Companies with purpose
13 companies with purpose. These purposeful businesses thrive in today’s economy.
More and more companies seem to be able to use the power of purpose to reach their goals. Purpose, in our definition, is where your core skills & expertise as a business or individual make positive societal impact. Although all companies that transform purpose into action make a positive contribution, not all of them are created equally.
In the following article, we will deep dive into some examples of purposeful companies. All too often, all purposeful companies are treated the same. But there are major differences in the ways in which companies are embedding it in their core. We make a distinction between two types of purposeful companies:
1. Companies with purpose embedded in their core from their founding date
Most of the companies that really harness the power of purpose have been built from the ground up with purpose embedded in their DNA. They’ve been living and breathing their purpose from day one. Nine famous examples are:
- Patagonia Yvon Chouinard’s company’s purpose being “Patagonia is in business to save our home planet.”
- Tesla (and frankly all of Elon Musk’s companies) Founded to accelerate the world’s transition to sustainable energy
- Tony’s Chocolonely A Dutch company with the purpose of making all chocolate in the world 100% slave free. Now market leader in the Netherlands
- The Ocean Cleanup On a mission to clean up 90% of the world’s ocean plastic.
- Two thirds (Among MANY new clothing brands)
- Ecosia A search engine that plants a tree for every search.
- The Vegetarian Butcher Founded by a ninth-generation pig farmer, now acquired by Unilever.
- Greyston Bakery Founded by a zen-buddhist to help people facing barriers to employment
- The Plastic Bank Whose mission it is “to stop Ocean Plastic by gathering a billion people together to monetize waste while improving lives.”
These are the companies that make the news, and are usually portrayed in an extremely positive way.
2. Companies that are making steps in their transformation to become more purposeful
Propelled by a new era of activism, long term goal setting, and global awareness, purpose has become a hot topic of discussion in the boardroom of established brands as well. Big consultancy firms and business news outlets are picking up on the topic.
Although companies in the first purpose category (like the nine companies above) are being founded at an increasing rate, many business leaders are facing the challenge of implementing purpose in their companies. They have to break the mindset that resulted from Milton Friedman’s economic paradigm, which dictates that the social responsibility of business is to increase its profits. They have to prioritise profit over purpose.
These are some of the forward thinking companies and business leaders that are now pushing forward by embedding purpose in their organisations:
- Unilever One of the largest consumer goods companies. Former CEO Paul Polman successfully launched Unilever into a new era of purpose-led business. His successor, Alan Jope, remains true to Polman’s business ethic, and continues to puch Unilever’s purpose ‘to make sustainable living commonplace’.
- Adidas This brand has recently been focusing heavily on sustainable innovations. Their goal is to completely replace virgin polyester with recycled polyester in their production process by 2024. To this end they are currently testing their 100% recyclable shoe ‘Futurecraft’. With this shoe they are not only aiming to use recyclable materials, they’re also building a circulair value chain by collecting worn-out shoes and building a completely new recycling process from the ground up.
- DSM This company uses its science-based innovations to create brighter lives for all in the fields of Nutrition, Health & Sustainable Living. DSM’s CEO Feike Sijbesma has some amazing speeches on how he sees (his) business as a catalyst for positive change. This one, for example.
- IKEA For about ten years, Ikea has seriously stepped up their sustainable game. The world’s largest furniture group is focused on six themes: climate & energy, wood, cotton, water, waste and food. They will produce more energy than they consume by 2020, and have very recently committed to invest an additional 200 million euros to turn ‘climate positive’.
Why don’t all companies lead with purpose?
Although these examples clearly outline how purpose can be embedded in an existing company, a surprisingly low amount of companies seem to be able to actually transform their purpose into action. 78% of executives believe their businesses are failing to deliver on social purpose pledges and 14% of CEOs don’t even know where to start or how to make more impact with their business.
Also, in trying to make a change, a lot of businesses face skepticism. Stakeholders, although eager to contribute to society, have been drilled to prioritise profit for years. Pushing an impact-first strategy feels like a complete transformation.
So, embedding purpose in an organisation can be a challenging task. Despite this fact, the purpose economy is accelerating. With the right approach and enough support from the core and the top of an organisation, purpose can be transformed into action!
Make purpose work for your business
In this blog series, we’ll explore the depths of purpose. What are the benefits for your business, how do you define a corporate purpose, and how can you turn that purpose into a business success? Read on and become a purpose expert yourself!
- Corporate purpose: the what, the why, and the how
- Purpose, mission, vision, what’s the difference?
- The three core benefits of purpose for business (coming soon)
- How to define your corporate purpose (coming soon)
- 13 companies with purpose
- How to use authenticity to create a successful purpose (coming soon)
- Employee purpose – How to activate it in your business
- The difference between purpose marketing and being purpose driven (coming soon)