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The Value of Purpose
Will Gardner, July 2017
t: @willgardnr
‘our company’s purpose is to
delight and entertain music
fans around the world’

(a marketing thing)
‘in line with our purpose,
we’re launching a carbon
positive carpet tile’
!
(a sustainability thing)
“The real purpose of
business has always
been to come up with
solutions that are
relevant to society, to
make society better.”
Does it pay
to be
purposeful?

How?
Why?
$12tr
value of SDGs
by 2030 (BSDC)
$19tr
value of Paris Accord
by 2050 (IRENA)
$1tr
value of Circularity
by 2025 (McKinsey)
So, how can purpose
create both business
and societal value?
1. Innovation


‘the world’s biggest
problems are the world’s
biggest markets’
Peter Diamandis
IKEA sustainable
product sales €1,802m
(2016) vs. €641m (2013)

70% of the way to
target of achieving a
four-fold increase in
sustainable product
sales by 2020
Unilever reported 30 percent faster growth for its
“Sustainable Living” brands vs. rest of its business:
half of the firm’s total growth in 2015
Market
transformation:

Leading the development
of a new, much more
sustainable marketplace;
and taking a greater
share of that new
marketplace
Nutrition
Climate and Energy
Circular/Bio-Based Economy
BlaBlaCar has more
than 600 employees
and more than 35
million members across
22 countries.

Company valued at
$1.6bn in Sept 2015
Have we hit ‘peak
curtains’?

How can companies
grow revenue and
profits without having
to grow consumption?
2. Long term differentiation
Build brand equity via ‘the way we do business’
Brand activism is IN.

What’s the payback,
to the causes
themselves and to
the bottom line?
‘If a brand can allow me
to carry on living exactly
as I was and fuel my
social conscience then
they can have all my
pocket money’

Will Fowler
Creative Director, Headspace
‘If a brand can allow me
to carry on living exactly
as I was and fuel my
social conscience then
they can have all my
pocket money’

Will Fowler
Creative Director, Headspace
Are brands
sometimes guilty of
letting ‘consumers’
off the hook?
RETAIN
the best
Millennials are 5 times more likely
to stay with employers when they
feel a strong connection with their
employer’s purpose2
1Deloitte, 2015 2 PWC, 2016 3Society for Human Resource Mgt
RECRUIT
the best
50 percent of millennials would take
a pay cut to find work that matches
their values1
Improve
MORALE
Morale is 55 percent better in
firms with strong sustainability
programmes3
3. Reducing costs
& mitigating risks
In the 15 years from
1994 to 2010, Dow saved
1,800 trillion BTUs….
…which is enough
energy to power all of
California’s residential
buildings for 1.5 years
Coca-Cola:
responsible water
stewardship is
critical to future
revenues
In summary – yes, purpose pays.


‘do have a little bit of fear…
a new way of delivering your raison d’etre,
satisfying customer need, is forming and
you don’t want to be last to that party’
Mike Barry

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The Value of Purpose - July 2017

  • 1. The Value of Purpose Will Gardner, July 2017 t: @willgardnr
  • 2. ‘our company’s purpose is to delight and entertain music fans around the world’ (a marketing thing) ‘in line with our purpose, we’re launching a carbon positive carpet tile’ ! (a sustainability thing)
  • 3. “The real purpose of business has always been to come up with solutions that are relevant to society, to make society better.”
  • 4. Does it pay to be purposeful? How? Why?
  • 5. $12tr value of SDGs by 2030 (BSDC) $19tr value of Paris Accord by 2050 (IRENA) $1tr value of Circularity by 2025 (McKinsey)
  • 6. So, how can purpose create both business and societal value?
  • 7. 1. Innovation ‘the world’s biggest problems are the world’s biggest markets’ Peter Diamandis
  • 8. IKEA sustainable product sales €1,802m (2016) vs. €641m (2013) 70% of the way to target of achieving a four-fold increase in sustainable product sales by 2020
  • 9. Unilever reported 30 percent faster growth for its “Sustainable Living” brands vs. rest of its business: half of the firm’s total growth in 2015
  • 10. Market transformation: Leading the development of a new, much more sustainable marketplace; and taking a greater share of that new marketplace Nutrition Climate and Energy Circular/Bio-Based Economy
  • 11. BlaBlaCar has more than 600 employees and more than 35 million members across 22 countries. Company valued at $1.6bn in Sept 2015
  • 12. Have we hit ‘peak curtains’? How can companies grow revenue and profits without having to grow consumption?
  • 13. 2. Long term differentiation
  • 14. Build brand equity via ‘the way we do business’
  • 15. Brand activism is IN. What’s the payback, to the causes themselves and to the bottom line?
  • 16. ‘If a brand can allow me to carry on living exactly as I was and fuel my social conscience then they can have all my pocket money’ Will Fowler Creative Director, Headspace
  • 17. ‘If a brand can allow me to carry on living exactly as I was and fuel my social conscience then they can have all my pocket money’ Will Fowler Creative Director, Headspace Are brands sometimes guilty of letting ‘consumers’ off the hook?
  • 18. RETAIN the best Millennials are 5 times more likely to stay with employers when they feel a strong connection with their employer’s purpose2 1Deloitte, 2015 2 PWC, 2016 3Society for Human Resource Mgt RECRUIT the best 50 percent of millennials would take a pay cut to find work that matches their values1 Improve MORALE Morale is 55 percent better in firms with strong sustainability programmes3
  • 19. 3. Reducing costs & mitigating risks
  • 20. In the 15 years from 1994 to 2010, Dow saved 1,800 trillion BTUs…. …which is enough energy to power all of California’s residential buildings for 1.5 years
  • 22. In summary – yes, purpose pays. ‘do have a little bit of fear… a new way of delivering your raison d’etre, satisfying customer need, is forming and you don’t want to be last to that party’ Mike Barry