The past 2.5 years have seen a major shift in the way businesses are run. Due to the pandemic and looming global recession, many businesses have had 2 options: adapt or fail. Although this can be said for most businesses around the world, there has been another shift in business practices that needs to be addressed: purpose-driven business & marketing operations. These companies are making a concerted effort to contribute in a positive manner to society. This long-term strategy is not only driven by small businesses, we are seeing a major adoption and push by corporations.

The playing field has changed and consumers have more power in the success of a business than ever before. Purpose-led companies have acknowledged this and pivoted accordingly. Society has pushed companies to place more emphasis on transparency, integrity, culture and this has led to a fresh approach to business. Long gone is the age-old saying ‘that’s the way business is done. That saying is as stale as a chip left outside for a couple of days.

Purpose-driven companies (although many are private) make efforts to better society. They revolve their business strategies towards helping the environment or people of the public. These companies take responsibility and accountability seriously - quite different to the way of the boomer business model - profits at all costs.

In this blog article, we will discuss why a purpose-driven business strategy is becoming more and more popular. We will showcase this through 4 businesses that are thriving due to their pivot towards purpose and how society is giving these brands the thumbs up.

The Increase In Popularity of Purpose-Driven Brands

Adopting a sense of purpose to the business structure is nothing new, it has been around for some time. But recently, with the proliferation of social media, consumer power and accessibility to information, brands have had to take a more responsible approach. In the past, many consumers felt constantly lied to and this caused a lack of trust between brands and consumers, especially with corporations.

Consumers also have the ability to share information without any hidden agenda. We have seen the power of influencers and how their genuine (not all the time) communication style has exacerbated the want for more transparency. People want to know how the product they are purchasing was made, how the materials were sourced and if the people that made it were treated fairly. Let’s not forget the climate change crises that have been blatantly ignored by many multinational corporations in recent years. These changes are creating change. Sustainability & equality are the talks of the town and it is everyone's responsibility to play their part in reducing their wastage, and consumption rate and improving the treatment of others.

A major reason why purpose-driven companies are increasingly popular nowadays is due to their business objectives. They are not only concerned about fattening the pockets of themselves and shareholders, they have put society and the environment first.

Here are 4 companies to keep an eye on - if you are an entrepreneur then take a few pages out of these brand’s handbooks. The below-listed companies are making a difference and they are getting serious brownie points for it too.

credit: who gives a crap

(1) Who Gives A Crap

Who Gives A Crap (great name) is an eco-friendly toilet paper that claims to be not only ‘good for your bum, but also for the world. Their products are 100% plastic free and have options of paper used such as 100% recycled paper or 100% bamboo. Not only are they ethically sourcing their materials, but they also donate 50% of their profits to build toilets for underdeveloped communities around the world. Double high-fives for this circular approach.

credit: patagonia

(2) Patagonia®

It is hard to write a blog article on purpose-driven brands without mentioning Patagonia. They pretty much wrote the book on purpose-led business strategy. They have been driving the purpose-led culture since the early 2000s & their purpose-led business was built from the inside out. Their core values, company culture, working policy and sourcing of materials - all revolve around environmental sustainability & employee growth. They are die-hards in their pursuit to make the world a better place. The best facets in their efforts are:

Repair & recycle campaigns: trade your old Patagonia gear in for something fresh (leads to less consumption)
Donations to charitable organizations: 1% of sales income or 10% of profits (whichever is higher)
Work/life balance: take off work when the waves are on + 4 day work week every fortnight (if you work a 9-hour work day)
Dedication to organic materials & support of these suppliers: transparency in the materials used + sustainability commitment (they lead by example)

credit: allbirds

(3) Allbirds

The fashion industry (in this example we focus on the shoe industry) is a massive contributor to environmental degradation. Also, the way shoes are made has long been in the spotlight regarding child labour & sweatshops. Allbirds has now entered the chat… Shoes made from tree fibres, wool and recycled plastic bottles are just one of the ways they contribute toward sustainability. They are also lightning quick (and creative) to provide a helping hand where need be - during the pandemic they donated USD$500,000 of shoes to medical professionals.

credit: lego

(4) Lego®

Lego - a company that built its empire literally on plastic has become one of the world’s leaders in the pursuit of purpose. They shifted their values and even ended a 50-year brand partnership with Shell as their environmental values no longer aligned. Lego has invested USD$400 million in its environmental & social initiatives as a means to make its packaging and core products from recycled or sustainable materials.

Profit Ain’t Gonna Cut It

The 4 mentioned brands are just the tip of the iceberg of the responsibility & sustainability initiatives that the business environment is adopting. Consumers are not interested in the profit-maximizing business approach of the past - it simply does not serve them. In fact, 7 out of 10 millennials consider a company's values when making a purpose (Forrester Research, 2018). As climate change, equality and values become the forefront of decision-making when it comes to purchasing behaviour we will see more adoption. Purpose-driven business strategy is certainly not at the finish line, perhaps more just out the starting blocks, which is exciting.

A Parting Note

It is safe to say that we all contribute to the growth of the sustainability & equality movement. Each of us has the power to make a difference, although that seems cliché. Our agency, Legs, builds purpose-driven brands that make the world a better place, this is our sole mission. If you have a business that would like to adopt a purpose business structure then get in touch. We have written a white paper that dives into more details about purpose and its place in society.

White Paper

Companies that are thriving with a purpose-driven strategy: 4 to keep your eyes on in 2022