Inspired by the broader idea popularized in "Net Positive" by Polman and Winston, and adapted for today’s founders...
For decades, the dominant business strategy has been simple: extract as much as possible, maximize profits, and let someone else deal with the consequences. This model built billion-dollar companies, but it also created broken systems, environmental collapse, and a widening gap between those who have and those who don’t. Today, the cracks in that foundation are impossible to ignore.
I saw this firsthand early in my career, working with companies that measured success purely in dollars. Every decision revolved around margins and scalability, yet the teams inside those companies were drained, uninspired, and constantly fighting fires. Their customers weren’t loyal—they were merely tolerating the brand until something better came along. There was no deeper connection, no sense of shared purpose.
But when I started working with companies that prioritized impact, I noticed a fundamental difference. Their people were energized, their customers became advocates, and their growth felt inevitable.
The reality is shifting. Customers expect more. Employees demand purpose. Investors are shifting capital toward companies that think beyond quarterly earnings. In this new era, businesses that do nothing more than sustain themselves will lose to those that actively make the world better.
NOTE: RCY Labs has curated a list of 52 books for Founders (2025 Edition) who care about business profitability AND impact. Don't have time to read all 52 books? We've got you! We'll read them for you, and give you the summaries, audio casts, outlines, and frameworks to apply to your business ... all FREE in the Founders' Lab Community (on Slack). Join here.
What Does It Mean to Be Net Positive?
A Net Positive business doesn’t just minimize harm—it actively improves the world. It’s not just about being sustainable. It’s about being regenerative. The companies that will lead the future aren’t just reducing emissions or paying fair wages—they are embedding impact into the core of their business models.
Polman and Winston define it clearly:
“If you’re not actively making the world better, you’re making it worse—there’s no neutral.”
Too many companies believe sustainability is enough, but in a world where crises are compounding, neutrality is just another form of failure. Cutting emissions by 10% isn’t enough. Paying a fair wage isn’t enough. Businesses that succeed in the future will be the ones that repair, restore, and create new value for customers, employees, and society as a whole.
And the best part? These companies aren’t just surviving—they’re outperforming their competition.
Why Net Positive Businesses Win
I’ve worked with businesses on both ends of the spectrum—those desperately chasing short-term revenue and those committed to long-term impact. One way or another, the latter always wins.
Companies that operate with a Net Positive mindset are more resilient, especially in times of crisis. They attract better investors, employees, and customers because they represent a long-term, sustainable future. They build deeper trust, which translates into stronger brands and more loyal audiences. And perhaps most importantly, they are positioned for long-term profitability in a world that is increasingly regulating and rewarding companies based on their impact.
Net Positive isn’t a nice-to-have. It’s a strategic imperative.
The Five Principles of Net Positive Founders
1. Own Your Full Impact—Even What’s “Not Your Problem”
Most businesses focus only on what happens within their own walls. But Net Positive companies recognize that their impact extends far beyond their direct operations.
If your supply chain is unethical, it’s your problem. If your product contributes to social harm, it’s your problem. If your industry is broken, it’s your problem.
Founders must start looking at their entire business ecosystem—suppliers, partners, customers, and communities—and ask, “Where are we creating harm, and how can we actively fix it?” Those who ignore this reality will be forced to change when regulation, market shifts, or public scrutiny catch up to them.
Impact and profitability are no longer separate—they are directly linked.
Example: Nike’s Wake-up Call
Nike once had this reckoning when labor rights activists exposed their use of sweatshops in the 1990s. At first, they denied responsibility—it wasn’t their factories, after all. But as public pressure mounted, they realized the truth: ignoring the problem didn’t absolve them of it. Today, Nike has some of the most rigorous labor and sustainability standards in the industry. They had to be forced into change, but founders today have the opportunity to lead from the front instead of waiting until they’re held accountable.
2. Lead with Purpose (And Make It More Than a Slogan)
Most companies have a mission statement, but very few use it to guide their actual decision-making. Too often, purpose is relegated to branding and PR rather than embedded into company strategy. Net Positive companies don’t just talk about purpose; they use it as a decision-making framework.
