What we do today – or don't – has direct consequences tomorrow. We see the "Post-Corona" economy as well as the dramatically advancing climate change as an opportunity.
As an opportunity for a new beginning; for a more sustainable future-oriented approach. Markets have to be shaped in new ways, strategies need to be newly defined. Brands need to reinvent themselves, take over more social and environmental responsibility and act as drivers of change. Unprecedented opportunities, which haven't been available in decades. It's on us to act now and shape the future.
The rapid disruption of society is making brand and organizational evolution more demanding than ever – learned patterns are not feasible any longer. A fresh approach is needed.
At KORE, our work is dedicated to demonstrating how the integration of purpose can enrich and boost our clients strategies, brands & organizations and ensure their "Zukunftsfähigkeit".
But are we talking about a "nice to have" or a business approach that is really moving the needle?
In our opinion, purpose is going to be as transformative to businesses as the arrival of digital was. And just like digital, it is a competitive edge that one can either embrace — or watch helplessly as competitors do.
Stand up to stand out. We are the partner for those who act in a value-oriented and active manner or want to do so in the future. For whom sustainability, diversity and participation are essential pillars. For those who make their strategies, brands and organization fit for the future by integrating Purpose. And who are thus aligning themselves to shape the future.
Henrik Henriksson,
CEO — SCANIA
A study from Porter Novelli finds that when comparing two brands, purpose can make a big difference.
When someone sees a logo of a brand they know is purpose-driven, they automatically associate it with words like "responsible", "compassionate", and "ethical". And when someone considers a brand purpose-driven, they’re also more likely to remember it, buy it, and want to work for the company that makes it.
The researchers gave participants a series of purpose-driven attributes and then asked what actions they’d take if a company had those qualities. More than three-quarters said they were more likely to trust the company. Seventy-eight percent were more likely to remember a company with strong purpose; seventy-eight percent were also more likely to want to work for the company.
Seventy-two percent were more likely to be loyal to the company, and seventy-two percent also said that they’d be more likely to forgive the company if it made a mistake.
Two-thirds said they'd consider the company's purpose when deciding what to buy, and said seventy-one percent they'd buy from a purpose-driven company over the alternative if cost and quality were equal. Sixty-two percent said that they thought it was important to consider purpose even when making an impulse buy.
Accenture Strategy's recent global survey of nearly 30,000 consumers in 35 countries found that 62 percent of them want companies to take a stand on current and broadly relevant issues such as sustainability, transparency and fair employment practices.
Companies that don’t align with customer beliefs pay the price:
42 percent of consumers walk away from the brand in frustration. One in five (21 percent) never come back.
The Harvard Business Review found that purpose helps "redefine the playing field" in a way that opened up new territories for growth, and "reshape their value proposition" in a way that broadened their mission, created a holistic value proposition, and delivered lifetime benefits to customers, all strategies that contributed to long-term growth.
Companies have long been encouraged to build purpose into what they do. But usually it's talked about as an add-on— a way to create shared value, improve employee morale and commitment, give back to the community, and help the environment. But as we worked with the high-growth companies in our study and beyond, we began to recognize that many of them had moved purpose from the periphery of their strategy to its core—where, with committed leadership and financial investment, they had used it to generate sustained profitable growth, stay relevant in a rapidly changing world, and deepen ties with their stakeholders.
A 20-year study by the Torrey Project explodes the myth that an ethical, stakeholder-driven approach to business cannot lead to shareholder returns by examining the long-term historical performance of different sets of companies including the S&P 500. After comparing these 4 sets of companies financial performance on the NASDAQ and NYSE over the past 20 years, they found that stakeholder-focused companies (Sisodia's Firms of Endearment) had the highest growth of all in stock price (100 percent higher than that of the S&P 500 over the same period).
Want to learn more about or discuss sustainability, purpose or purpose-focused brands & organizations? Just contact us for a direct exchange. We look forward to your questions & suggestions.
