Brand Purpose is Purpose, and vice versa

Poor communication is causing confusion and resistance to the adoption of Purpose.

In a recent discussion with a group of purpose and sustainability experts, we debated the difference between Purpose and Brand Purpose. I argued that the latter encompasses all elements of the former on the basis that brand influences everything a business does; from its reason for being, its ambition and business strategy, its operations and the suppliers it chooses to work with, its culture, what it invests in and how it takes responsibility for its direct and indirect impacts.

Brand Purpose inextricably links positive outcomes for the business with positive impacts on society and the environment.

So, Brand Purpose is Purpose, and vice versa.

This debate over these differences and definitions has been happening since Purpose first rose to prominence. The IPA’s recently released Effective Purpose Report added to the confusion.

The IPA defines purpose as “the reason a commercial brand exists beyond maximising profit to produce other meaningful forms of positive impact for individuals, societies, or the environment. It communicates both an organising principle for action in the brand’s present and an aspiration for its future.”

The problem with this definition is that it excludes the value purpose generates for the business. The IPA’s definition is closer to CSR or philanthropy than Purpose.

It also places the emphasis on communication, not action, giving brands room to make claims without commitment. Purpose is nothing without action.

And worst of all it gives brands the impression that they can jump on the bandwagon of social causes in purely superficial ways or through self-interest, without making any genuine impact on social issues or creating value for anyone.

Purpose creates value for individual stakeholders, the business and wider society. However it can only do this if it is an integral part of business strategy, rather than just used as a communication tool.

The IPA’s Effective Purpose report comes to the same conclusion, so it’s confusing that this isn’t reflected in their definition of Purpose.

If we are to convince more and more business leaders to adopt a purpose driven business strategy, we need to first convince them that they can align their ambition for the business with the incentives for creating a sustainable planet and healthier, fairer society. Purpose is the answer to this equation.

Purpose driven businesses are increasingly emerging as more resilient. Not only are their operations and systems designed to run more efficiently, inclusively and sustainably, but they attract and retain better talent, as well as more and more customers, who share their values. Brand comms and marketing have an important role in unlocking some of the value of Purpose by generating a strong affinity with these stakeholders.

We are going to see increasing pressure on commercial brands to respond quicker and at greater scale to the environmental and social challenges we are facing. Those businesses that don’t respond to and embrace the potential value creation of Purpose will soon be left behind.

So, definitions matter; poor definitions confuse and create excuses for resistance. Clear, compelling and concise definitions help align, inspire and coalesce the very people businesses depend on.

It is time all business leaders embraced a definition of Purpose that reflects the value it creates for individual stakeholders, the business and wider society, so they can have the positive impact so many of them wish to have.