purpose insights - Axiom of Purpose

The Proof is in the Purpose

Business for good is good for business

by Revekka Balancier | Dec 31, 2024

In an era defined by rapid technological advancements, heightened consumer awareness, and a growing global consciousness, the traditional model of business for profit alone is no longer sufficient. A new paradigm is emerging, one where businesses are expected to not only generate profits but also contribute positively to society and the environment. This shift, known as purpose-driven business, is gaining momentum at an unprecedented rate.

The Bottom Line: Purpose Pays

The financial benefits of adopting a purpose-driven approach are undeniable. A recent study found that purpose-driven enterprises experienced a staggering 1,681% growth rate over a specific period, far outpacing the S&P 500 average of 118%. This demonstrates that aligning business goals with a higher purpose not only enhances societal impact but also drives significant financial returns.

Moreover, brands perceived as having a high positive impact have seen their valuations surge by 175% over the past 12 years, compared to 86% for those with medium positive impact and 70% for those with low positive impact. This suggests that consumers are increasingly willing to pay a premium for products and services from companies that they believe are making a difference.

A New Generation of Conscious Consumers

This trend is particularly pronounced among younger generations. 84% of Gen Z investors aged 18-24 are either already invested in socially responsible and impact investments or plan to invest in the future. This indicates a growing preference for companies that prioritize social and environmental responsibility.

Additionally, 83% of US Gen Z job seekers consider a company's purpose when deciding where to work. For this generation, a meaningful career is not just about earning a paycheck; it's about contributing to a cause they believe in.

Navigating Disruption with Purpose

The integration of purpose into business strategy not only benefits stakeholders but also helps companies navigate the challenges of a rapidly changing world. 75% of executives of purposeful companies report that purpose creates value in both the short and long term. This suggests that having a well-defined purpose provides a strong foundation for making strategic decisions and adapting to unforeseen circumstances.

Furthermore, 73% of business leaders believe that a well-integrated purpose helps their companies navigate disruption. In an era of increasing uncertainty, having a clear sense of purpose can provide a guiding light, helping businesses stay focused on their core values and make decisions that align with their long-term goals.

Embracing the new purpose paradigm

The evidence is clear: purpose-driven business is not just a feel-good trend; it's a strategic imperative. By aligning business goals with a higher purpose, companies can drive financial growth, attract top talent, build strong relationships with customers, and contribute positively to society. As the world continues to evolve, the need for businesses to operate with purpose will only become more pressing. Those that embrace this paradigm shift will be well-positioned to thrive in the years to come.

Unleashing the power of purpose

purpose insights

How we get from enterprise to social enterprise

by Revekka Balancier | Nov 5, 2024

We have been watching the business landscape evolve, as consumers are increasingly drawn to brands that go beyond profit and embrace a deeper purpose. This shift presents a unique opportunity for traditional businesses to transform into social enterprises. It does not mean businesses are becoming non-profits - but it does mean that businesses can create positive change while fostering their own success.

So how does a business shift to become a truly purpose-driven organization? Let's explore some examples of how everyday businesses can unlock this potential:

Coffee shop to community hub:

Imagine a coffee shop that doesn't just serve lattes, but also serves up second chances. By employing recovering addicts and hosting recovery meetings, they become a beacon of hope and support. This creates a loyal customer base who values their commitment to social good, while offering valuable work experience to those rebuilding their lives. Every person who buys coffee is contributing to the recovery effort, particularly when the coffee shop’s purpose is infused into the environment, the website, the menu… there are so many opportunities to include this message so that every customer can be part of the extended recovery community.

Accounting for a more equitable future:

An accounting service can become a champion for minority-owned businesses by offering reduced start-up costs and scaling support that grows with the business. This model empowers underrepresented entrepreneurs who need quality help with critical bookkeeping and tax preparation for long-term success. It also creates a more diverse economic landscape by focusing support on communities of color to ensure every business has the opportunity to thrive. This also fosters long-term client relationships built on trust and shared values. There is no doubt that as these minority-owned businesses become more successful, they will continue to rely on the trusted partners who helped them achieve their success.

