For many businesses and organizations, the top priority is often profitability. However, as a new generation rises during civil unrest and a pandemic, we are beginning to see the spotlight shift to a focus on purpose-driven values.
Public expectations are higher than ever, and many consumers want to see companies make a positive impact on society. Breaking through and building a reputation grounded in purpose takes time, but it creates stronger customer loyalty, increases employee engagement, and can help protect a brand’s reputation.
In a recent PR council webinar, I had the chance to learn about why purpose is critical for a company’s success in today’s culture. With the current attention to social injustice and systemic racism, businesses have an opportunity to not only speak out about fairness and equality but create meaningful action to change our society.
We’ve seen companies step up to the plate, such as Ben & Jerry’s statement addressing white supremacy, and this is only the beginning of a collective shift to a transparent two-sided dialogue between brands and their consumers. As an ice cream company created to eliminate injustices in communities, Ben & Jerry’s has created a page dedicated to highlighting the issues they are fighting to change.
But that is not all they’re doing. For instance, one of the issues they care about is climate change. They understand that the greenhouse gas released when producing ice cream is significant, so they’ve worked hard over time to have reduced their emissions. They’ve also set climate goals across their entire value chain. This is a great example of not only talking the talk, but also walking the walk to carry out their claims.
Finding and defining purpose boils down to being authentic and seeking out opportunities to make an impact larger than simply driving revenue. Purpose should remain one of the core values of an organization and can have a far-reaching impact on the following:
Drives Customer Loyalty
Today’s customers base their purchases not just on a product, but on the background and reputation of a brand. Many consumers take the extra step to decipher how brands reflect their stated values within the community.
Enhances Engagement
Employees are much more motivated to work for companies whose values align with their own. Some 76 percent of employees state that working within a strong company culture promotes their productivity and efficiency. Performance often improves as they not only want to be apart of a successful company but to help guide the change in society they desire.
Protects a Brand’s Reputation
In a time of crisis, performance is not just evaluated by revenue, but rather how a company’s leadership team makes decisions that are equitable and addresses the interests of employees, customers and other stakeholders.
Leading with grounded and purpose-driven communication is one of the many ways to come out of a sticky situation with confidence that it was managed properly. For more on crisis communication and the importance of fairness, please check out “Understand Trust and Why It Matters.”
Today, many companies must take the first step to look inward, examine their values and make sure they align with their stakeholders.