Building brands on purpose

‘All that really matters is profit. Purpose is a ‘nice to have’, something that a little CSR campaign can address, but our social and environmental impact isn’t that important.’

Doesn’t that sound ridiculous.

Building social or environmental impact into a brand or product proposition has historically been overlooked, underestimated, and seen as something that’s a little bit niche — a ‘cute’ addition to a core business model. But thankfully, these days are over, and for both small businesses, and global brands, environmental and social impact is well and truly on the agenda. These days, this is not for companies to set themeslves apart, but for them to keep up with the competition, with regulations, and with what consumers want.

With increasing institutional frameworks (ESG regulations, B Corps), a sustained backlash against greenwashing, and a never-ending wave of social conscience, we’re moving towards an exciting new normal of ‘purpose’ being something that’s tangible and real, not tokenistic and ethereal.

‘Purpose’-led innovation is moving from looking good, to doing good. From adding nice extras, with ‘side-of-desk’ box-ticking initiatives, to transforming the core, fundamentally rethinking value propositions and business models.

Considering conscious consumerism

Try saying that 10 times in a row…

Consumers caring about the ethical and environmental impact of the brands they buy is not an emerging trend, it’s an established behaviour. ‘Conscious’ consumerism is the way in which people are thinking more carefully than ever about the social and environmental impact of the products they buy. Two of the many things that are driving this are (a) a much greater awareness of how things are produced and the impact this has on people and the environment, and (b) a much more widespread belief that companies should align with your values, and also allow you to live up to them.

In fact, a study found that 64% of consumers globally choose to buy or boycott a brand based on its stance on societal issues, and another found that 88% of consumers in the UK and USA say they would like brands to help them be more environmentally friendly and ethical in their daily lives.

Impact in action

People are much less happy to compromise on their values with the things they spend their money on, and they don’t think companies should be compromising either. A study this week found that in the US, four in five people believe brands can do good and also make a profit. To state the obvious, there’s no shame in seeking profit and growth. Businesses are not charities. The sweet spot is where profit and purpose go hand in hand, and where companies are able to deliver on quality responsibly. Not just talking the talk, but walking the walk.

There are many great examples of companies and brands delivering on purpose alongside profit, genuinely addressing the problems that matter for both consumers and others in society. They’re driving social and environmental impact where and how it’s needed — throughout supply chains, in production/delivery, and in the lives of consumers.

In fashion, there’s been a wave of awareness of the social and environmental impact of fast fashion. It’s been found to be the second-biggest consumer of water and is responsible for about 10% of global carbon emissions — more than all international flights and maritime shipping combined! Where being more ethical and sustainable really works for fast fashion is where it’s ingrained in the fabric (see what I did there…) of how the business operates. High street retailers are trying to make changes, and UK shops like Fat Face and White Stuff have managed B Corp status, but where real change is being seen is where clothing companies are rethinking how supply chains operate and shifting consumer behaviour. From brands built on ethical and fair practices like Lucy & Yak, to ‘just-in-time’ waste-free production from The Unfolded, to Patagonia encouraging consumers to fix their existing gear instead of buying anything new.

In consumer goods, there’s an increasing desire to be more ‘intentional’ with the regular shop, with more conspicuous consumption around everyday essentials, and people seeking truly quality products that have a positive impact. Who Gives a Crap has changed the game for loo roll, with its distinctively wrapped, eco-friendly rolls where 50% of profits are donated to help build toilets and improve sanitation in the developing world. Tony’s Chocolonley is not only focused on being delicious, it’s also committed to ending modern slavery in the cocoa industry.

In technology, there’s Fairphone, a Dutch company flipping the smartphone industry on its head. Unlike the rest of the market, their products are made from recycled, fairtrade and conflict-free materials, with fair working practices across their supply chain. And challenging the accepted norm that phones have a short lifespan, their latest phone is made to last for 10 years, with replacement ‘modular’ parts that you can replace yourself if you need to.

Scaling up good

Let’s hope this is just the beginning.

One of my favourite phrases when it comes to innovation is that brands need to focus on what they ‘should do’ not just what they ‘could’ do — and what they should do needs to be viable for the business, meaningful for what the consumer needs, and responsible in the impact it has on the world.

I’m passionate about the movement towards building more kindness, awareness and impact into consumption and about helping the brands who do to hone their distinctive edge.

Let’s continue to do good, better.