Rev. Brian J. Shanley, O.P., President St. John's University-New York | St. John's University-New York
Rev. Brian J. Shanley, O.P., President St. John's University-New York | St. John's University-New York
Timothy L. Keiningham, Ph.D., a professor at The Peter J. Tobin College of Business, is challenging traditional views on corporate responsibility with his recent paper titled "Social Profit Orientation: Lessons from Organizations Committed to Building a Better World." Co-authored with four other marketing experts, the paper suggests that companies should integrate social values into their business strategies rather than limiting themselves to traditional charitable contributions.
The concept of Social Profit Orientation (SPO) is defined by Dr. Keiningham and his coauthors as an organization's commitment to incorporating sustainable social and environmental impacts into its core mission. Their research involved interviews with over 60 leaders from 21 for-profit and nonprofit organizations, demonstrating how a dual focus on profitability and social impact can benefit both business sustainability and societal development.
Dr. Keiningham explained that businesses have historically engaged in charitable work primarily to build market credibility but often kept it separate from their core operations. He argues for finding shared value by leveraging existing skills to contribute positively to societal or environmental well-being while maintaining profitability.
Among the examples cited in the paper are Mastercard's efforts in Africa, which aimed at financial inclusion while expanding its customer base, and Norwegian insurer Gjensidige's climate action strategy aligning risk models with responsible investments.
Dr. Keiningham noted that companies like Gundersen Health System and IKEA US have successfully integrated SPO into their operations without compromising financial performance. These companies found compatibility between social awareness commitments and financial goals, particularly appealing to younger consumers and employees who share similar values.
Marketing News featured Dr. Keiningham's paper prominently in its Fall 2024 edition, recognizing it as one of the most accessed articles online within six months of publication. Matt Weingarden of the American Marketing Association praised the research for addressing complex societal challenges through business involvement.
Dr. Keiningham hopes that this attention will highlight a business philosophy aligned with St. John's Vincentian mission, encouraging unconventional yet effective thinking among businesses seeking alignment between profit and purpose.
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