Crafting and Communicating Purpose: Strategies for Companies to Engage Stakeholders Effectively

Now more than ever, having a clear, compelling purpose isn’t just an option—it’s essential. Purpose-driven companies that align their goals and unique selling proposition with a greater cause attract not only loyal customers but also passionate employees, suppliers and other business partners, shareholders, investors and more. While defining this purpose is critical, ensuring it resonates and connects with all stakeholders—internal and external—is equally important.?

Let’s explore some practical strategies and look at some companies that have defined their purpose and communicate it effectively.?

Defining Your Company’s Purpose: Start from Within?

The foundation of any purpose-driven business lies in its mission and values. For a purpose-driven company, that purpose should reflect a commitment that extends beyond profit to address broader societal or environmental issues. This process begins internally, by engaging employees, leadership, and key partners to craft a shared vision.?

1. Engage Your Team in Defining Purpose?

Your employees are your company’s most vital assets. When it comes to defining an authentic, actionable purpose, their insights are crucial. Engaging your teams in open discussions through workshops, surveys, or focus groups can lead to meaningful alignment between the company’s core activities and its broader mission.??

Even if your workforce is too large to gather ideas from every employee, when you’re making changes to your mission or message, it’s important for each member of your company to feel included and heard. Designate representatives for each of your teams and allow them to speak on behalf of the group. Then, once your new mission message is set, show them how you incorporated their insights and priorities into the final statement. When they can see their values and ideas reflected in the company’s mission, they’ll be eager to internalize it and work to drive it forward.??

Remember, the people on your team are the ones you’ll need to trust to carry your message out to your other stakeholders. They can become strong brand ambassadors of a mission they believe in, or they could shoot down the value of your brand if they feel it doesn’t align with their own goals and beliefs.?

2. Ensure Authenticity?

Stakeholders can spot inauthenticity—or “spin”—a mile away. Avoid aspirational language that doesn’t reflect your day-to-day operations. An authentic purpose should be woven into everything you do—from how you treat your employees and manage your supply chain to how you engage with the community and protect the environment.?

Who Gives A Crap is a perfect example of a brand with a clear, authentic approach. They’re a toilet paper company with a mission to improve sanitation globally. As a certified B Corp, they donate 50% of their profits to build toilets and improve sanitation in developing countries, aligning its products with a clear social purpose. Who Gives a Crap’s transparency is evident in its regular impact reports, where they share detailed updates on the donations they make and the specific projects they fund. Their authenticity and transparency have resonated with customers, helping the company build a loyal following while addressing a critical global issue.??

3. Make It Clear and Actionable?

A well-defined purpose should be concise and easy to understand. Think of it as a guiding star for every decision your company makes. But it also needs to be actionable—something that drives daily operations and strategic initiatives.?

Take Blueland , for instance. Their purpose is to reduce plastic waste by offering eco-friendly, refillable cleaning products. Blueland makes it easy for both customers and employees to understand and participate in their goal to protect the environment. With each purchase, customers actively contribute to minimizing single-use plastic, a mission that’s both simple and actionable. This clear, impactful purpose encourages ongoing engagement and loyalty, as customers feel connected to the brand's environmental mission with every refill.??

Once your purpose is clearly defined, the next challenge is communicating it in a way that engages your stakeholders—customers, employees, suppliers, board members, investors, and other business partners. Purpose is more than a statement on your website; it should permeate every decision, interaction, and communication channel.?

4. Tailor Your Message for Different Stakeholders?

Not every stakeholder needs to receive the same message. Customize your communications to resonate with each group. For example:?

• Customers want to know how your purpose adds value to them or the causes they care about. Make sure your messaging highlights how they contribute to a greater good through their purchases.?

• Employees need to feel connected to the purpose in their everyday work. Regularly share stories of how the company’s mission is being realized, and how their roles contribute to the bigger picture.?

• Board members and investors look for the long-term stability that a strong purpose can provide. Show them the business case—purpose-driven companies have been shown to outperform competitors by building strong customer and employee loyalty and reducing risks through ethical practices.?

