We know that—all else being equal—people would rather work for a purpose than a paycheck. The power of “why” is strong. Yet we also know that without profit, organizations will not last. Robert Reiss in his article, “How to Become a Transformative CEO“, suggests that we are now in a fourth phase of business. He writes:

In the 1920s at General Motors Alfred Sloan introduced the corporation; in the 1950s Peter Drucker codified the practice of management, in the 1980s Japanese business brought quality and teams; and today the next phase of enterprise has emerged, transformative organizations, those that combine higher purpose and profit.

He goes on to offer a very compelling definition of a “transformative CEO” as someone who “creates new value that reinvigorates a company, reinvents an industry or reboots society.”

I hope he’s right. Here’s to the 4th phase of business and to profit with purpose.

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Check out Kevin Kruse’s new book, Employee Engagement 2.0, and discover how leaders turn apathetic groups into emotionally committed teams.

Kevin Kruse is a NY Times bestselling author and serial entrepreneur. For insider tips and exclusive content, join his newsletter at kevinkruse.com.