Why Impact is (Finally) Becoming a Moat

At a Glance

• Why “impact” is no longer an afterthought

• Leaving a wake of humanity in everything you do 

• The last durable moat 

I used to go to conferences like Conscious Capitalism and get inspired by the people, but depressed by the fact that most efforts to be “responsible” were sidelined under capitalist pressures. 

Companies like Patagonia were anomalous fruitcakes in a sea of bottom-line investor dweebs and kowtowing execs. 

AI and automation are forcing a change. Companies must be more human to survive, as there won’t be much else to stand on when all else is equal. 

James Citron is leading one of those companies. He’s the founder and CEO of Pledge, and we discussed the “finally-becoming-real” moat of impact. 

NB: His advice isn’t just for “social ventures,” but for any company working from a deeper source of meaning. It’s more how than what.

It Starts with Calling

James didn’t start as a social entrepreneur. 

Like a lot of us, he got swept up in tech startups, surrounded by the groupthink of venture rounds and exits. Then he had his first child and a moment of clarity.

“I don’t want my legacy to be creating ads on cell phones.” 

The result was Pledge, a company that builds the infrastructure for contextual donations, such as e-commerce giving, employee giving, and text-to-donate. (Side note: I worked on this same problem in the dot-com days, but long before the world was ready.)

When Calling Becomes Strategy 

Their mission to power generosity isn’t a purpose statement, slogan, or marketing tactic. It’s their lifeblood. And a design constraint for everything they do. 

From product roadmap sessions to paying employees to volunteer (“Dollars for Doers”) to the way impact metrics are tracked with the same rigor as growth metrics. 

When Pledge realized that nearly 3% of every donation disappeared into processing fees, they didn’t turn it into a weasly marketing ploy. They changed the system.

Now 100% of donations go to nonprofits, made possible by optional tipping that has unlocked millions more in donations and driven hypergrowth for the company.

As a result of this commitment, CNN chose them as their global disaster-response platform, thousands of brands now embed impact as a daily behavior, and hundreds of millions in donations are processed annually.

His Advice 

“You don’t need to be a big company like Patagonia. But you need to start early.”

• Embed impact on day one, even if it seems small 

• Weave it into the product, not just the values deck

• Show the data; people don’t trust vibes anymore

What you embed early becomes both an evolving legacy and a moat no competitor can copy, with impact that compounds.

The Future Winners 

A company’s calling is the symbiotic merging of shared meaning, desire, and movement. And when done well, is uncopyable.  

Pledge is what it looks like. 

This isn’t “social good.” This is growth arising out of shared commitment. And when that growth makes the world better by design, you don’t need to defend your relevance. You earn it. And you keep it. Why? Because it is uniquely yours. 

And in a future of rampant sameness, that’s your last durable moat.

With Love,

Dave 

Conversations like this are shaping the book I’m currently writing on imagination, calling, and human-centered competitive advantage in an AI era. If you have great stories, let me know!!!

Looking for more impact and human-first moats? Hit reply - I'd love to hear your story.