Why should you want to be a purpose led business?

People’s attitudes have changed towards business, with ethics and value overtaking profit as the main driving force behind how people view brands. Operating a purpose-led business puts the focus directly where it should be in a modern company, and it can help a great deal in winning people over to your cause.

What is a purpose-led business?

The purpose of a business is the 'why' behind the company's existence, on a deeper level than simply turning a profit. Purpose defines why your business matters to people, what it is striving for and the benefits it can bring to the world at large.

Profit margins are also a part of the function of a business, of course, so meaningful purpose-led businesses aim to create value for customers, shareholders and stakeholders alike. This type of thinking bleeds into how a business operates, how it markets itself and much more.

Why is being a purpose-led business more important now than ever?

Consumers are much more savvy thanks to the advent of the internet, which means that controversies surrounding big brands are much more likely to draw attention and potential problems for companies.

Nestlé is a great example of this, as they have been fighting against the likes of Greenpeace for years over the bad publicity surrounding their sourcing of palm oil in Indonesia. Many customers have vowed to steer well clear of any Nestlé products as a result of this bitter controversy.

All of that is to say that being a purpose-led business can prevent these types of controversy. If Nestlé were a purpose-led business, they would have addressed this glaring problem themselves, before being embroiled in the palm oil problem.

Benefits to people, profits and processes

There is more to being a purpose-led business than avoiding the bad press, however. There is a positive feedback cycle that inspires staff, recruits the best employees and ultimately encourages greater innovation in a business. Staff feel more engaged in purpose-led businesses as they believe their work has meaning and significance. The best job candidates will be more likely to work at purpose-led businesses because of this, too. These factors can help drive innovation, as a purpose-led business will get more value from their team.

Purpose-led businesses create a path for their success

Profit for purpose-led businesses should reflect a positive result, not a destination or defined purpose. The path of a purpose-led business should not be towards profits but towards a greater goal. Clothing manufacturer Patagonia has environmentalism at the core of their purpose, with profit being a symptom of their success rather than a driving force behind it.

Find a greater goal for your company to reach for, find the true purpose of your brand and align your efforts to reflect that. This will be the purpose behind your business and it can help you win over customers, get the best staff and truly drive innovation and profit as a result of a meaningful ethos for your brand.

Learn more about the services Nurture Company Health offers and how they could work for you and your business. Contact our team today or book a discovery call with Michelle here for a complimentary 60-minute meeting.