The Challenge Is Not Having a Purpose. It Is Building a Business Model That Can Sustain It.

Design Vinicius Montana

Over the past few years, purpose has become a central topic in business. Companies have made public commitments around climate change, diversity, social development, and a wide range of impact-related agendas. This shift represents meaningful progress. At the same time, it has drawn attention away from a subject that often remains in the background: the business model itself.

A business model determines how an organization generates revenue, allocates resources, compensates people, invests in innovation, and makes decisions. It also defines how well a company can uphold its commitments during periods of growth, market shifts, or financial pressure. In other words, purpose may provide direction, but it is the business model that creates the conditions for that purpose to endure over time.

Revisiting this topic led me back to a classic economic concept: cross-subsidization.

Although the term may sound technical, the idea behind it is straightforward. Cross-subsidization occurs when part of the value generated by one activity is used to support another that is considered strategically or socially important. This is not an exception. It is a well-established mechanism used across many sectors of the economy.

Universities use revenue from certain programs to fund scholarships and research. Hospitals balance different sources of income to expand access to healthcare. Technology companies offer free versions of their products, supported by customers who subscribe to premium plans. In each of these examples, there is a deliberate decision about how the value created by the organization will be redistributed.

This perspective seems particularly relevant for purpose-driven businesses.

In many organizations, social initiatives still exist alongside the core business rather than within it. Pro bono work, discounted services, donations, and community programs often depend on available financial resources or the personal decisions of company leaders. These initiatives are valuable and frequently necessary, but they do not always grow alongside the business or withstand periods of economic pressure.

Cross-subsidization offers a different approach. Impact no longer depends on isolated decisions; it becomes part of the company’s economic structure. Business growth strengthens its ability to generate value for other stakeholders by creating a permanent mechanism for redistributing part of the value generated by the business itself.

This principle can be applied in many different ways. A technology company can provide free access to its platform for nonprofit organizations. A consulting firm can dedicate part of the revenue from large corporate projects to initiatives that serve the public interest. An architecture practice can subsidize projects for communities that would otherwise never have access to professional design services. The underlying principle remains the same. Impact is no longer something that happens alongside the business.

It becomes part of the way the business is designed.

At Creators, this reflection led us to formalize a practice that had been part of the company since its inception. Since 2024, we have dedicated part of our time, knowledge, and business results to developing brands for civil society organizations. In 2026, this practice officially became part of our business model through Branding with Impact, a program that reinvests part of the results generated by our corporate branding projects into branding and communication projects for organizations that cannot afford this type of investment.

This example is not intended to present a universal solution. Every organization will find mechanisms that reflect its own reality, industry, and capabilities. The most interesting aspect of cross-subsidization is not how it is implemented, but the shift in perspective it encourages. Instead of asking how much a company can give back to society, we begin asking how the business model itself can distribute part of the value it creates.

This is a conversation that deserves more attention among organizations seeking to grow without compromising the purpose that inspired their creation.

How could cross-subsidization be applied to your business? It is a question worth exploring, and one that may lead to unexpected ideas.

If you would like to learn more about our Branding with Impact initiative, visit:

https://www.creatorsbytruth.com/impactbranding

Vinicius Montana is the Founder and Creative Director of Creators by Truth, a B Corp-certified branding, strategy, and conscious communication studio. After more than two decades leading creative projects for global brands at major advertising agencies, he redirected his work toward developing brands and organizations committed to creating positive impact.