5 reasons why purpose-driven companies are more successful

Purpose = “an aspirational reason for being which inspires and provides a call to action for an organisation and its partners and stakeholders and provides benefit to local and global society”

This week we added our purpose statement to our website.

OUR PURPOSE
To influence the way we teach, train and learn
In order to better prepare humanity for tomorrow’s workplace

So what? You might say.

It’s been in the back of our minds since the start of our GWOF journey and we’ve decided that since we feel so strongly about making a positive difference to education, we should share our intentions with the world.

Here are just a few reasons we think it’s important:

1. Consumers now expect transparency, authenticity and high standards of ethical conduct

Digital media leaves no space to hide. I personally have a cluster of companies that I follow on social media purely because I believe in who they are and what they stand for. I noted down an interesting quote recently from a company called Hiut – if you haven’t heard of them, it’s worth a look: “We use our yearbook to tell people how we think, as much as we want to tell people what we make”.

2. By having a clear purpose, you will get (and keep) the best employees

Employees want to work for organisations they aspire to be a part of. A recent study showed that employees are 1.4 times more engaged, 1.7 times more satisfied and 3 times more likely to stay in a job if they work for a company that has a strong purpose (The Energy Project, What is Your Quality of Life at Work).

3. Employees will be more happy and creative

It’s simple; employees who derive meaning and significance from their work will be more motivated. We’ve written a lot about motivation over the past few weeks; here’s one of our favourite posts.
4. A clear purpose will help you to attract and retain customers

Customers LOVE to see a human element behind a brand. I will always choose to buy a product from one company over another if I know their story, particularly if there is a larger agenda than just selling a product for profit.
5. Companies with a purpose beyond profit tend to make more money

Having a social purpose is inextricably linked to a company’s ability to maintain its profits. Did you know that a study between 1926 and 1990 showed that companies guided by a purpose beyond making money returned six times more to shareholders than explicitly profit-driven rivals?

What is your company’s purpose and does everyone in the company have values in line with it?

(The photo is of Yvon Chouinard, founder of Patagonia, which is exemplary for its environmental purpose. Their mission statement is ‘Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.’)

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