INTELLIGENCE REPORT: THE VALUE OF BUILDING A PURPOSE-DRIVEN BUSINESS
We often hear that a sense of purpose is the most important attribute for a company to have, but what are the benefits of building a purpose-driven business? We asked the Gen.t community for their insights, based on four key statistics that illustrate why purpose matters
PATRICIA DWYER FOUNDER, THE PURPOSE BUSINESS
Purpose requires a different way of thinking about the economy and the role an organisation plays in it. The success of business isn’t just about profit maximisation, ie profit at all costs, harming the environment, people and society. Instead, purpose in business is about profitability—using products and services that serve the market through positive impact. Companies that operate with a clear sense of purpose perform better because they do good for society, all while being able to maximise the opportunities that present themselves.
LIM YUET KIM CO-FOUNDER AND CEO, PICHAEATS
Any business wanting to leave a legacy has a strong sense of purpose. It doesn’t matter whether it’s social or not. Apple had a strong sense of wanting to simplify people’s lives with sleek gadgets. Tesla had a strong sense of wanting to provide people an affordable, safe electric car that saves the environment. Everyone is more driven working towards a purpose that serves as a goal in the company. If the purpose is strong in the company, people who are drawn towards that purpose will work hard for it to happen.
120%
Brands with a purpose that involves improving the quality of people’s lives outperform the stock market by 120 per cent
ANGELA CHEN CO-FOUNDER AND CEO, ESKWELABS
Millennials and Gen Zs don’t see our work as a separate compartment of our lives. There is a level of authenticity that is expected, where the person we can be at work is actually us. This is why being a part of something that contributes meaningfully is an important outcome of our work. When we feel personally connected to the mission of the company, we are motivated to make things happen and go the extra mile. In turn, that makes these companies succeed.
90% SOURCE: LINKEDIN WORKPLACE CULTURE TRENDS
Nine out of 10 millennials will take a pay cut if it means working for a brand that aligns with their goals
LEONG CHEE TUNG CO-FOUNDER AND CEO, ENGAGEROCKET
The younger generation is growing up in an informationally rich era, so they are more discerning with their choices. Many believe that money will come from years of experience, so they turn to the next fundamental thing: culture. Many companies have been actively promoting their positive cultures, which solidifies the belief that great workplaces do exist; we just have to find them.
VICTORIA WISNIEWSKI OTERO FOUNDER AND CEO, RESOLVE FOUNDATION
Young people are concerned about everyday injustices and inequalities that surround them. They want to feel a sense of belonging and purpose in the place they spend the majority of their waking life. It is not enough for companies to condemn discrimination and harassment; young people expect their employer to be proactively engaged in conversations and solutions towards greater social justice and inclusion in the world.
VALENTINA WU EXECUTIVE SECRETARY GENERAL, FOSUN FOUNDATION
The younger generation of Chinese job-hops every two to three years on average. With new industries and career options, they have more freedom when it comes to their career choices. With this, it might be good for companies to realise that “work with” is more important than “work for”.
33%
Thirty-three per cent of consumers buy a product because they believe it is doing social or environmental good, while 88 per cent want brands to help them be more environmentally and socially responsible
PEGGY CHOI FOUNDER AND CEO, LYNK
My view is that it shouldn’t be thought of as “communication” but, rather, how to carry the purpose through everything that the company does. If a company has set out to stand for sustainability, it is not about communicating that to its team and its external stakeholders; it’s about realising actual initiatives and changes that would lead to real sustainability milestones. People are inspired by actions, not words. Communication comes naturally with actions and actual results.
SARAH GARNER FOUNDER, RETYKLE
There is an aspiration-action gap that consumers are looking for companies to fill by serving them with more environmentally and socially responsible products and services. At the same time, consumers are becoming more aware of greenwashing and are starting to demand transparency, particularly in claims of doing good. Transparency is key when communicating purpose and having data-backed evidence to demonstrate progress. Admitting to where progress still needs to be made is critical to building trust.
CHRISTINA DEAN FOUNDER AND BOARD CHAIR, REDRESS, AND FOUNDER AND CEO, THE R COLLECTIVE
People really do want to do the right thing—or less of the wrong thing—with their purchases, and they need companies to make their shopping decisions feel inspired and positive, rather than guilt-filled. Companies need to communicate honestly and thoroughly, and they need to mean what they say. If the purpose is real and not lip service, then there are no pitfalls.
HARRIS CHENG CO-FOUNDER AND CEO, GREENVINES
Start by doing a B Impact Assessment, which is a free tool that aligns with the current ESG trend. Also, set team goals aligned with your organisation’s vision and mission. Make progress transparent. If possible, draw a system map that makes every employee see how their daily job contributes to your company’s purpose.
82%
Eighty-two per cent of companies believe that purpose is important, but only 42 per cent say their stated purpose has much effect
KATHLYN TAN DIRECTOR, RUMAH GROUP
An idea is only as good as its execution. Similarly, companies can’t just declare their purpose and expect the desired results. They need to have a clear, datadriven strategy that ensures accountability in how they achieve this purpose, in order to unify and engage stakeholders such as their employees, investors, suppliers and customers, so that everyone is moving in the same direction.
ZIKRY KHOLIL CO-FOUNDER AND CHIEF COMMERCIAL OFFICER, INCITEMENT
One of the ways for companies to walk the talk of being a purpose-driven company is to adopt ESG measures and get scored. This makes it transparent to all stakeholders and the public the purpose of a company. CSR reports don’t cut it anymore. Having an ESG scorecard is one of the few actions that can push a company towards having more purposeful goals. It is an accountability mechanism that needs to be in place.