UNITED KINGDOM / AGILITYPR.NEWS / October 16, 2020 / But 9 in 10 will prioritise profit over purpose in the short-term with many brands and businesses operating in survival mode
A new study has found that 7 out of 10 business leaders believe that future brand and organisational growth in the pandemic and post-pandemic economy can only be achieved by ensuring they become more ‘purpose-led’ and socially driven.
The research involving 502 CEOs and Managing Directors, conducted by Clearly PR and published in a whitepaper entitled ‘The Role of ‘Purpose’ in Driving the Post-Pandemic Economy,’ highlighted the need for brands to prioritise social purpose over profits in line with shifting consumer attitudes that are influencing purchasing decisions.
The study also found that with the looming global recession, 88 per cent of business leaders believe that brands will prioritise profit over social purpose in the short term with many still operating in ‘survival’ mode.
“It would appear that many business leaders are confusing brand purpose with corporate social responsibility (CSR). But the two are very different entities,” said Paul MacKenzie-Cummins, Founder & Managing Director at Clearly PR & Marketing Communications.
“Brand purpose needs to be product or service led. It is causally linked to the benefits that a business brings and the very reason why it exists in the first place and they use their company to advance that cause.
“Tesla is a great example of this, its purpose is ‘the acceleration of sustainable energy’. CSR for its part, is how a brand gives back to its community and supports worthy causes.”
“Brands can no longer pay lip service to the idea of contributing to society in some meaningful way,” said Paul MacKenzie-Cummins.
“As we saw during the height of the pandemic, consumers are shunning those businesses whose only intention is to maintain a relationship with them on the proviso it yields a monetary return.
“Consumer purchasing decisions are increasingly influenced by what brands and businesses stand for – their purpose. But it must be genuine and brand leaders need to be prepared to take a few risks.
“For a brand to be truly purpose-driven, it must be willing to take a stance on what it sees as social injustices no matter how difficult or divisive the subject matter, and even if that means making itself vulnerable to criticism.”
There is acceptance among business leader that any change will be driven by consumers and brands repurposing themselves to better manage and meet the expectations of their target markets.
Given the clear correlation between having a purpose-led product or service with increased competitiveness and greater influence over purchasing decisions, we are likely to see a spike in the number of businesses moving closer towards establishing their brand purpose and making this centre stage.
The full results are available in whitepaper format, and can be download via the following link: ‘The Role of ‘Purpose’ in Driving the Post-Pandemic Economy’.
About the research:
An online survey was conducted by among 502 business leaders and decision makers in the UK, using MRS-certified researchers who abide to MRS code. Of the 502 respondents, 23 per cent were Founders/Owners/Managing Directors, 20 per cent were C-suite Executives, and 13 per cent were in Senior Managerial positions such as Heads of department with budgetary responsibility. 35 per cent or respondents work for businesses with 1-49 employees, 19 per cent employ 50-249 employees, 18 per cent have a workforce numbering 250-499 employees and 28 per cent employ more than 500 people.
Clearly PR & Marketing Communications
Established in 2014, Clearly is a PR, Content Marketing and Creative Digital agency that operates across the Professional Services, Education, Technology sectors. For the last two years, the business has been recognised as one of the 10 fastest growing agencies in the UK and has continued to expand its portfolio of clients that now extend to the USA. Paul MacKenzie-Cummins has spent the last 15 years in the PR industry, having worked for over a decade in the advertising sector before that.