Purpose is paramount
Now, more than ever, it is critically important for companies to stand for something more meaningful and fundamental than simply making money. With levels of trust in institutions and politicians plummeting during the pandemic, more and more people are turning to businesses and brands as entities to place their belief in. They have been doing this in increasing numbers since the turn of the century, but we are fast approaching the tipping point.
In the 2021 Edelman Trust Barometer, business is now considered to be the only trusted institution left, scoring well above government, NGOs and the media. This places a heavy responsibility on the shoulders of the private sector, and those companies that actively take up this challenge will be handsomely rewarded. Those that adopted purpose many years ago will continue to enjoy a powerful competitive advantage as well as deriving the deeply-felt satisfaction of knowing that they are having an impact on the lives of their employees, their clients and on society as a whole.
What is purpose?
Purpose is a company's reason for being beyond simply making money. Making money is a result or an outcome. Purpose sits right at the centre of corporate being. It is why the business exists. And it is the one thing that has the power to get the right employees and the right customers to form deep, long-lasting, emotional connections with both the company and the brand.
Customer and employee engagement is key to success. If employees and customers strongly identify with what the company stands for, it's half the battle won. All good things result. Like growth. Better margins. Increasing company and brand value. Focused innovation. Consistency. Clear decision-making. And so on and so. Or, in a single word:
SUCCESS.
Everyone else is doing it. So, why not you?
If you look at a list of the world's 100 most valuable brands you will be hard pressed to find one that doesn't already have a strong sense of purpose baked into its DNA.
These are companies that know the best way to attract, engage and retain staff, understand how to turn prospective clients into passionate advocates, and intuit how to get society to sit up and take notice. And they all do this through the power of core purpose. From Apple to Zappos, from E to Y, from Tesla to Timberland purpose is not so much a social responsibility programme but a way of life.
And your company can do it too. All it takes is a commitment to purpose and finding the right partner to help you along the journey. That's exactly when and where The Core Purpose Company comes in.
Not every business has to change the world
Not every business is big enough or powerful enough to change the world. But that doesn’t mean they can’t define, articulate and implement an organisational purpose that is higher than that of making money.
The starting point for defining business purpose is firstly to look at the touch points that exist between the business and its primary stakeholders, namely its employees and clients. If a business takes these seriously and is determined to find ways of improving them this could be the perfect starting point. Or it could be something that the business and its stakeholders share a commitment towards that is considered to be good for their collective area of influence. Over time this could grow into something that also resonates with the broader-based community and ultimately with society as a whole.
Purpose works just as well for services as for products
Consider this. All four of the big four auditing firms have a clearly defined and articulated core purpose and are all shining examples of purpose-driven companies. The only thing that these massive organisations sell are services. Do they know something that you don't?
Purpose-led brands are thriving in both B2B and B2C markets
The big auditing companies are all completely immersed in the business-to-business environment, and there are thousands of other companies servicing the business world on the back of a purpose-led offering. More and more, purpose is becoming a powerful magnet and something that is increasingly creating affinity and identification between companies. According to the recent 2020 B2B Purpose Paradox survey, 87 percent of B2B businesses feel purpose protects their company's reputation and 75 percent say purpose supports recruiting. Along with a whole lot of other very positive indicators.