Companies that create stronger connections with their customers and employees see a higher return on investment (ROI).

This is especially true for purpose-driven brands, which according to Deloitte, witness higher market share gains and grow three times faster on average than their competitors, all while achieving higher workforce and customer satisfaction.

Let’s look at how corporate leaders who invest in purpose see a significant ROI within their company.

Defining Purpose Leads to Better Business Strategies

Purpose is not a marketing strategy; it’s a business strategy. Companies that embrace their purpose outperform those that don’t: some studies suggest that customers are “four to six times more likely to buy from, trust, champion, and defend companies with a strong purpose.”

In addition, purpose-driven brands have higher employee engagement which translates into better financial performance long-term.

If you want your business to thrive, consider how you can use your company’s mission or vision statement as a guide for decision-making. How do these goals align with your customers’ values? What does this look like in practice? If you don’t know what your purpose is yet, start by reflecting on the ways in which your work contributes to society and causes positive change in people’s lives—or could do so if it was done differently or better than others’.

Purpose-driven Companies Have Better Employee Engagement.

Employee engagement is an important part of any business, and purpose-driven companies have been shown to have better employee engagement. This can be attributed to the fact that employees feel like they’re working for a company with a bigger purpose than just making money.

Employees feel like they are part of something greater than themselves — whether it’s helping people or improving the world — and this makes them more willing to go above and beyond their job duties.

Additionally, when employees do their jobs well, they can see their hard work make an impact on society or individuals in need as opposed to just getting paid by someone else who doesn’t really care about what you’re doing (i.e., your salary).

Balancing Purpose and Profit 

Of course, while purpose is crucial for any organization, if your company’s products or services begin to suffer and profit margins are shrinking due to an overemphasis on purpose, that equation does not equal success.

Factors like analyzing competition and providing an innovative, valuable product or service must be tempered with your corporate purpose. Your core message and corporate values could be the strongest in the market, but if your products don’t match that level of execution, it will have a negative financial impact on your company.

Ultimately, a balance must be struck between building a business that is constantly innovating, and one that has a solid purpose. A company cannot neglect focusing on quality, understanding customers better, adopting new technology, and becoming economically efficient. These, along with establishing purpose, are key facets to driving business success.

On the other hand, profitability runs hand-in-hand with your perspective on purpose. As you make money, leadership needs to provide a platform to give back. And sure, giving back can mean giving a check to a charity or sponsoring the development of some external resources in your community, but ultimately when giving back comes alive is when people get involved!

Purpose goes the last mile when employees, partners, customers, can see how it is making a tangible impact in their life and making the world a better place for someone.

Establishing Purpose Makes Leadership More Effective

Purpose-driven companies outperform their competitors because employees and consumers want to be associated with brands that reflect their values. A recent Harvard Business Review article by David Robertson, author of The Power of Purpose, found that the most effective leaders are able to create a sense of purpose within an organization.

In fact, he found that people who felt a higher sense of purpose were more likely to stay with a company for longer periods than those who didn’t. That’s because when a company’s “why” is reflected in everything they do—from how they hire and train employees to how they treat customers—everyone wants to work there.

In this kind of environment, financial return is sure to follow the investment a leader has made into inspiring the workforce to fulfill their purpose and engage with the company’s purpose.

A Company’s Purpose Changes as it Grows

Many companies find that their “why” changes over time as they grow, so it’s important to revisit these statements regularly, especially as you see increased success.

The “why” of a company is the reason it exists. It’s not necessarily the same thing as its mission statement or business model; rather, it answers the question why do you exist for your customers?

The idea is to create a meaningful purpose for your employees and customers—and even yourself! This can be done by coming up with a single sentence that captures what you believe in and are committed to:

  • [Company Name] exists because…

  • [Company Name] provides solutions so that…

These are tangible statements that indicate how your brand is uniquely fulfilling its purpose. While this seems a bit simplistic, if you can effectively complete these statements and show the unique value of your company’s purpose, then customers and employees alike will find more value in your company.

For any leader trying to overhaul a company’s purpose and business strategy, it’s important to focus on the right message that resonates with your target audience, employees, and stakeholders.

By taking a step back and looking at your company’s mission, vision and values statements. If those messages don’t reflect what you want to achieve with your business, then it’s time for an overhaul!

Mark Bourgeois is an accomplished senior executive, both at a strategic and managerial level, with a strong history of providing leadership, innovation, business improvement, and change management.