Staying on Purpose No Matter What

A shifting global economy can be a major distraction for businesses, but it is important for firms to not stray from their corporate purpose. Purpose is why the company does what it does.   

Almost a quarter of S&P Global 1200 companies have a statement of corporate purpose (SCP)—a trend that is growing rapidly. An SCP isn’t merely a rehash of the company’s mission statement; in a business environment centered on the “customer” in every sphere, it’s a public commitment to identifying and responding to the needs of multiple stakeholders well beyond the boardroom.  

Marketing and communications executives can play an essential role in creating, implementing, and communicating corporate purpose. Consumers increasingly factor a company’s purpose into their purchase decisions. Purpose is most evident to consumers when it is central to a company’s brand and reputation.  

Having a clear, stated purpose is often a hiring advantage, particularly among younger employees. It can also serve as a polestar for desired behaviors and as the basis for reward and recognition programs. Purpose should be revisited periodically. Ideally, a company’s stated purpose should be evergreen, but the reality is that as stakeholder and societal expectations shift, purpose must keep pace. 

The number of companies that identify as “purpose driven” has increased exponentially in the last decade. We expect that trend to continue, and for more companies to signify their commitment to multiple stakeholders with a statement of corporate purpose.  

But how to begin? This primer offers preliminary guidance: Corporate Purpose: A Primer for Marketing & Communications