The pandemic has transformed the business landscape. Companies are now re-evaluating their purpose by asking themselves “why” they exist and how can they make a real difference, instead of simply operating for profit.
Although the word “purpose” has been a business buzzword since 2010, we are now seeing clear signs that companies want to develop an authentic approach to changing their role in society. As Jamie Mitchell, former MD of Innocent Drinks says, “We are now seeing this move from shareholder to stakeholder… with more and more businesses saying they care and they want to be a force for doing good in the world.”
If you’re a business we recommend you seize the purpose-driven opportunity described below. If you are a charity this is a huge opportunity, because the best way for companies to demonstrate their purpose is to build ambitious corporate-charity partnerships.
Here are five reasons why a purpose-driven approach is now vital for companies:
Purpose-driven Companies Outperform the Competition
There is growing evidence that companies which are purpose-driven outperform their competition because they understand “why” they exist. Able to see the bigger picture, they transform their business model to engage their employees and meet the rapidly changing expectations of their customers. As reported by Deloitte in 2019, “Purpose-driven companies have witnessed higher market share gains and grown three times faster on average than their competitors.”
Unleash the Power of Your Employees
Only 45% of employees in the UK feel engaged at work (Qualtrics, 2017). This is a significant challenge for business, because it means that more than half of your workforce are not 100% motivated. Employees who have a clear understanding of their company’s purpose, feel more engaged and motivated to give their best. This is because they see how their role directly connects to creating a better society. The result? More creativity, working better together, improved performance and therefore increased profit!
Attracting and Keeping the Best Talent
One in four workers is considering leaving their job after the pandemic (Forbes, 2021). This means that companies are concerned about keeping and attracting the best talent. Millennials are central to this challenge, with greater expectations around flexible working, career development and the company’ contribution to society and the environment. This is highlighted in a study by Cone Communications, which found that 64% of millennials won’t take a job if the company doesn’t have a clear environmental and social policy. Also 83% would want to stay if the company addressed it’s wider social and environmental responsibilities.
Creating consumer loyalty and brand value
Consumers today are more likely to base their buying decisions on how companies treat their employees, deal with their environmental impact and support the communities in which they operate. Purpose-driven companies are able to develop authentic, deeper relationships with their customers who believe that their loyalty contributes to the brand’s purpose. Patagonia, the outdoor clothing manufacturer, is an excellent example of a company that has matched their purpose with their target consumers’ values. Their purpose is, “We’re in business to save our home planet.”
Demonstrating Purpose through Corporate-charity Partnerships
Companies cannot claim they are a purpose-driven unless they are actually doing something about it. We know that one of the most effective ways for companies to show their commitment is by building a shared purpose, long-term partnership with a charity. By partnering with a charity you can tap into the specialist knowledge and skills of a cause that matches your purpose. This partnership will give you the scope to involve colleagues, engage customers and demonstrate your impact. Not only will this show you are truly committed to your purpose, it will also help you stand out in a crowded market.
If you want to speak with someone at Remarkable Partnerships about how your company or charity can build purpose-driven partnerships, please contact us at firstname.lastname@example.org.