Martial arts for empowerment:

A martial arts studio can become a haven for domestic violence survivors. By offering self-defense training specifically built around the needs of post-traumatic stress disorder brought on by abusive relationships, they equip individuals with tools to protect themselves in the future, while fostering a supportive community that builds confidence and helps survivors find their voices. This can create a powerful ripple effect, empowering individuals and raising awareness about a critical social issue. And by infusing this important language into the messaging of the martial arts studio, there is an opportunity to address the stigma of domestic violence at the same time.

These are just a few examples, but the possibilities are endless. Every enterprise, no matter its size or industry, can embrace a purpose-driven model. It's not about reinventing the wheel, but about aligning your business practices with your values and creating a positive impact within your community.

Cleaning business with a green thumb:

A cleaning business can become an eco-warrior by switching to eco-friendly products. This not only reduces their environmental footprint, but also attracts customers who prioritize sustainability. They can also offer adjacent services like household hazardous waste removal to ensure there is no chance those items end up in landfills. They can further amplify their impact by partnering with environmental organizations for educational workshops or clean-up events. By infusing sustainability into their products, extra services, messaging, and volunteer activities, they make a statement about being unequivocally committed to the planet. Then individuals and businesses who feel the same are more likely to select them as their cleaning business of choice!

Ready to start your purpose-driven journey? Here are some key steps:

Identify your passion: What social issues are close to your heart? Or perhaps you are passionate about the planet and sustainability? What skills and resources can you offer to make a difference?
Define your impact: How will your business activities contribute to solving the problem? What measurable outcomes will you track?
Integrate your purpose into your business: We have a blog on this! Read Aligning with your Purpose: A roadmap to living your values for tips on how to integrate your purpose into your daily business operations.
Engage your community: Partner with local organizations, involve your employees, and create opportunities for customer and community participation.
Spread the word: Share your story, showcase your impact, and inspire others to join the movement.

The journey of becoming a purpose-driven social enterprise is an ongoing process. Be patient, adapt, and celebrate your progress. By embracing purpose, you can create a business that not only thrives, but also leaves a lasting legacy in the world that you can be proud of.

Let's start a conversation!

People want purpose!

purpose insights

Why brands need to go beyond business as usual

by Revekka Balancier | Aug 6, 2024

The days of solely chasing profits are fading faster than Twitter. Younger generations demand more from the brands they interact with. They crave purpose, authenticity, and a commitment to making a positive social and environmental impact.

Looking for some proof of that? You’ve come to the right place!

More than a decade of statistics speak loud and clear:

91%

of millennials

would switch brands to one associated with a cause

In Why 9 out of 10 Millennials Will Switch Brands Bill Sharpe of Simmons Sharpe makes the case for purpose-driven marketing as smart marketing - not just for boutique brands, but for major advertisers in major markets, backed by research and data.

84%

of people

globally would “tell friends and family” about a company’s CSR efforts

The Cone Communications/Echo Global CSR Study delves into the global perspectives and expectations of consumers in different countries around the world when it comes to social and environmental impact.

Key takeaway:
Corporate social responsibility is no longer an option — it is emphatically and indisputably a must-do.

74%

of Americans

said how companies behaved during the protests would affect their desire to purchase from them in the future

This statistic from the GFK Consumer Pulse Study of 2020 shows how the murder of George Floyd in 2020, the ensuing protests and the rise of the Black Lives Matter movement further amplified the public’s demand for organizations to take a stand. We have since seen a growing demand for corporate accountability, transparency and action on a variety of social issues

74%

of consumers

believe companies can take actions that both boost profits and improve economic and social conditions for their local communities

The Business of Purpose - Statistics page has a wealth of information for anyone who needs more proof that purpose pays off - in more ways than feeling good about your work (which shouldn’t be underestimated!).

