The future is of the purpose-led companiesAlina Făniță
The purpose of a company defines it, tells the world why it exists, what problems it intends to solve and what values it sustains in each interaction. More and more often today, companies use the purpose to deepen the relationship with customers, to contribute to the consolidation of the community in which they operate, to attract talents while achieving economic performance figures.
But not all companies see an all-inclusive ideal in purpose. Some represent it as a public relations tool just to communicate who they are, what they support and gain market share. Others believe that marketing the products at the lowest prices is the only thing that matters to consumers.
While we can recognize mentalities of this kind even among successful companies, research shows that what sets companies apart from others is longevity and authenticity.
Companies that focus on their purpose and connect it with the way they conduct their operations will benefit from the following set of competitive advantages:
1. Long-term loyalty
Companies that have a purpose and build their business around it get more consistency and loyalty from customers. Companies that fail to identify and define a purpose can survive in the medium term, but in the long term their customers will want more.
2. Long-term growth
According to studies on this topic, companies that are purpose-focused, have larger market share increases and grow about three times faster than their competitors. Moreover, these companies also obtain a higher level of satisfaction among employees and consumers.
3. Generational diversity
A brand that affirms a purpose of the company attracts the younger generation of Y and Z because it either aligns with who they are or who they want to be. But why is the purpose important? Because it answers the question “why does the company exist?”, And this answer brings clarity in the business decision-making mechanisms.
4. Community involvement
Stimulated by technology, current transformations also contain the change of the factors that influence the purchase decision. Increasingly, we are careful to buy from the brands that treat their employees well, take care of the environment and get involved in the community where they operate.
Because when companies align their actions for the satisfaction of the common good, they build sustainability with all the factors involved, and consequently they increase their relevance to be for them.
The latest developments in relation to the performance of a company show that in the first place it is no longer necessarily the financial situation, or the satisfaction of the employees and consumers, but the measurement of the social impact. Therefore, the purpose is an important differentiating factor.
5. Resilience in crisis
Even if the operational measures, to ensure business continuity, are those that immediately enter the managers’ agenda in crisis situations, once they are implemented, it is important to reconnect everyone with the company’s purpose and values. In this way, both the values and the purpose will be revalidated and will act as a positive energy source of the team, will bring clarity and will mobilize for contribution and action.
Increasingly, there is a tendency to connect to communities and customers through the purpose. Price and quality are still the main factors in buying decisions. However, more and more young people choose the companies with the responsibility to act as their purpose. The purpose says something important because it expresses an aspiration that is relevant to us all. As a result, people prefer purpose companies because they are personally addressed to them. They prefer that employers, buy their products, support them and recommend them to others, even in times of crisis.
Alina Făniță este CEO și Partener al PKF Finconta. A lucrat cu companii multinaționale sau firme antreprenoriale din domenii diverse de activitate, pentru a le oferi servicii de audit financiar, due diligence, restructurări de grupuri, audit intern și alte servicii conexe activității de control intern. Este membră a celor mai prestigioase asociații profesionale din domeniu: ACCA (Association of Chartered Certified Accountants), CECCAR (Corpul Experților Contabili și Contabililior Autorizați din România), CAFR (Camera Auditorilor Financiari) și IIA (Institute of Internal Auditors). A absolvit EMBA Asebuss la Kennesaw State University, a fost trainer pentru cursuri IFRS și este invitată ca expert la numeroase conferințe de business. email@example.com