Purpose is the foundation for everything your company is built on. It is your reason for existing as a company. It is the reason you do everything you do. Purpose is what guides the mission and vision of the company.
Purpose-driven companies have a clear, higher purpose beyond their profit, products and services. They inspire action and benefits others while adding value to society.
They know exactly who they are and why they are in business. It is the foundation for all they do.
Their purpose is the foundation for every choice they make and action they take.
What they do goes beyond making money. They stand for something much bigger.
The effects of a company having a clear purpose are wide and far-reaching. From increased productivity to increased revenue, sales and stock market prices, there are many research studies and statistics that back the importance of a company having a purpose.
Some statistics regarding purpose-driven companies:
85% of purpose-led companies had 10% growth or more over a 3-year period vs 42% of non-purpose-led companies having flat or declining revenue
40% average higher level of confidence and trust in stakeholders, employees, and customers
consistently outperform the S&P 500 by 14 times
200% more productive employees
25-50% reduced employee turnover rate
50% of consumers buy based on their beliefs and 73% will switch to brands that support a good cause
23% of buyers say they would pay a 25% premium for brands that support their beliefs
51% of buyers would be loyal to a brand that spoke up on a social issue rather than than staying silent, and 48% of buyers would advocate for and defend such a brand
67% of buyers would buy a brand for the first time based solely on its position on a controversial topic
Click here for a downloadable PDF explaining the importance of purpose in business.
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