Causality or Correlation: Does Purpose Drive Profit, or Is It Just a Feel-Good Narrative?

Why This Matters Now

There’s an interesting debate in the business world: Does purpose drive profit, or do profitable companies happen to have purpose because they can afford it? In fact, the trigger of this impromptu article was the Channels News Asia CNA Summit on the 20 Feb 2025, where leaders talk about trade-offs.

The conversation around the causality vs. correlation of purpose and profit between the CEO of NVPC and the CEO of DBS Bank — got me thinking so here’s my high-level take on the topic...

Some believe purpose is a strategic advantage—a growth driver that boosts loyalty, differentiation, and long-term value. Others argue that profitability comes first, and purpose is just a nice-to-have (or worse, a marketing gimmick).

So, what’s the truth? Is purpose causing business success, or is it just a coincidence?

Let’s break it down.

1. The Big Question: Does Purpose Drive Profit?

Many reports claim purpose-driven businesses outperform their competitors, but is it causation or just correlation?

The Case for Causation (Purpose Drives Profit):

? Stronger brand differentiation → Customers trust and prefer brands with a clear mission.

? Higher customer loyalty → People buy from brands that align with their values.

? Better employee engagement → Purpose-led cultures boost productivity and retention.

The Case for Correlation (Not Causation):

? Maybe successful companies have the luxury to focus on purpose.

? Maybe purpose helps, but other factors (execution, pricing, product quality) matter more.

? Some companies win without a clear purpose—does that mean purpose is just a bonus, not a driver?

Hard truth? If purpose alone drove profit, every purpose-driven company would be wildly successful—but that’s not always the case.

2. Asian Brands That Prove Purpose Can Be Profitable

Love, Bonito (Singapore) → Purpose in Brand Identity & Community

? What they did: Built a fashion brand designed for Asian women, addressing real pain points (body proportions, cultural fit, career empowerment).

? Profit outcome: Expanded into key SEA markets, raised funding, and built a strong customer community.

OATSIDE (Indonesia) → Purpose in Product & Positioning

? What they did: SEA’s first homegrown oat milk brand, leading with taste-first, sustainability-second messaging to make it more relatable.

? Profit outcome: Rapid growth, brand differentiation, and strong adoption across SEA markets.

Grab (Southeast Asia) → Purpose in Economic Empowerment

? What they did: Created a ride-hailing & financial ecosystem that provided micro-entrepreneurs opportunities to earn.

? Profit outcome: Grew into a super app, expanded into financial services, food delivery, and more.

Pattern? Purpose works when it’s embedded into the business model—not just a tagline.

3. Brands That Succeeded Without a Clear Purpose in my humble opinion.

Shein (The Anti-Purpose Brand?)

? What they did: Ultra-fast fashion, aggressive pricing, and zero sustainability commitment.

? Profit outcome: Explosive global success, despite ethical concerns and consumer backlash.

McDonald’s (Profit First, Purpose Later?)

? What they did: Scaled globally with a cost-leadership model, not a purpose-driven one.

? Profit outcome: Became one of the world’s most recognized brands, later integrating healthier menus and sustainability—but only after they were already dominant.

Takeaway? Some brands prove that execution, pricing, and business model can be stronger drivers than purpose alone.

4. So, What’s the Truth? Purpose Alone Won’t Make You Successful—But It Can Be a Competitive Edge

When Purpose Works as a Profit Driver:

? Works when it’s baked into the business model.

? Drives loyalty when it’s authentic and tangible.

? Enhances long-term resilience, especially in times of crisis.

When Purpose Fails as a Profit Driver:

? When it’s just a marketing stunt.

? When it contradicts business actions.

? When it’s not aligned with consumer needs.

Final Thought: Purpose can drive profit—but it’s not a guarantee. It’s a multiplier, not the foundation. The real question isn’t whether purpose causes profit, but how businesses can align purpose with a solid commercial strategy.

What do you think—causality or correlation? Is purpose a true profit driver, or just a nice-to-have? Drop your thoughts below!