When talking to clients who have asked me to support them on their B Corp or better business journeys, we usually begin with the most important question of all;
Why?
Why do they want to better understand and improve their impact on their people, communities and the planet?
Why will it matter?
Then we start to chat about their business.
And the first question, yes you guessed, is; Why?
“Why does your business exist?”
Otherwise known as a Mission Statement, or a Purpose Statement.
I ask this as it’s an important part of the B Corp journey, and vitally, everything else flows from having a clear purpose.
It’s often the case that business leaders haven’t really given the issue much thought, and don’t know how to develop and communicate their purpose.
But once they do, it’s nearly always a bit of a lightbulb moment!
Once we clearly understand our ‘why’ – everything else makes sense.
Decisions are easier.
All stakeholders can feel connected to the organisation’s purpose and understands their part in achieving it.
Oh, and if you are wondering about the commercial imperative; purpose-led brands (unsurprisingly) are significantly outperforming those which aren’t.
I hope you find our insight on purpose interesting.
Best wishes,
Donna
Founder and B Leader
Recent studies show more than two thirds of consumers trust businesses more than governments and other public organisations to solve the world’s problems.
And increasingly, consumers are voting with their wallets and CVs to buy from and work for companies who have a clear purpose and have a positive impact on their people planet.
According to Kantar BrandZTM data, brands that people see as having a high positive impact on society have more than doubled their growth over the past 12 years when compared to brands that people see as having low impact.
Purpose is becoming a rite of passage for successful brands. But that doesn’t mean it’s easy to get right. Companies often confuse purpose with Corporate Social Responsibility (CSR).
Purpose isn’t just about doing the right thing, it’s about commitment, accountability, transparency, and authenticity.
Purpose is the foundation of your culture and should be embedded into every thread of your organisation.
It’s about walking the walk and continuous improvement.
When it comes to developing your purpose there are four key stages to consider:
Understanding and articulating your purpose
Articulating your purpose involves understanding the difference your company can make to your people, communities, customers and the environment.
A purpose statement clearly shows why your company exists. It’s your True North and communicates with all stakeholders your direction of travel.
Great purpose statements inspire, inform and enable your stakeholders to understand your culture, and should encourage them to support your aspirations.
Take a look at some great examples:
And of course, we should mention UK for Good – we’re very proud of our purpose – it drives everything we do.
Living your Purpose
A purpose comes to life when it is lived and breathed daily within an organisation. Purpose should permeate both the people, policies, and processes. Many businesses use the B Corp assessment tool (BIA) and the Sustainable Development Goals (SDGs) to help embed their purpose. Milk and Honey PR are a great example of this: Making a difference to their stakeholders and to the world.
Leading with Purpose
Brands that lead with purpose serve as visible champions and role models. As Simon Sinek (author of Start with Why) says: “Truly effective and inspiring leaders aren’t actually driven to lead people; they are driven to serve them”
As you progress along the path to achieving your purpose, your aim is to engage others and develop a movement of like-minded stakeholders who will support your aspirations and help you shape a better world.
Patagonia for example is helping people to live out its environmentalist purpose by providing tools and urging communities to take concrete actions.
The brand dedicates significant resources to empower those with a shared interest in environmental preservation. They have published a best-practices manual, “Tools for Grass Roots Activists,” created a take-action page on their website that encourages interested citizens to express their concerns.
If you would like to take a deeper dive on purpose, Oxford University Saïd Business School have recently published research. Read more here