A clear, meaningful purpose drives business success

By Shelley Polansky, President/CEO 

People now expect businesses to be more engaged with society than ever before. According to the 2023 Edelman Trust Barometer, 63% of those surveyed will buy or advocate for brands that share their beliefs and values. But it’s not just consumers who look for socially responsible companies. The survey also uncovered that 69% of people believe a prospective employer’s ability to impact society can make or break their decision to accept a job.  

What does this mean for companies today? Simply put, having a purpose matters. But here’s a big caveat: You can’t just state that your company is environmentally responsible, socially responsible, inclusive, or philanthropic; you have to prove that you truly are. The Porter Novelli’s Purpose Perception study revealed that 84% of respondents want companies to demonstrate – and a one-off advertisement won’t cut it – how they are living up to their promises to people, the environment, and society. 

Purpose has its benefits

Companies that undergo full-scale organizational change to demonstrate that they are authentically committed to doing business better over the long haul can reap significant benefits. When businesses lead with purpose, they develop stronger relationships. Not only can companies use their purpose to attract new talent, but that purpose becomes a powerful motivator for current employees. Employees who believe that their jobs and their work can make a difference are typically more productive and loyal to their companies.  

Purpose also attracts dollars. According to Porter Novelli, 71% of survey respondents would choose a purpose-driven company over a competitor when cost and quality are equal. Purpose also has a direct correlation to consumers’ willingness to try new products or switch to a new brand. 

An authentic and meaningful purpose builds trust and loyalty. It also can bring about forgiveness. Mistakes and issues happen; no business is ever perfect. However, Porter Novelli’s research shows that 68% of respondents are willing to forgive a purpose-driven company for its missteps.

The strategy of purpose

Your purpose helps define the kind of impact you want your company to have on the world. That purpose informs your company’s mission, vision, values, decision-making, story, and much more. Thus, determining your purpose is not something that should be taken lightly. It must be true to what you can deliver and stand behind because if you cannot live up to your purpose, you could experience more harm than good. 

A word of caution: While people now expect companies to take stands on environmental issues, embrace diversity and social responsibility, and deliver quality products and services, you should take care when or if you plan to engage in politics. As we see on daily basis, politics can be extremely polarizing, and even the best intentions can sometimes be misconstrued. When deciding to comment on political topics, make a donation, or support a politician, make sure that it strategically aligns with your purpose.  

Validating your purpose-driven activities

Given the growing emphasis people are placing on purpose, businesses must take care to avoid purpose washing. In purpose washing, businesses use marketing and campaigns to claim they have a meaningful purpose, are socially responsible, or support a social cause, but their actions say otherwise. 

To help businesses demonstrate to the community that they are embracing purpose and profit in today’s marketplace, the Better Business Bureau has unveiled a new program: BBB4Good. The program also helps consumers identify purpose-driven businesses that are delivering on their social good promises. Using the BBB’s company listings, buyers can search and find businesses that align with their values and have had their social good activities vetted by BBB. 

BBB Serving Northern Colorado and Wyoming is pleased to be one of the six BBBs in the country selected to pilot this new program. Businesses can apply to become a BBB4Good Verified Business. To receive verification, your business’s social good initiatives must meet the BBB4Good Standards for higher purpose, community engagement, authentic marketing, and impact substantiation. 

BBB4Good Verified Businesses are listed as such on BBB.org and can promote their purpose-driven activities by displaying the BBB4Good Trustmark. When used alongside the BBB Accredited Business Seal, the BBB4Good Trustmark shows people that a business is both trustworthy and purpose-driven. 

Let people know you’re delivering on your social good promises

For a limited time, BBB Serving Northern Colorado and Wyoming is waving the application fee for Accredited Businesses that apply for BBB4Good Verification at BBB.org/BBB4Good. If you’re not currently a BBB Accredited Business, learn more about accreditation at bbb.org/get-accredited – BBB Accreditation is an ideal first step to showing buyers that your company operates with honesty and integrity.   

Shelley Polansky is president/CEO of BBB Serving Northern Colorado and Wyoming.