A 2019 report by EY neatly encapsulates the definition and value of purpose driven companies. It initially defines purpose as “an aspirational reason for being that is grounded in humanity and inspires a call to action,” then creates a more practical definition for business: “an aspirational reason for a business that is grounded in humanity and inspires a call to action.”

EY goes on to say “a purpose-driven organization/ company is therefore one that endeavors to show its stakeholders (consumers/clients and employees) that it takes purpose seriously by actively demonstrating all measures that it’s put in place to achieve this milestone.”

Why is Purpose So Compelling to Stakeholders?

Peter Fisk states that “Purpose-driven companies are more ambitious, they attract the best talent, inspire richer innovation, make faster decisions, are more trusted, have greater loyalty, and attract more investment.” The afore mentioned EY survey reveals that a steadily rising number of organizations are successfully driving purpose into their businesses. What leads to their success?

Per EY, there are three key factors:

A PwC study adds a fourth reason: purpose-driven companies connect more strongly to a younger generation. The study posits that “millennials who have a strong connection to the purpose of their organization are 5.3 times more likely to stay”. In a world that evolves every day, millennials are always seeking something meaningful to train their focus on and gain satisfaction from. Purpose presents that anchor or reference point on which millennials draw their gratification from. Fresh consumer data shows that customers view purpose-driven brands as being more caring and, as a result, are more loyal to them.

Purpose-Centered Pushes Purpose-Driven To A New Level

At Stuart McFaul Associates, we believe that purpose-centered is even more powerful than purpose-driven. The focal point is critical: the more focused you are on your purpose objective, the more likely you are to be always conscious of why you do what you do. It’s a success mindset that helps you get up in the morning enthusiastic, always keeps your purpose in sight, and helps you more easily enroll others in your cause. Here’s the difference at a glance:

Self-motivatedYou’re being pushed
Centered; it’s your focusIt’s behind you, making it easy to lose focus
A target others can see and move towards as wellNot easy to share with others who don’t feel the same “push”