As they put it:
A highly curated collection of stats and numbers to showcase purpose-driven business’ juicy return on impact. To get even more inspired, or convert that one Board member stuck in yesteryear.

70%

of millennials

would be willing to pay more for a product associated with a cause they care about

This Matchable article, Millennials are shifting CSR from Bonus to Necessity, does a great job outlining the bigger picture of social responsibility. It is not just about keeping market share. It is about attracting talent, 64% of Millennials say they would not accept a job at a company they deem to be not socially responsible, employee retention, and overall reputation. People are paying attention, and they care.

65%

of GenZ women

expect brands to actively support causes important to them

Purpose-Driven Brands Lead on Business Performance from GFK notes countless studies have now reinforced the link between purpose-driven brands and business performance.

“Companies absolutely must be mindful that social responsibility is now key to attracting and retaining customers,” says Gonzalo Garcia Villanueva, Global Chief Marketing Officer at GfK. “Most organizations are finally realizing that social-impact initiatives are not just good for the world, but also for business. Consumers are increasingly driven by social conscience and they also want to buy from brands whose values they see themselves reflected in.”

These numbers aren't just trends; they represent a cultural shift.

In A call for accountability and action: The Deloitte Global 2021 Millennial and Gen Z Survey 55% of survey respondents agreed society is “at a tipping point and there will be positive change from this point forward” on the issue of racial discrimination. This optimism suggests that consumers are ready to support brands that are actively contributing to solutions.

People are no longer satisfied with simply buying a product or service. They want to connect with brands that share their values and actively work to make the world a better place.

And it is not just the purpose-driven converts seeing the value of social impact. Forbes is well-known for recognizing riches, regularly distributing lists of global billionaires. Now even Forbes cannot ignore there is value in purpose. In their article Silence Is Not An Option: Research Shows Consumers Expect CEOs To Take A Stand On Political Issues they note that 35% say they’re more likely to trust brands when they take a stance, with 43% favoring companies that do so on social, environmental and political issues.

So, what does all this mean for organizations?

It means it is well past time to move beyond profit as the driving force of what “business” means. Here are some ways to make these statistics actionable:

Define your purpose: What does your brand stand for beyond just selling products? How do you make a positive impact on the world?
Be authentic: Don't just jump on the bandwagon. Ensure your purpose aligns with your core values and resonates with your target audience.
Stand on purpose: Don't just talk about it, be about it. Check out Aligning with your purpose: a roadmap to living your values for ideas on how to integrate your purpose into every aspect of your organization.
Be transparent: Share your progress, challenges, and impact openly and honestly. Build trust with your audience by showing them you're walking the walk. Don’t be afraid to be vulnerable and allow your audience to join you on your journey.

Purpose isn't a marketing ploy; it's a way of life. By embracing purpose and making it the core of your brand identity, you can connect with consumers on a deeper level, build loyalty, and contribute to a more positive future.

Now is the time for organizations to integrate purpose into their business model, brand and all marketing and communications efforts. Let us know if you’d like to chat about how to get started.

Optimism in marketing

purpose insights

The case for hope

by Revekka Balancier | Jul 23, 2024

In a world often saturated with scare tactics and negativity, marketing that leans on hope and optimism can stand out like a beacon in the fog for a ship in the night. But why choose the sunny path when fear and scarcity seem to do the trick? Well, perhaps short-term we win a sale, a conversion, or some desired action with high pressure or FOMO. However, to build a brand - and a better world - we want to think about how we win lifetime support.

Let's dive into the "What's Out" vs. "What's In" of marketing with a positive “spin” and why it’s time to let the negativity sleep with the fishes.

What's Out

What's In

Pessimism

Dwelling on problems creates discord, leaving your audience feeling discouraged and unlikely to engage.

Optimism

Hopeful messaging feels good! It fosters engagement and ignites the imagination, allowing your audience to picture a brighter future with your product, service or message as a part of it.

