Social impact should be in tandem with core revenue-generation processes; Dove’s purpose and campaign focus on helping women redefine beauty are an excellent example.
Purpose-driven businesses enjoy an advantage in terms of sales. Sales tend to be much less susceptible to market conditions if your organization has an identifiable mission at its core.
1. Increased Profits
There is a growing movement that encourages businesses to prioritize social and environmental concerns over profits. While it may seem counterintuitive, prioritizing purpose rather than profit can actually yield many advantages for companies.
Blake Mycoskie founded TOMS shoes in 2006 with the promise that for every pair sold, he would donate one pair to children in need around the globe. TOMS quickly took off, earning itself an exceptional reputation as an agent of change.
2. Increased Customer Satisfaction
Today’s consumers who place great importance on values-driven purchasing behaviors want more from brands than just products and paychecks – they want assurances that they care for them, their community and our world.
Purpose can serve as an organizing principle, directing strategic decision making and shaping decision making processes to maximize positive impacts, while uniting people across departments and teams. Businesses who foster their purpose with regular reviews by all employees tend to experience higher customer satisfaction scores overall.
3. Increased Employee Satisfaction
People experience greater satisfaction and fulfillment at work when they have a meaningful purpose to strive toward, which in turn increases employee retention rates and ultimately boosts productivity.
Purpose-driven businesses also often foster professional development by helping employees gain credentials that will advance their careers, while having lower churn rates that result in greater stability and longevity within the workforce.
CVS Pharmacy stands as an example. They implemented a purpose statement that incorporates CSR and health as core values.
4. Increased Employee Engagement
Authentic purpose-driven businesses take their principles seriously and implement them throughout all aspects of business activities, earning the respect of consumers, stakeholders, and communities alike. This helps create strong brands.
Employee engagement can also increase. Studies indicate that employees who believe their efforts make an impactful difference are more likely to remain with a company where their mission and impact are clear.
Integrating purpose into onboarding and training programs, corporate meetings, culture-building activities and more is one way of doing this.
5. Increased Competitiveness
Businesses driven by purpose tend to be better at responding quickly to changes in business conditions, and have strong cultures that foster innovative solutions.
Purpose-driven businesses play an essential role in shaping decision making, inspiring employees and customers, building trust between stakeholders, and ultimately contributing to long-term success.
Purpose-driven companies are becoming more attractive to investors. A solid purpose allows a business to stand out from competition while meeting consumer needs more effectively.
6. Increased Retention
Companies whose purpose aligns with employees’ goals can increase retention rates significantly. Employees want to work for companies that support their personal values – something especially true among millennials.
Companies driven by purpose tend to be less vulnerable to economic downturns and can more readily sustain themselves through turbulent business environments – something which benefits everyone involved! They tend to experience less dramatic sales cycles.
7. Increased Innovation
Purpose is at the core of innovation. From hybrid engines to innovative payment processing methods, innovative ideas that stem from purpose tend to progress more successfully from conception to implementation.
People want to buy from companies that make an impactful difference in the world. Purpose can serve as an incredible differentiating force, inspiring employees and drawing in customers that share your values – creating a more holistic growth trajectory than solely targeting quarterly financial targets. A compelling purpose may even provide the basis for discounting inferior products or features altogether.
8. Increased Shareholder Value
Purpose-driven businesses tend to find it easier to attract and retain talent. Their deeper relationship with employees allows for them to feel appreciated while also offering them greater purpose, reward and recognition; this can reduce employee churn rates as well as hiring/training costs for new staff members.
Today’s consumers want to support brands that reflect their values and make an impactful statement about them in society. Purpose-driven companies provide authentic solutions for economic, environmental and social challenges.
