Customers aren’t choosing a company to do business with by great ads anymore – it takes more than that.
Millennials and Gen X have more shopping options than ever, and corporate purpose is starting to play into the equation. If you’re not already putting an emphasis on your corporate purpose, then it’s time to start. Here’s why.
What Is Corporate Purpose?
Remember mission statements? Most companies have one, and they’re supposed to help guide a company when making decisions. In a sense, this is a starting place for most corporate purposes.
A corporate purpose statement needs to go further than your standard mission statement. They’re meant to be specific, but concise, reasons for why a company is doing what it does.
Companies are having to prove to customers that they’re worth supporting. The more transparent you can be as a business, in a positive way, the better. Customers want to see that you’re going to treat your employees well, serve your customers excellently, and make an impact on the world.
Your corporate purpose needs to address how you’ll take care of these things in a pretty specific way without being too long. As EY Global says, “the pursuit of profit is no longer enough.”
Why Is Corporate Purpose Important?
As the younger generations get older and take over the consumer market, it’s important to recognize how to best sell to them. Having a corporate plan does just that.
As a statement from Nasdaq on ESG says, even investors are realizing the importance of a company’s ethical stance on selling. As companies like Patagonia continue to see success with projects that are backed by helping some areas of the world, other companies are taking notice. Here’s some more info from that meeting.
Customers are seeing that more and more, and they’re also seeing it through fake fronts. Companies have to be more careful than ever to make sure that they’re not setting themselves up for a scandal.
For example, a company that makes up a corporate purpose but doesn’t continuously show it, then most customers will see right through it. A company needs to follow a corporate purpose or else it’s worse than not having a corporate purpose.
Having a corporate purpose can also make running your company a little less stressful. If you have to make a statement on a social, political, or environmental issue, then your corporate purpose can help you decide what to say. On top of that, you’re also just helping the world—that’s never a bad thing.
Ready for More Business News?
While corporate purpose is important, it’s not the only important news in the business world. Staying up to date in the corporate world means staying up to date with any new news or theories on how to do business.
If you’re looking for more news in the business sector, check out our most recent articles on our blog.