HBR On Leadership: Why Profits Follow Purpose with Aneesh Shah

Episode Release Date: June 25, 2025

In the final episode of the 2025 HBR Leadership Summit series, Harvard Business Review’s Alison Beard engages in a compelling conversation with Aneesh Shah, CEO of the Mahindra Group. Under Shah’s leadership, Mahindra Group, one of India’s largest conglomerates, has seamlessly integrated a purpose-driven philosophy into its expansive portfolio, which spans automobiles, finance, real estate, agriculture, hospitality, digital renewables, and more. This detailed summary delves into the key discussions, insights, and conclusions drawn from their dialogue on navigating complex business landscapes while steadfastly adhering to a mission that prioritizes societal impact.

1. Upholding and Evolving Mahindra’s Mission

Foundation of Purpose:
Mahindra Group was founded in 1945 with a clear mission focused on the dignity of labor, meritocracy, and societal responsibility—a philosophy akin to today’s ESG (Environmental, Social, and Governance) principles. Aneesh Shah emphasizes the importance of this enduring culture, stating:

“It's the DNA of the group and that has translated to the Rice philosophy that you just outlined. And for us as leaders, we are very conscious of the fact that we are custodians of this culture.” (01:30)

Evolving with Growth:
As Mahindra expanded into a global powerhouse employing over 260,000 people across 100 countries, the company maintained its foundational principles by ensuring that every strategic decision aligns with its purpose-driven ethos. This commitment has been pivotal in attracting and retaining top talent, fostering a culture where “purpose leads with profits will follow” (01:30).

2. Purpose-Driven Decision Making

Strategic Business Choices:
Shah illustrates how Mahindra’s mission influences its business decisions, such as focusing on empowering women and educating girls in India. He explains:

“We focused on educating the girl child... empowering women to help skill them, to help them find jobs, to make them financially independent.” (02:49)

Selective Business Expansion:
The company’s purpose acts as a filter for entering new markets and industries. Shah notes that Mahindra deliberately avoids businesses that do not align with their societal impact goals, ensuring that their growth contributes positively to communities.

3. Navigating Global Uncertainty

Agility and Resilience:
In the face of fluctuating global trade policies and unexpected crises like the COVID-19 pandemic and the semiconductor shortage, Mahindra’s strong balance sheet and agile operations have been crucial. Shah remarks:

“Through Covid we built the resilience to be agile, to be able to act quickly when something happens.” (04:24)

Proactive Crisis Management:
Mahindra’s ability to respond swiftly to crises, such as manufacturing challenges during the semiconductor shortage, underscores their preparedness and strategic foresight.

4. Purpose as a Catalyst for Financial Success

Building Trust and Loyalty:
Shah connects Mahindra’s purpose-driven approach to its impressive financial performance. Highlighting the company’s market cap growth and stock performance, he attributes success to:

“Purpose creates a level of trust... consumers look at us and say, if that's what you're telling us, I believe you. I'm going to therefore be your customer.” (06:57)

Attracting and Retaining Talent:
A committed workforce is a cornerstone of Mahindra’s profitability. Shah explains that a purpose-oriented culture attracts top talent, which in turn drives superior business results.

5. Ensuring Supplier Alignment with Corporate Principles

Rigorous Supplier Selection:
Mahindra prioritizes suppliers who share their commitment to societal impact and ethical practices. Shah states:

“We have a fairly rigorous criteria in terms of who we work with... these are some of the guardrails that help us.” (09:31)

Building Long-Term Relationships:
By fostering strong, trust-based relationships with suppliers, Mahindra ensures consistency and alignment with its mission across diverse geographies.

6. Embedding Purpose into Organizational Culture

Daily Practice over Rhetoric:
Shah emphasizes that living the company’s values daily is crucial. For instance, in their real estate business, Mahindra chose integrity over short-term gains:

“We're not getting approvals in time... you're doing the right thing, stay on track. We may miss numbers, but that's okay.” (10:33)

Performance Metrics Aligned with Values:
Performance evaluations incorporate adherence to values, ensuring that employees prioritize the company’s mission over merely meeting financial targets.

7. Leadership Responsibilities and Philosophy

Stewardship of Culture and Talent:
Shah outlines his primary responsibilities as maintaining the company's culture, nurturing talent, and ensuring strategic clarity. He encapsulates this with Mahindra’s mantra:

“Do less, think big and execute flawlessly.” (12:56)

Focusing on Impactful Actions:
By encouraging leaders to prioritize meaningful outcomes over breadth of control, Mahindra fosters a focused and effective leadership approach.

8. Audience Questions and Insights

Balancing Short-Term Profits with Long-Term Purpose:
Shah addresses concerns about maintaining long-term purpose without compromising short-term financial goals by emphasizing investor support for sustainable value creation:

“We're here to build a long term business... it is essentially in the context of what makes sense for us longer term.” (18:21)

Building Organizational Resilience:
He shares strategies like scenario planning and fostering a culture of helping others to enhance resilience:

“Helping others is one metric that we feel is a very important one... that culture around helping others is one that we found has helped build resilience.” (19:15)

Proactive vs. Reactive Organizational Change:
Shah highlights the importance of clarity and continuity when implementing change, using his role as the first non-family CEO as an example:

“We used a term continuity in change... clarity around change and the continuity that's required is an important part of being able to navigate that through the organization.” (21:25)

Purpose Guiding Strategic Decisions:
He provides examples where Mahindra refused to engage in lucrative but misaligned businesses, reinforcing their commitment to purpose over profit:

“We received a call to get into an area to manufacture ammunition... we're not going to play there.” (23:11)

9. Cross-Cultural Influences and Personal Philosophy

Global Perspective:
Shah credits his international experiences, particularly his 14 years in the US, for shaping his inclusive and empathetic leadership style:

“I've learned a lot from different cultures... understanding people, to be able to understand what are their aspirations.” (24:00)

10. Influential Literature

Unexpected Inspirations:
Surprisingly, Shah cites P.G. Wodehouse’s works as influential for their blend of wisdom and humor, alongside other literature focused on culture, technology, and societal change:

“PG Wodehouse... has always been a great set of books that I've always gone to.” (24:58)

11. Leading with Purpose: Practical Steps

Employee-Centric Initiatives:
For organizations aspiring to adopt a purpose-driven approach, Shah recommends starting with employee input to harness collective ideas and foster a shared mission:

“Start with input gathering... get everyone on board to be able to do it.” (25:51)

12. Collaboration Between Business and Government

Optimistic Outlook on Collective Problem-Solving:
Shah expresses optimism about the potential for business and government leaders to collaboratively address global challenges like socioeconomic inequality and sustainability:

“I think it definitely is possible... the intent has been very positive.” (27:14)

Active Engagement with Government:
As head of India’s largest industry association, Shah emphasizes the productive dialogues between business leaders and the government in shaping India’s future:

“At least in India they clearly are... a government that is listening a lot and wants to make a difference.” (28:10)

Conclusion

Aneesh Shah’s leadership at Mahindra Group exemplifies how a steadfast commitment to purpose not only drives positive societal impact but also underpins robust financial performance. By integrating purpose into every facet of decision-making, fostering a resilient and inclusive culture, and maintaining strategic clarity, Mahindra stands as a testament to the belief that profits indeed follow purpose. This episode offers invaluable insights for business leaders and aspiring entrepreneurs aiming to build sustainable and impactful organizations.

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