Scare Tactics

While fear can trigger an immediate response, it's manipulative and breeds distrust. People want authenticity, not forced action.

Inspired Choice

Instead of forcing action, present opportunities for positive change. When empowered to make a difference, and given the option to do so, people are more likely to choose your brand.

Sad Statistics

Statistics can inform, but overwhelming people with negativity comes with the risk of pushing your audience toward inaction instead because they are left feeling hopeless

Good News

Social norming research shows that sharing success stories and positive statistics about others making a difference, motivates your audience to join the movement.

Negativity

Associating your brand with negativity isn't exactly a winning strategy. We want your audience to feel empowered, not drained.

Positivity

Leave your audience feeling energized and invested in a shared purpose. Let your brand become synonymous with positive change to create a loyal following.

Tips for implementation

Authenticity is key.

Don't force positivity just for the sake of it. Be genuine in your message and the optimism will resonate. Authenticity is when your beliefs, your words and your actions are all in alignment - everyone feels it.

Balance is important.

Acknowledge challenges, but focus on solutions, the progress made and the potential for continued change. The backlash against “toxic positivity” happens when people or brands ignore very real issues. It is critical to both acknowledge the current state and still stay optimistic about the future.

Data supports optimism.

Studies show positive messaging is more effective in driving engagement and sales, particularly with a side of social norming. Essentially, making the case that this is the new normal. Use real statistics to back up your message.

So, choose hope! Embrace the power of optimism in your marketing, and watch your audience respond with enthusiasm and inspired action. Let's create a brighter future, together.

Shedding the bottom-line mentality

purpose insights

Out with profit-obsessed; In with purpose-driven

by Revekka Balancier | Jun 25, 2024

For many businesses, for many years, the bottom-line has reigned supreme. Every decision, every action, has been tethered to the pursuit of profit. Axiom of Purpose is built on the belief that there is another way. That success can be measured not just by dollars and cents, but by the positive impact we create and the lives we change for the better.

We are on a mission to build a coalition of believers. People who believe we can shed the bottom-line mentality and embrace a more holistic approach to business and government. We are shifting the focus from profit to purpose, from scarcity to abundance, from fear to fulfillment.

Here's how we do it:

1. Impact is the new black

Move beyond "does it make money?" to "does it further our purpose?" Let purpose be your guiding star, driving decisions that create positive change for your community, customers, and the world. We shed the bottom-line mentality when asking about purpose is the first question and primary decision driver.

2. Profit is not a master

Ditch the industry standards for profit margins. They're benchmarks, not bibles. Define what "success" means for you and set your financial standard accordingly. Covering your expenses is important. Cash flow is important. Taking care of your people is important. Is having a specific percentage on top of all that really as important? What is that percentage? Decide what is comfortable for you and don’t worry about what some book, some expert or some spreadsheet says is the ideal margin.

3. Equitable pricing for equitable outcomes

Reimagine your pricing model. Could you offer tiered pricing based on the budget of those you most want to serve? This makes your offering accessible while ensuring sustainability. Is the market pricing out an audience segment? How can you serve them at a price point that makes sense for them and you and fill in a service gap? For example, small business start-ups don’t often get accounting help until they are in a better position financially. However, then it costs more because their books are a mess. If you are an accountant, can you set up a scalable system for a small business to take advantage of and offer it at a price point that solopreneurs can afford?

4. Measure beyond the bottom line

Profit matters, but it's not the whole story. Are you creating impactful work? Are you making a positive difference? Are you proud of what you do? These, too, are metrics of success. You have the power to create your own metrics and decide what success means to you. Maybe it's employee well-being, community engagement, client relationships, social impact outcomes or environmental sustainability goals. Build your spreadsheets and dashboards to include these metrics and look at them together.

