Establishing brand purpose is essential for businesses. The benefits of a well-defined brand purpose can include motivating employees, streamlining marketing and encouraging more deliberate decision-making. During the last few weeks, I’ve been collecting studies and white papers from various sources supporting brand purpose and a not-only-for-profit business model.
As Part Three of my Summer Finds series, I’m sharing three statistics you should know about the growing relevance of a more purposeful approach to business:
- 80 percent of customers and employees believe businesses have a responsibility to make a positive impact on society. (Salesforce Research)
- 76 percent of millennials consider a company’s social and environmental commitments when deciding where to work. (2016 Cone Communications Millennial Employee Engagement Study)
- 81 percent of CEOs interviewed believe purpose-driven firms deliver higher quality products/services. (EY Beacon Institute)
So what do these numbers mean?
First, consumers are telling companies that they must place a greater emphasis on social impact. A separate Global Nielsen study showed 58 percent of consumers are willing to pay more for a product if it was from a company known for being environmentally friendly and 56 percent are willing to pay more if the company is known for its commitment to social values.
Second, employees agree. I’ve read this in various studies and heard it from recruiters. Organizations that are already engaging in a meaningful way on social and environmental issues are better positioned to attract top talent. Looking beyond Millennials, you will also find similar themes among GenerationZ and Baby Boomers. Check out my recent post about GenZ here.
Lastly, I’m very encouraged that it appears the C-suite has taken notice. In fact, the same EY study shows CEOs believe that a strong sense of collective purpose drives employee satisfaction as well as customer loyalty. The notion that CEOs are embracing a more purpose-led approach to business means they are listening. But, more importantly, it means there is greater potential for the business community to take action to drive meaningful, positive and purposeful change.