Founders need to ask themselves:
“Does my mission actually influence how I run this company? Or is it just words on a website?”
If it’s not being used daily, it’s time to rewrite it—or remove it altogether.
Example: Patagonia’s Unapologetic Purpose
Patagonia is the gold standard here. They don’t just sell outdoor gear—they advocate for environmental activism, donate profits to sustainability causes, and even encourage customers to buy less to reduce waste. Their purpose isn’t a marketing gimmick; it’s the engine that drives their business decisions. And it’s why their customers are more than just buyers—they’re loyal evangelists.
If your company’s purpose isn’t shaping real decisions, it’s just marketing.
3. Partner for Bigger Impact
You can’t solve the world’s biggest challenges alone. The best businesses are realizing that collaboration—sometimes even with competitors—is the key to driving real change.
The problems we face today—climate change, inequality, technological disruption—are too large for any one company to solve alone.
Example: J.Crew & H&M—Collaborating to Transform Fashion Sustainability
J.Crew and H&M, typically seen as competitors, are proving that sustainability is not a solo effort. Through The Fashion Pact, an alliance of fashion CEOs tackling climate and environmental challenges, these brands are working together to drive industry-wide change. J.Crew is focusing on making regenerative cotton more accessible, helping transition farmers and brands away from traditional methods, while H&M has invested $600 million into Syre, a company dedicated to developing scalable, recyclable polyester.
By sharing resources, knowledge, and financial commitments, they’re accelerating solutions that no single brand could achieve alone—future-proofing their supply chains and setting new sustainability standards for the fashion industry.
Founders need to rethink partnerships. Look at your industry and ask: Who else is solving this problem? How can we work together to make meaningful progress?
4. Embrace Transparency—Even When It’s Uncomfortable
Customers and employees don’t expect perfection. They expect honesty. Net Positive companies build trust by being radically transparent—about both their successes and their failures.
For founders, this means sharing real progress, not just polished success stories. It means being open about where the company still has work to do. It means replacing performative sustainability reports with raw, honest assessments of where the company is falling short—and what steps it’s taking to improve.
Trust isn’t built on being perfect. It’s built on telling the truth and committing to getting better.
Example: Patagonia’s Transparency
Patagonia (again) leads by example here. When they realized their supply chain included forced labor in Taiwan, they didn’t cover it up. They published their findings and outlined a clear plan to fix it. Most companies would have hidden the issue and hoped no one noticed. But by openly addressing their failure, Patagonia strengthened their brand integrity rather than damaging it.
5. Regenerate, Don’t Just Sustain
Sustainability is about minimizing harm. Regeneration is about actively improving systems. The best businesses of the future won’t just be reducing their footprint; they’ll be making the world better because they exist.
For founders, this means asking,
“How can we leave a positive impact on every stakeholder we touch?”
Example: Interface’s Carbon-Negative Transformation
Interface, a global carpet manufacturer, used to be one of the most polluting companies in its industry. Then, their founder, Ray Anderson, set a goal of becoming restorative—creating a business that gave back more than it took. Today, Interface leads the industry in carbon-negative materials, proving that even traditionally harmful industries can shift toward regeneration.
The Founder’s Challenge: Are You Net Positive?
If your company disappeared tomorrow, would the world be worse off?
Ask yourself:
- Does my business create real-world value beyond just financial profit?
- Am I thinking about long-term impact, or just chasing short-term wins?
- Do I take full responsibility for my company’s impact, from suppliers to customers?
- Am I actively working to regenerate and restore, not just sustain?
Because for today’s founders, there is no neutral ground. You’re either building the future—or standing in its way.
And that choice? It starts now.
NOTE: RCY Labs has curated a list of 52 books for Founders (2025 Edition) who care about business profitability AND impact. Don't have time to read all 52 books? We've got you! We'll read them for you, and give you the summaries, audio casts, outlines, and frameworks to apply to your business ... all FREE in the Founders' Lab Community (on Slack). Join here.