• Suppliers and other strategic business partners may not seem like a high-priority audience, but if your suppliers don’t align with your purpose, it can undercut the overall impact of your actions. The bottom line is: if they’re part of what you do, they should align with the “why” and the “how” of your mission. Otherwise, customers, employees, and even investors may feel that something is amiss behind the scenes. Share your mission with your partners and suppliers to ensure their ethos and practices align. If not, it may motivate them to step up their practices in order to be part of your supply chain.?

By adapting your message to each audience, you ensure that every stakeholder understands how they fit into the larger purpose.?

5. Leverage Transparency and Storytelling?

Transparency is key to building trust with your stakeholders. Companies that openly share their business practices, challenges, and successes foster stronger relationships with customers, employees, and investors alike.??

And the way you share these details is just as important as the details themselves. Purpose-driven organizations can embrace storytelling as a powerful tool to highlight their ethical actions and the tangible impact they’re making, as well as the challenges they’re working to overcome.??

Again, when it comes to sharing your brand’s stories, authenticity is essential. They should inform and inspire your readers, elicit an emotional response, and motivate them to act. If they feel more like bragging or sales pitches—skimming over any bumps in the road you’ve had to cross along the way—they can backfire, pushing your audience away.??

Sharing real-world outcomes—like how sustainability initiatives are reducing environmental footprints or how community investments are improving lives—demonstrates the company’s commitment to its purpose. This approach helps stakeholders connect emotionally with your mission, beyond just products and services.?

According to the LRN Benchmark of Ethical Culture from 2023, companies that cultivate the strongest ethical cultures see roughly a 40% improvement across key business metrics, including customer satisfaction, employee loyalty, innovation, adaptability, and overall growth. These findings highlight the significant competitive edge that ethical leadership and purpose-driven practices can bring to a business. Ultimately, transparency combined with purposeful storytelling is a powerful way to show stakeholders that your company is truly walking the walk, not just talking the talk.?

6. Use Every Channel Effectively?

Purpose isn’t just showcased in an annual report or communicated in a marketing campaign—it should be visible across all channels, both internal and external. From your website, social media platforms and customer newsletters to internal communications and investor briefings, your purpose should be present everywhere.?

The Parks Project demonstrates this beautifully. They’re a certified B Corp that donates a portion of their proceeds to the preservation and protection of national parks. The company actively communicates its purpose across all channels, regularly updating customers on how their purchases contribute to various park projects. Whether it’s supporting habitat restoration, youth education programs, or trail maintenance, Parks Project uses storytelling to connect its community of customers to the positive impact they’re making together. By clearly linking product sales to specific outcomes in parks, the brand builds trust and loyalty with environmentally conscious consumers.?

7. Measure and Report Impact?

Stakeholders want to see that your purpose is making a real difference. Regularly track and report on the progress you’re making toward your purpose-related goals. This could take the form of sustainability reports, community impact assessments, or updates on progress toward specific commitments like carbon neutrality.?

By tracking and sharing your progress, you hold your organization accountable, making it clear that your purpose is more than just words—it’s an integral part of your company’s strategy, operations, and growth.?

The Benefits of Purpose-Driven Communication?

Effectively communicating your purpose isn’t just about building trust—it’s about creating a lasting bond with stakeholders. Companies that succeed in this area often see:?

• Increased customer loyalty, as consumers gravitate toward brands that align with their values and tell people in their circles of influence about it.?

• Stronger employee engagement, as workers find meaning in their roles and contribute to a cause they believe in.?

• Board and investor confidence, as purpose-driven businesses often outperform competitors financially over the long term.?

Purpose as a Strategic Advantage?

In a world where stakeholders increasingly prioritize ethics, sustainability, and social responsibility, a clearly defined and well-communicated purpose can be a powerful differentiator. By engaging your team, being authentic, and communicating your purpose effectively across channels, your company can foster meaningful relationships that drive both business success and social good.?

We specialize in helping purpose-driven companies clarify and amplify their message to connect with their stakeholders. If you're ready to define or refresh your company’s purpose and share it with the world, reach out to us . Together, we can make sure your purpose strengthens your brand identity, drives the positive change you seek, and contributes to the company’s success—both within and beyond your organization.?