Research & Infographics
Curated by SIGNIFICANCE
Purpose Driven Marketing Research Document Excerpts
2018 Cone/Porter Novelli Purpose Study: How to Build Deeper Bonds, Amplify Your Message and Expand Your Consumer Base
"Purpose-driven companies will gain competitive differentiation across a variety of decisions — the first of which goes straight to a company’s bottom-line. Nearly nine-in-10 (88%) Americans say they would buy products from a company leading with Purpose. Other important benefits range from that company’s license to operate to its ability to garner top-tier talent. Eighty-five percent of Americans say they would be likely to support a Purpose-driven company in their community while more than two-thirds (68%) say they would want to work for that company. Finally, more than half (54%) would want to invest in a company that strongly articulates its role and value in society.
Why are Americans compelled to support Purpose-driven brands? It helps them feel that they are making a personal difference. In fact, eight-in-10 (80%) consumers say when they buy products or services from Purpose brands, they feel like they are doing their part to make a positive impact as well."
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"More than three-quarters (78%) of Americans believe it is no longer acceptable for companies to just make money, they expect companies to positively impact society as well. This demonstrates that companies can not only be a powerful force for good — it’s simply an expected way of doing business today."
"Purpose isn’t elitist or only for the B-Corps of the world. It is multifaceted, with many different ways for companies to authentically live and express their Purpose. When asked in what ways it was important for companies to articulate their Purpose, Americans felt companies should start from within. Most important was that the company operates in a way that benefits society and the environment (89%) through responsible business practices. However, nearly as important was having a North Star and strong values that guide how a company positively contributes to society. But they need to see it to believe it. Americans also want to see how companies are showing up and making a difference in their communities and in their communications."
"TOP WAYS AMERICANS FEEL COMPANIES SHOULD DEMONSTRATE THEIR PURPOSE:"
- "89% Corporate Social Responsibility: Operating in a way that benefits society and the environment"
- "85% Purpose Brand Strategy: Having a strong belief or commitment that guides how the company positively contributes to society"
- "85% Social Impact: Supporting causes in communities and around the world"
- "71% Brand Communication: Connecting to consumers emotionally through issues they care about"
"WOMEN ARE MORE LIKELY TO WANT COMPANIES TO ADDRESS SOCIAL JUSTICE ISSUES COMPARED TO THEIR MALE COUNTERPARTS (85% VS. 73% MALE)."
"WOMEN FEEL A STRONGER EMOTIONAL CONNECTION TO PURPOSE-DRIVEN COMPANIES COMPARED TO MEN (78% VS. 66% MALE)."
"AMERICANS FEEL A DEEPER BOND WITH PURPOSE-DRIVEN COMPANIES"
- "79% SAY THEY WOULD BE MORE LOYAL TO A PURPOSE-DRIVEN COMPANY"
- "77% SAY THEY FEEL A STRONGER EMOTIONAL CONNECTION TO PURPOSE-DRIVEN COMPANIES"
- "73% SAY THEY WOULD BE LIKELY TO DEFEND A PURPOSE-DRIVEN COMPANY IF PEOPLE SPOKE BADLY OF IT"
- "70% SAY THEY WOULD BE PROUD TO BE ASSOCIATED WITH A PURPOSE-DRIVEN COMPANY (E.G., WEAR THAT COMPANY’S LOGO)"
- "67% SAY THEY WOULD BE MORE WILLING TO FORGIVE A PURPOSE-DRIVEN COMPANY IF THAT COMPANY MAKES A MISSTEP THAN A TRADITIONAL COMPANY"
- "67%SAY THEY BELIEVE PURPOSE-DRIVEN COMPANIES CARE ABOUT THEM AND THEIR FAMILIES MORE THAN TRADITIONAL COMPANIES"
"PARENTS ARE MORE WILLING TO TRY AN ENTIRELY NEW PRODUCT LINE FROM A PURPOSE-DRIVEN COMPANY THEY ALREADY SUPPORT (83% VS. 75% U.S. AVERAGE)."
