others.
Generally, this focus on SREs started when the expectations of consumers, employees, and investors changed. What drove this shift? Younger generations have been using their purchasing power to support only the businesses that have the same values as them. Sustainability and ethical practices are non-negotiable for Millennials and Gen Z, which means they’ll only engage with brands that are transparent and accountable. A Corporate Social Responsibility (CSR) survey shows that 77% of American consumers would rather buy from businesses that contribute to environmental and social efforts.
Another driver is the digital age. People can now access information anytime, anywhere. Consumers and employees can scrutinize corporate practices with a single finger tap. Inequality in society, climate change, and all the other global issues helped to push this demand for SREs further.
These are all external pressures. The changing internal dynamics should also be considered. Over 70% of employees say they prefer working for a company with a robust green footprint. This only means they want to be part of organizations that contribute meaningfully to causes. Companies that don’t adapt to this demand lose top talent (and, in extension, customers).
Chappell knows this as someone who has long been leading this movement of valuing sustainability. It’s not an exaggeration to say that Tom’s of Maine is a trailblazer in the natural personal care industry. After all, it introduced practices such as listing detailed product ingredients for complete transparency and was vocally against animal testing. At the time, one needs to do animal testing to receive the Seal of Acceptance from the American Dental Association for fluoride toothpaste. This is required by the Food and Drug Administration. Tom’s of Maine was adamant to commit to its no-animal-testing policy. Hence, it partnered with the University of Michigan to develop alternative trials.
Tom Chappell
Tom’s of Maine became the first company to obtain the ADA seal without testing animals, thanks to these trials. Needless to say, it set a new standard, and competitors naturally followed its example. This success only shows that companies can challenge norms without having to change their principles. They can practice ethical business principles and innovate at the same time.
Tom’s of Maine, not stopping from making a difference, dedicated 5% of employee-paid time to volunteerism and contributed 10% of profits to community organizations. These initiatives further improved the reputation of the brand as well as its financial performance.
Chappell is aware that businesses aiming to become socially responsible might feel overwhelmed to meet expectations. He founded Tom Helps to help with that. The organization intends for the next generation to become change agents. Hence, it operates under a Statement of Beliefs that outlines principles like respecting people and nature, committing to community, and strengthening spiritual connections. The founder believes this framework can help organizations build an accountable, collaborative, and purposeful culture.
It’s worth mentioning that Chappell offers consulting services, resources like Tom’s Library, and programs/courses like the Seven Intentions of Values-Centered Leadership™ through Tom Helps. “All my life, I’ve worked to help people become better ethical agents,” says Chappell. “I want to see more organizations serving society as a whole and not just their direct stakeholders. That’s why I help leaders establish their businesses with strong values.”
Tom Chappell’s journey as an entrepreneur truly shows that embedding purpose into a business can have a vast impact culturally and financially. Doing so also inspires the next generation to be leaders who are socially conscious. This is important, especially now that consumers and employees expect organizations to be more transparent and accountable.
