Purpose Beyond Profit: A Better Business Dynamic
The purpose -driven business is one that flourishes from the ground up, beginning with the individuals who make everything happen. Such companies embed purpose into every action and strive to provide products and services that have a positive impact on employees, customers, and communities. With dedication and resolve, they bring meaningful, sustained purpose to the organization.
The purpose of purpose
As the business world comes to terms with new ways of working — including virtual workplaces, dispersed workforces, flexible scheduling, and rising employee expectations — a cohesive organizational purpose is more critical than ever. For individual employees, a sense of shared purpose supports physical and mental wellbeing, reduces feelings of loneliness and isolation, and improves job satisfaction, engagement, and retention.
Organizations also benefit from an integrated purpose -driven strategy. A clear, consistent, and actionable purpose drives long-term value and creates competitive advantage. Consider the following examples:
Brand and reputation. 78% of consumers are more likely to remember companies that exhibit a strong purpose, and those brands are six times more likely to enjoy protection when confronted with negative publicity.
Sales and innovation. Sustainably marketed products, as opposed to their conventionally marketed counterparts, enjoy a price premium of nearly 40%, and 53% of surveyed CXOs report new revenue streams resulting from socially conscious lines.
Talent acquisition and retention. 78% of people prefer to work for a purpose -driven company. In fact, about 50% of employees — and 75% of millennial workers — express willingness to accept lower pay for the chance to work for a company committed to environmental responsibility.
As organizations deal with unprecedented market forces, and near constant change, from the pandemic and its repercussions, it’s increasingly clear that purpose is more than PR. It is directly tied to financial performance, competitive advantage, and the long-term creation of value — companies truly committed to their purpose — drive innovation, retain employees, and provide better leadership training opportunities.
What purpose is…and what it isn’t
"Purpose” has become something of a buzzword in recent years. But with the turbulent business and economic environment, and the shifting dynamic between employers and employees, a well-crafted purpose goes beyond buzz. It’s an expression of a company’s commitment to the quality of its product, its employee and customer experiences, and its impact on the world.
Purpose creates a foundation for creating strategy, guiding decision-making, and maximizing positive impact. So, what does a truly purpose -driven organization look like? When an organization is guided by a clear purpose, it becomes embedded in every part of daily operations. Employees who feel part of that purpose are set attainable, quantifiable goals that allow them to breathe it into the fabric of your business. And because purpose goes beyond traditional ideas of “doing business,” the purpose -driven company seeks to evolve and innovate — with customers, distributors, suppliers, and the whole of its business community.
As you focus on what purpose is, it’s also essential to recognize what it isn’t. Crafting a purpose statement is just one small step towards building a better business dynamic, but a statement alone is not enough. The most thoughtful, beautifully written purpose statement doesn’t automatically result in a positive, purpose -driven organization. To bring it to life, it must be backed by policy and action.
It’s important to remember that purpose doesn’t negate the desire for, or probability of, profit. Instilling a purpose beyond profit mentality doesn’t create obstacles to company growth or financial gain, it enhances it. In fact, employees and customers increasingly expect purpose -driven behavior from the companies they support, and those that do business without it risk both brand reputation and market share.
Doing business with purpose
Like so many factors affecting the viability and success of a business, a purpose -driven company begins with your workforce. Employees who find purpose in their work are more motivated, engaged, and productive —, and they experience higher levels of job satisfaction and loyalty. Not only that, but their employers outperform others by over 200%.
What does it take to create a purpose -driven workplace? Consider these key components:
Authentic leadership. Executives need a solid grasp on their purpose as leaders, and should take time to examine their own values, what they want for the future, and what they would like their legacy to be. Understanding the answers to these questions helps leaders articulate their own purpose and how to best apply it to their role within your organization.
Purpose over function. It’s important to differentiate between a job’s function — those tasks and responsibilities that define an employee’s role — and its purpose — why the role exists in your company and what makes it inherently important to company success. Leaders must learn to articulate your company’s mission and how it relates to each employee’s purpose.
Employee engagement. In the past, social purpose policies were often driven from the top down via charitable donations and executive initiatives. But recent years have brought a noteworthy shift. Today’s employees want to help shape their company’s purpose and values. To achieve more employee engagement, create opportunities for employee involvement in philanthropic initiatives that support and align with your organizational purpose.
Consistency. Once you establish your company’s purpose and take steps to integrate it into every aspect of your business — keep going. Continue to commit to your purpose and communicate progress to stakeholders clearly and often. Emphasize how your company’s mission and purpose affect your employees, customers, and communities, and encourage active and ongoing engagement.
Organizational purpose is a direct line to enhanced employee engagement, a superior customer experience, and a better business dynamic.
Define your company’s purpose, and do business better with fitch-consulting.com.