"AMERICANS ARE LIKELY TO AMPLIFY A PURPOSE-DRIVEN COMPANY’S BRAND MESSAGE IN THE FOLLOWING WAYS:"
- "78% WOULD TELL OTHERS TO BUY PRODUCTS FROM THAT COMPANY"
- "76% WOULD TELL FRIENDS AND FAMILY ABOUT THAT COMPANY"
- "73% WOULD SHARE INFORMATION OR STORIES ABOUT THAT COMPANY"
- "65% WOULD ADVOCATE FOR ISSUES THAT COMPANY SUPPORTS"
"NEARLY NINE-OUT-OF-10 PARENTS (89%) FEEL IT IS IMPORTANT FOR THE FOOD AND BEVERAGE INDUSTRY TO HAVE AND COMMUNICATE A STRONG SENSE OF PURPOSE (89% VS. 81% U.S. AVERAGE)."
"AMERICANS FEEL THE FOLLOWING INDUSTRIES MUST HAVE AND COMMUNICATE A SENSE OF PURPOSE:"
- "87% HEALTH & WELLNESS"
- "81% FOOD & BEVERAGE"
- "81% TECHNOLOGY"
- "79% MANUFACTURING"
- "78% AUTOMOTIVE"
- "77% RETAIL"
- "77% FINANCIAL SERVICES
- "76% PROFESSIONAL SERVICES"
- "76% FOOTWEAR & APPAREL"
- "78% AUTOMOTIVE"
"Purpose is more than a trendy buzzword or shiny new tool in a marketer’s arsenal, it is a way of doing business that is deeply embedded into the business, brand and experience that is delivered. It’s a North Star, a guiding principle and strong message to the marketplace. Companies that lead with Purpose will find it opens doors to an entirely new level of consumer relationship. The 2018 Cone/Porter Novelli Purpose Study proves that businesses that lead with Purpose can build deeper bonds with existing consumers, expand the consumer base and enlist these advocates to further amplify the brand message."
The State of the Debate on Purpose in Business - EY Beacon Institute
"Mounting evidence suggests that a growing number of employees, customers, investors and governments care almost as much about a company’s motivations as its actions — and executives are taking notice. After decades during which the dominant dogma focused on maximizing shareholder value, many CEOs and their teams are now trying to achieve more. They still do all the things business leaders have always done — serve customers, manage employees and produce results for investors — but a growing number are pursuing these actions in the context of a larger, overarching purpose. They are seeking to create value with and for the many stakeholders their business touches — and the physical environment in which they operate."
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"Drawing on this research and insight, we present five aspects of how purpose can bring greater strategic impetus and be a guiding force for corporate transformation and long-term value creation:"
- "Purpose instills strategic clarity. In the face of continuous transformation, intense competition and rising expectations, executives describe purpose as a strategic “North Star,” a guiding light for short-term decisions and long-term strategy at every level of an organization. A clearly articulated purpose can move a company forward, not just in what they do but how they do it. It helps leaders think about systems holistically, rather than by silo — a habit that suits today’s flatter, more global, more diverse and more intrapreneurial organizations."
- "Purpose channels innovation. By focusing innovation on a compelling “bigger picture,” purpose encourages everyone, from R&D to customer-facing staff, to think beyond incremental product or service improvement. By offering a long-term perspective, purpose is an antidote to short-termism. It empowers people to look for solutions and innovations that will deliver durable value and returns. At the same time, it sets clear boundaries on the space the company wants to operate in, keeping innovative energy focused on what matters."
- "Purpose is a force for and a response to transformation. Purpose motivates people through meaning, not fear, thus providing a more effective basis for driving successful transformation. It clarifies the desired long-term outcome, allowing people to understand the immediate need for change rather than feeling alienated by change that is “imposed” upon them. At the same time, purpose is also in itself a response to societal pressures on business to transform, to address global challenges and to take a longer-term, more comprehensive approach of growth and value."
- "Purpose builds bridges. Purpose makes it easier for companies to create alliances. Whether the goal is crossindustry collaboration on carbon reduction or an industry movement for fairer trade, companies can compare their potential for collaboration with a particular group or another business by looking for common ground in their purposes. Internally, too, purpose helps individuals and teams to work across silos in order to pursue a single, compelling aim."
"Clear, compelling and a North Star by which to navigate
complexity, purpose can bring many advantages. So what’s the
catch? Our review suggests that many companies have a hard
time embedding purpose in their strategic decision-making
To activate its purpose, a company must integrate it across the organization, incorporating it into how it develops strategy, measures performance and engages key stakeholders. Though each task on its own is a tremendous effort, businesses may need to do these — and more — to thrive, while meeting the demands and challenges of the 21st century."
