Putting purpose at the heart of a new business...

For last two years of my life, I’ve worked with many talented individuals who have been focused on standing up our new business, Haleon.?

?So far this year, we’ve shared our prospectus, listed the company on the London and New York Stock Exchanges and shared our first trading update…

To say I’m proud is an understatement. Haleon’s purpose of delivering better everyday health with humanity has fuelled our ambitions as we’ve weathered many a challenge in getting to this point.?We’ve been sharing our equity story with current and potential investors, we’ve been building our infrastructure that will allow us to deliver on our purpose and support our many brands that I hope help you on your everyday health journey…Centrum, Sensodyne, Advil, Panadol, Tums, Emergen-C, Eno, Polident, Chapstick and many others.

Over the last few months, I have become obsessed with the power of purpose and how we leverage our purpose to help is achieve financial growth, motivate our employees, and grow our customer base.

Purpose and profit are not mutually exclusive. In the past, there was this hard line between companies being either purpose-or-profit driven, and that companies must choose and stay in their lane, but there is an overwhelming body of evidence that purpose-driven companies are particularly efficacious at creating and growing profit.

There are many reasons for this, including, purpose driven companies are better equipped to focus their teams on an aligned goal which builds trust with investors, thus allowing for financial growth. Purpose is the “new go-forward strategy” as 85% of business leaders believe that being a purpose-driven company drives profit (Porter Novelli Executive Purpose Study, September 2020). A purpose that is founded on inclusivity and sustainability, which are reflective in Haleon’s purpose, will also drive profit.

Ethnically and gender-diverse companies are 36% and 25%, respectively, to have better financial returns and performance (McKinsey, Diversity Wins, 2020) and sustainable companies are more likely to attract a premium price for their offerings, but also outperform non-environmental, social, and corporate governance counterparts. (IBM, Sustainability at a Turning Point, April 2021; Morgan Stanley Institute for Sustainable Investing, 2021).

Inclusivity and sustainability are critical in motivating employees. ?We are Haleon are building a workforce that is reflective of our customer base.?This is about both people and actions.?More than half of employees expect their employer to address social justice issues and more than two fifths would look elsewhere for work if they felt their employer wasn’t doing enough in this space (2021 Porter Novelli Business & Social Justice Study). In fact, 60% of employees agree that the strength of a company’s diversity program is pivotal in not only being attracted to a company but also their retention (Edelman Trust Barometer Special Report: Brands and Racial Justice in America, June 2020).

Sustainability is also key in attracting employees, particularly a younger workforce as 60% strongly agree that “the more socially and environmentally responsible my company becomes, the more motivated and loyal I become (as an employee)” (Radically Better Future: The Next Gen Reckoning for Brands, December 2020). Assessing and implementing trends into the purpose of burgeoning businesses is a means to both attracting and motivating employees.

Customers support companies that make a positive impact on society. Haleon is focused on serving communities and people across the globe, through the delivery of better everyday health with humanity.?We are committed to providing jobs in an inclusive culture, and by working to reduce our environmental footprint.?This is important to note because companies that work to make a positive difference through their products, services, and operations are supported by 44% of people under 30, suggesting that the more beneficial a company is to society, the more support they’ll have from the general public ?(Radically Better Future: The Next Gen Reckoning for Brands, December 2020).

Companies focussed on inclusivity are more likely to garner support from potential customers, as many would buy or boycott a brand based on its view and response to racial injustice (Edelman Trust Barometer Special Report: Brands and Racial Justice in America, June 2020). Aligning our purpose with our customers and consumers sets the stage for us to then follow through with actions that reinforce our promise and, hopefully, develop trust, thus enabling businesses to organically grow our customer base.

Our purpose is at the heart of everything we do at Haleon, but it is not merely a ‘nice-to-have.’ Our purpose is a smart strategic path to a healthy and growing business. ?It’s been a master class in building culture as we’ve created this new company. I’m not na?ve enough to think we are the only ones who cracked the code in this space.?There are many other ways purpose can benefit businesses and society and I welcome your thoughts on other companies that are delivering on their purpose and promise.