5. Value what matters most

What truly matters to you? What values do you want your business to embody? Communicate these values clearly to your staff and create a work environment where everyone feels valued and appreciated. I once read that if you are living your values, you do not need them all over your walls. Everyone will already know them because you embody them in your actions everyday. That has always stayed with me.

6. Fear not, abundance awaits

Allow purpose and mission to guide your decisions rather than fear. We often let fear-based decision-making drive us away from opportunities. Fear of scarcity, failure, or judgment can hold us back. Instead, approach decision-making with a mindset of abundance; trust that there's enough success and opportunity for everyone. Faith in our purpose and our future are the antidote to fear.

Shedding the "bottom-line mentality" isn't about ignoring financial responsibility or throwing away profit. It's about creating a new business model rooted in purpose and shared well-being. It means we are expanding our definition of success, prioritizing purpose over profit, and building businesses that leave a positive legacy in the world. It's about cultivating abundance, not just in our bank accounts, but in the lives we touch and the impact we create.

The evolution of purpose-driven marketing

purpose insights

From sponsors to soulmates

by Revekka Balancier | May 14, 2024

In the old-school cut-throat arena of business, a silent transformation has been taking place. Gone are the days of brands solely vying for attention with flashy ads and fleeting promises. Savvy consumers today want more than a product; they crave connection, meaning, and a brand that reflects their values. This shift has given rise to the evolution of purpose-driven marketing, a journey where brands move from casual bystanders to active participants in making the world a better place.

Stage 1:

Community Sponsorships

The banners and t-shirt era

It all started with a hesitant wave. Companies dipped their toes into the waters of "doing good" by offering financial support to a variety of non-profits. Think donations for toy drives, sponsorships for local little leagues, and the occasional beach or park clean-up. While commendable, these efforts often lacked a focused direction, long-term impact or deeper engagement.

Stage 2:

Cause Campaigns

The annual affair

Recognizing the power of a dedicated cause, brands transitioned to championing specific issues like environmental sustainability or gender equality. These campaigns, often annual affairs, brought focus and visibility to chosen causes, leveraging marketing muscle to raise awareness and inspire action. While impactful, cause campaigns could still feel like separate acts from the core business and were limited in scope.

Stage 3:

Corporate Social Responsibility (CSR)

The budget line item

With CSR, purpose moved beyond occasional sponsorships and campaigns. Companies began allocating dedicated budgets for community engagement, integrating financial resources for social impact initiatives. From employee volunteer programs to ethical sourcing policies, well-done CSR marked a deeper commitment to responsible business practices. Yet, a gap often remained between these initiatives and the brand’s core identity.

Stage 4:

Environmental Social Governance (ESG)

The holistic lens

ESG arrived like a pair of keen glasses, sharpening the focus on how companies impact the environment, society, and governance. It's not just about giving back; it's about ensuring every investment and decision reflects the company's commitment to sustainability, ethical practices, and social responsibility. ESG brings purpose into the boardroom, influencing strategic decisions and shaping long-term goals. I’m impressed with organizations doing ESG right… but there is still another stage in this evolution.

Stage 5:

Purpose-Driven

The soulful fusion

And finally, we arrive at where we want to be today, where purpose is no longer an add-on or an obligation, but the very heartbeat of the brand. Purpose-driven companies don't simply support causes; they embody them. Patagonia fighting climate change through its products and activism. TOMS donating shoes with every purchase. Unilever championing sustainability across its entire supply chain. These brands weave their purpose into their DNA, infusing it into their brand story, culture, and every decision they make. There's no separation; the work they do is the work they do to make the world better.

The evolution of purpose-driven marketing is more than just a trend; it's a fundamental shift in consumer expectations and brand values. Today's consumers don't just buy products, they invest in futures they believe in. Today’s workforce doesn’t just want a paycheck, they expect a purpose they are inspired by. The brands that rise to the challenge, the ones who forge a genuine connection with their purpose and seamlessly integrate it into their being, are the ones who thrive through the ages.

Has your organization fully embraced purpose? We’d love to support you along your journey.

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