Korn Ferry - People on a Mission
Purpose drives performance. Period.
By putting their core purpose at the fore, organizations are driving performance in measurable ways—in their finances, employee engagement, and customer satisfaction. Doing good means doing well. Purpose driven companies have four times the compound annual growth rate of companies in the S & P 500 Consumer Index.
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Purpose drives performance. Period. Individuals with a clear personal purpose draw on their deepest energies and perform to the best of their abilities. When an organization has a clear purpose, it unleashes the power and drive of the entire workforce, harnessing and focusing that combined effort in one aligned direction.
The results are impressive, with multiple studies indicating that purpose-driven organizations generate superior performance, greater stakeholder satisfaction, and increased sustainability:
- Such organizations in the consumer sector achieved a compound annual growth rate of 9.85% compared to their peers’ rate of 2.4% in the S&P 500 Consumer Sector from 2011 to 2015, Korn Ferry has found.
- 90% of executives say a commitment to purposedriven leadership produces long-term financial benefits (Korn Ferry Hay Group Survey 2016).
- Purpose-driven companies with humanistic values outperformed the S&P 500 by 14 times over 15 years (Sisodia, Sheth, and Wolfe 2007).
- A “strong, well-communicated purpose” can contribute up to a 17% improvement in financial performance (Burson-Marsteller and IMD Business School 2015).
- Workers with a “purpose orientation” report greater job fulfillment, “do significantly better” in their performance evaluations, and are much more likely to promote their employers to others (Imperative and New York University2015).
2016 Workforce Purpose Index – "Purpose At Work" - The Largest Global Study on the Role of Purpose in the Workforce by Imperative & Linkedin
"Professionals spend a majority of their hours awake at work, and yet 2 out of 3 are disengaged in their jobs. Only 30% of the U.S. workforce reports being actively involved, enthusiastic, and committed to their work. There has never been a more crucial time to connect people with their purpose."
"Companies that understand the increasing emphasis of purpose in today’s professional landscape improve their ability to attract such employees and also their ability to retain them for longer periods of time." - Reid Hoffman Executive Chairman and co-founder LinkedIn
"Need proof? We did an internal analysis on the role purpose plays in our workforce. At LinkedIn, our purpose-oriented employees have higher levels of engagement and fulfillment with their work. They outperform their peers in every indicator, including expected tenure and leadership competencies like self-advocacy and comfort with senior leadership.”
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“Purpose Brings Profits: Connecting employees with purpose brings measurable business impact. Research from the E.Y. Beacon Institute and Harvard Business School shows that companies that lead with purpose are more likely to be profitable.”
“58% of companies with a clearly articulated and understood purpose experienced growth of +10% vs. 42% of companies not prioritizing purpose.”
“% of NON-purpose led companies that showed DROP in revenue 42% vs. % of PURPOSE-led companies that showed POSITIVE growth 85%”
“This correlation of satisfaction at work and purpose orientation was consistent in virtually every country and industry studied. Purpose is a motivator regardless of differences in region, culture, language, and occupation.”
“In 2015, Imperative, a purpose consultancy, worked with New York University to conduct research on purpose-oriented talent in the U.S. They defined purpose-oriented employees as people who see work as about personal fulfillment and helping other people. They compared this group to non purpose-oriented people, who see work as solely a source of income or status. They found that purpose-oriented employees scored higher than the non purpose-oriented employees on every measure studied.
- 64% higher levels of fulfillment in their work more
- 50% likely to be in leadership positions
- 47% more likely to be promoters of their employers
- Plus, results didn’t find any meaningful differences in purpose orientation by race, ethnicity, or income. Companies prioritizing diversity initiatives, take note!”
“Purpose taps a universal need. It serves as a motivator despite cultural differences – uniting everyone to contribute to something bigger. ”
“Purpose-driven companies get more engagement on LinkedIn. Beyond that, LinkedIn members want jobs that offer a sense of purpose. 74% of members place a high value on finding work that delivers on a sense of purpose. 3.5x more company followers per employee 33% better InMail acceptance rate 117% more LinkedIn Company Page views per employee.”