“Purpose” is an English word meaning goal, aim, or objective. It has gained substantial relevance in business and organizational contexts in recent years, leading to more frequent discussions around Brand Purpose (or Corporate Purpose).
According to well-known definitions, Purpose is the reason a brand exists and the contribution it aspires to make in society in terms of human progress. Put simply, it’s the positive impact the brand wants to have on the world. And if we’re talking about impact, it’s essential that this impact is positive, resonating with people’s needs, improving their lives, and helping them achieve their own goals.
Purpose Is a Matter of Responsibility (and Trust)
Finding one’s deeper purpose is a way for brands to connect with both the people within and outside the organization and stay relevant in a rapidly evolving market—one that’s transforming at a speed unimaginable just a few years ago. To give a sense of this shift, the first iPhone came out in 2007, and Instagram launched in 2010. These milestones illustrate how connection dynamics have changed at every level in such a short time.
In a context full of opportunities yet marked by instability and precariousness, there is a strong sense of disorientation and uncertainty about the future, leading to new tensions and increased polarization. This has led to a profound distrust in institutions, which are no longer seen as entities capable of addressing the major challenges of our time. According to the Edelman Trust Barometer 2023, the most influential global study and observatory on trust, institutions have been replaced by businesses, viewed as the only trustworthy entities. People are turning to them for reassurance and answers. In the US, 66% of consumers want brands to take a stand on social and political issues (source: Sprout Social). In Italy, 7 out of 10 people are more likely to purchase a product if the company supports environmental causes or promotes social initiatives (source: Nielsen).
This shift brings significant responsibility for brands, which must be managed carefully. Clearly defining Brand Purpose can be the difference between gaining or losing trust—and, therefore, between engaging or alienating clients, talent, and stakeholders.
Purpose and Authenticity
Purpose offers both a reputational and economic opportunity. Unilever’s then-CEO famously demonstrated at an investor event in 2019 that purpose-led brands, such as Dove, perform better and grow 69% faster than those in the same product category that lack a purpose-driven approach.
However, there’s one essential requirement: authenticity. Only in this way will the brand be credible. People today are increasingly informed and aware, easily recognizing “surface-level” actions that lack concrete and measurable commitment. The backlash against various forms of “washing”—greenwashing, pinkwashing, rainbow washing, and others—demonstrates this. Reputation damage of this kind can be avoided if the brand remains genuinely committed to its values and purpose in an authentic way.
Purpose Between Identity and Storytelling
But how can a brand discover its Purpose? As in any good story, the first step is to work on identity. Understanding who you are is the only way to define an authentic Purpose. Then, it’s about finding the right stories to bring that purpose to the world. For us, those are BOLD stories.
Consistency and alignment between what a brand is (and does) and what it communicates are essential—in other words, an alignment between Identity and Storytelling.
Brands like Patagonia and Dove have demonstrated the importance and effectiveness of integrating Purpose deeply into their business models. However, having a clear Purpose isn’t just for international brands; it’s fundamental for any brand that aims to remain relevant in the market. It’s not something separate to be treated marginally from the company’s core business; instead, it is foundational and provides direction for making the right choices.
Best of Best Global Brands 2023
To achieve this, an integrated strategy is needed—one that considers identity, business aspects, and an understanding of Diversity and Inclusion dynamics to ensure fair access to people. All of this must be balanced with the importance of representation throughout the process.
Brands that dare to accept the challenge and uphold the promise of authenticity will be rewarded with deep, long-lasting relationships with their audiences and will manage to impact society positively.
