WHAT IS PURPOSE?
Purpose is the specific, positive role an organisation or brand plays in society using its assets, skills, people, products and services. It is bespoke to that organisation or brand, central to its future and boosts its commercial success.
It should be true both to its unique past and to its unique future.
It should maximise all company resources whether human or material.
It should measurably increase competitiveness and ROI, and be championed and led by the CEO and the Board, engaging with the wider organisation.
It will only have significant impact if it’s a guide to daily decisions and behaviours and inspires innovation.
WHY DOES PURPOSE MATTER?
40% of a company’s reputation
is determined by its Purpose, 60% by its performance
Source: Penn, Schoen & Berland Study, 2011
Companies that consistently manage and measure their responsible business activities, outperformed their FTSE 350 peers on total shareholder return in 7 out of 10 years
Source: FTSE/ BITC 2013
61% of business leaders say
that integrating Purpose
creates value in the short-term, as well as over the long run
Source: E&Y Study of 1500 global business leaders, 2017
21% of the UK workforce are actively disengaged. The cost in lost productivity caused by those who are actively disengaged amounts to £3,400 per £10,000 of salary. In the best managed, most purposeful companies in Gallup’s global database, as many as 70% off employees are actively engaged
Sources: Gallup, State of the Global Workplace 2017; Follow this Path, Goffman and Gonzalez-Molina
BCG analysis confirms that Purpose-driven organisations achieve better business performance.
Source: BCG Report, 2017
Recent research demonstrates that organisations with both a strong corporate Purpose and high management clarity around where the organization is headed, display increased financial performance, and this relationship is largely driven by middle management.
Source: Columbia Business School 2016: Corporate Purpose and Financial Performance
Unilever’s brands that have a consumer-recognised Purpose are growing 30% to 50% faster than their other brands and were responsible for 60% of their growth in 2016
Source: Unilever, 2017
An ever-growing bank of our Purpose Heroes: companies, charities and governments from different sectors and around the world who are hitting it out of the stadium when it comes to Purpose. Here just a few examples.