June 10th, 2023
“The brands that will thrive in the coming years are the ones that have a purpose beyond profit.”
— Richard Branson
In a world where consumers are becoming increasingly conscious about their purchasing decisions, purpose-driven businesses are emerging as leaders in the brand landscape. These enterprises are guided by a strong sense of mission beyond profit, aiming to make a positive impact on society and the environment.
Understanding Purpose-Driven Business:
A purpose-driven organisation (PDO) is a business that goes beyond traditional profit-making objectives. PDOs reject Business-As-Usual (BAU) in the typical supply-and-demand framework. Instead, PDOs are built upon a core set of values, a clear mission, and a deep sense of responsibility towards all people and planet. Such organizations prioritize sustainability, social justice, and environmental care, understanding that profit does not always need to take centre stage as the singular goal.
Many BAU brands yet to move into sustainable practice are nervous, under the misconception that aligning sustainability with or above profit, will result in a financial loss. However, according to a study of Chief Sustainability Officers, surveyed companies that have invested in digitization and sustainability are seeing more than 11% higher revenues and higher profits than their peers. (Business Insider)
2024 Forecasted Trends for Purpose-Driven Brands and Sustainable Organisations:
So far 2023 is already witnessing a remarkable shift towards prioritizing the interests of all stakeholders, including employees, customers, suppliers, and local communities and this trend is set to continue to become normal, wider practice. Purpose-driven brands will embrace this approach, acknowledging that a successful business goes hand in hand with the well-being of its broader ecosystem.
Embracing Circular Economy Principles:
In response to the growing concerns about waste and resource depletion, PDOs are increasingly adopting circular economy principles. These focus on minimizing waste, reusing materials, and promoting sustainable production and consumption models. The redesign of supply chains and product lifecycles to create a closed-loop system can significantly reduce the environmental impact of a brand.
Ethical Supply Chain Management:
Hand in hand with environmental causes comes ethical practice and justice. As consumers demand transparency and ethical practices – from Fairtrade to fair wages for garment workers - purpose-driven brands are understanding responsible supply chain management. This prioritises worker welfare, reducing poverty and embedding sustainable sourcing practices.
“Every activity that is not aligned with your purpose is a waste of resources.”
— Michael Kouly, CIGL
Impact Measurement and Reporting:
Into 2024, purpose-driven businesses will continue to strive for greater transparency by measuring and reporting their social and environmental impact. By doing so, these organizations can build trust with consumers, investors, and other stakeholders, setting a benchmark for accountability and progress.
Collaboration and Partnerships:
Recognizing the interconnectedness of global challenges, purpose-driven brands will form collaborations and partnerships with other organizations, governments, and NGOs. By working together, they can tackle complex issues more effectively and drive systemic change. Collective action will become a cornerstone of sustainable business practices in 2024 and beyond as Governments realise that civil society and the business world should be working together to better serve local and global communities.
As we move in to the second half of 2023, all eyes are on the final quarters and year ahead. Sustainability is not going away and should not go away. It is no longer enough to place profit as the sole mission for your brand – consumers are asking for more. By embracing sustainability and social responsibility, organizations can drive positive change but also thrive in an era where conscious consumerism is gaining momentum. A 2022 report from First Insight found that 72% of consumers consider sustainability in purchasing decisions.
Are you a sustainable business? Does your organisation have purpose? Now is the time to get on board. Through an unwavering commitment to a higher purpose, PDOs will shape a future that is both economically prosperous and environmentally sustainable.
