“Purpose-driven businesses aren’t just changing the world. They’re rewriting the rules of success. When you lead with purpose, everything you do has a foundation built to outlast the competition.“

— Jon Duschinsky

Key Insight : No matter how competitive your market is, you can’t afford not to embrace purpose in your business. 

Food for Thought  

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In this edition of the centrepoint, let’s do a quick thought experiment. 

Let’s imagine a world where all organizations (regardless of whether they are companies or non-profits) actively work to make the world a better place. It sounds like a fairy tale, right? 

Well, buckle up, because this isn’t just some idealistic fantasy. This is a business model that smart organizations are embracing right now—and are beating their competitors with in the process. 

Welcome to the Purpose Economy, where doing good and doing well go hand in hand. These aren’t 20th Century paternalistic, button-down organizations. We’re talking about companies that are rewriting the rules of the game, proving that you can have your cake and eat it too—or, in this case, make the world a better place while making healthy and growing profits.  

Now, I know what you’re thinking. “Sure, it sounds great on paper, but Purpose Economy smacks of another marketing gimmick.” And perhaps: “It’s all just virtue signaling and inauthenticity!”

I hear you. And there is nothing wrong with being skeptical. 

But while it’s true that some organizations might try to jump on the purpose bandwagon without really walking the talk, the real deal stands out from the crowd in a very good way. Customers, investors, and supporters alike take notice.

It’s not a flash-in-the-pan trend either—here today, gone tomorrow. Rather, while Purpose is still on the margins today, your kids and grandkids will be baffled at the idea that companies in the early 21st century just made money.  

Take Lush Cosmetics. Since 1995, these folks have been walking the walk when it comes to ethical sourcing and sustainable practices. They’re not just selling soap. They’re selling a revolution in recyclable packaging. Which often translates to much less packaging. And guess what? Customers have been lathering it up for decades now. 

Or consider Nudie Jeans, the denim company that’s giving fast fashion a run for its money. Free repairs? Check. Product take-back program? You bet. They’re not just selling jeans. They’re selling a whole new way of thinking about fast fashion vs. sustainable clothing. And consumers are queuing up to buy into it, with revenues growing to near half a billion. 

 “But what about the bottom line? Purpose is great, but it doesn’t pay the bills.”

Okay, let’s consider some cold, hard facts. Purpose-driven companies are growing three times faster than their competitors. They have a history of outperforming the market by up to 42%. And get this: today’s consumers are four to six times more likely to buy from, protect, and even champion these brands. That’s why savvy investors love these companies. 

Still not convinced? How about this? A significant portion of consumers—especially Gen Zers and Millennials—are willing to pay more for products from companies committed to positive social impact. Yes, that’s the sound of ringing cash registers. 

“Sounds great for big corporations, but what about us little guys?”

Size doesn’t matter when it comes to purpose. Just look at Ecosia, the little search engine that could. They’re using their profits to plant trees that they’ll never take shade beneath. And they’re not just doing the thing; they’re showing their work with transparent reporting it uses to help build trust trust much faster than it takes for actual trees to grow. 

What’s more, building purpose-driven leadership into the DNA of your company leads to much faster growth, so you may not be so little for very long. 

 “But it’s so complicated to implement!”

Sure, change can be tough. But you know what’s tougher? Watching your competitors leave you in the dust.

Purpose-driven companies are magnets for top talent, especially among today’s young workforce. They’re hotbeds of innovation, with up to 30% higher levels of innovation. And it stands to reason, this all adds up to a happier, more engaging company culture, right? 

Look at Bombas, the sock company with a simple yet powerful mission: to help those in need. For every pair of socks sold, Bombas donates a pair to homeless shelters. They’ve expanded this model to include other clothing items, donating over 50 million items to date. Bombas proves that even everyday products can be vehicles for significant social change.

 “We can’t afford to focus on purpose in our cutthroat industry.”

Can’t afford it? Really, you can’t afford not to. In today’s marketplace, purpose is your competitive advantage. It’s your differentiator, your brand builder, and your customer loyalty program all rolled into one. Just ask Impossible Foods how being purpose-driven is working out for them in the cutthroat food industry.

And, finally, let’s talk talent. 

In the war for the best and brightest, purpose is your secret weapon. Millennials and Gen Z aren’t just looking for a paycheck; they’re looking for a cause. Give them purpose, and they’ll bring innovation to the table every day of the week. Having a clear and activated purpose can be the deal clincher to bringing their talent to your company—and not to the competition. 

The verdict?

Purpose isn’t just a nice-to-have. It’s your shield against economic uncertainty, your magnet for customer loyalty, your fountain of innovation, and your money in the bank.

Drop me a line at jon@jonduschinsky.com.

Or, book an appointment here.