People are starting to use their economic power to create a more positive future. They have high expectations on leaders of companies, organizations and societies.
Purpose is often confused with CSR, and that risks reducing purpose-driven strategies to something that's detached from the business. If you fail to connect your purpose with your core business, you miss out on the impact it has on both commercial and societal development.
Purpose has become a key driver of profitability and commercial growth, simply because purpose matters to consumers. If you manage to check all the boxes and contribute positively to both customers and a bigger perspective, your business will also thrive.
Study after study has proven the real business impact. Over a 20-year period, listed companies that considered all stakeholder perspectives quadrupled in shareholder value, while S&P 500 only doubled.2 And brands with perceived high positive impact see a 175% growth in brand value, compared to 70% growth for those with low perceived positive impact.3
Purpose matters for companies today, and the numbers on that are only pointing in one direction. In all studies, younger generations think this aspect of business is more important, sometimes even twice as important.
We’ve looked at the facts about what makes people consider a company purposeful. From that, we’ve defined that purposeful brands have “an honest intention to lead positive change.”
But to have any business impact, purpose should never be just an intention. It has to be about action, living your purpose and walking the talk. Every day.
When people feel that they can count on a brand, and that it shares their personal values.
Examples of trustworthy brands
When people think a brand is clear about how it wants to influence the world in positive ways.
Examples of visionary brands
When people expect a brand to be influential in the future and do well there, inside out.
Examples of future-proof brands
When people believe a brand is conscious about its impact on people, society and the planet.
Examples of responsible brands