The Emergence of Purpose-Driven Branding

We are navigating truly exceptional times. The combined impact of Covid-19 and the Black Lives Matter Movement has heralded a new epoch. The pandemic has heightened our sensitivity—prompting fear, vulnerability, and a reevaluation of societal norms due to economic and social instabilities, and the profound loss of life.

The year 2020 revolutionized not only our personal lives but also reshaped the marketing and branding arenas permanently.

Businesses faced the urgent need to adapt their models rapidly. Following a significant surge in eCommerce from infrequent users, both traditional and online retailers had to innovate to survive. A vast majority of firms found themselves redefining their operational methods and undergoing profound introspection regarding their brand values and their impact on customers, communities, and globally.

A Commitment Beyond Profits

It is no longer sufficient for brands to solely chase profits; they must also cultivate a meaningful purpose. Purpose is the core reason for a company’s existence, its deeper mission. Whether it’s advocating for diversity or promoting environmental sustainability, a brand’s purpose must transcend profit-making. Today, leading with purpose is imperative; it must resonate with the company’s ethos, inspire its workforce, and align with customer expectations.

The concept of purpose-led companies is not novel, but their prevalence has significantly increased. Consider Ben & Jerry’s, which on September 15 launched a podcast with Vox Media titled “Who We Are: A Chronicle of Racism in America,” exploring the enduring impacts of racial injustice in the U.S. Similarly, the fashion brand Amour Vert emphasizes sustainability at its core, committing to eco-friendly practices across all aspects of its operations.

Crucial for Employee Engagement

The shift towards purpose-driven branding can largely be attributed to the influx of millennials into the workforce. These younger employees prioritize social impact and corporate culture over salary alone, as evidenced by their preference for working with companies that demonstrate a clear commitment to societal issues. Engaged employees, particularly those working for purpose-oriented firms, generally outperform their peers, as supported by multiple Gallup studies.

Influencing B2B and B2C Sectors

Purpose-driven initiatives are becoming increasingly crucial in both B2B and B2C contexts. Many B2B buyers, predominantly millennials, expect their suppliers to share their values on social and environmental issues. Companies are incorporating these principles into their governance structures to meet new business standards and expectations.

Supported by Data

Research by Accenture Strategy from their 14th Global Consumer Pulse highlights the growing consumer demand for purpose-led brands. The study found that consumers are quick to abandon brands that fail to live up to their social responsibilities, with a significant portion choosing to sever ties permanently.

The Path Forward

In this evolving landscape, brands must assess their relevance and readiness for the future. Embracing purpose-led branding offers a unique opportunity to distinguish themselves and thrive. Unilever’s experience, where its sustainability-focused brands are growing substantially faster than others, underscores the benefits of embracing purpose. As the corporate world shifts, defining and adhering to a clear purpose is not just advantageous—it’s essential.

To learn more about Purpose Led Branding and how it can apply to your brand, contact Starfish Branding Agency. 

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