For purpose or for profit? That is the question. Afdhel Aziz, a social entrepreneur and inspirational speaker, says that “good is the new cool”. And while some big-name organizations are slower to embrace the trend, statistics are constantly shifting in favor of brands with a purpose.

 

Here are 10 stats that support the consideration of a purpose-driven model, and build the case for why good is good for business.

 

Customers and employees prefer purpose over profit:

1.     77% percent of American consumers are motivated to purchase from companies committed to making the world a better place.

2.    72% of respondents in this specific survey believe purpose should receive more weight than profit.

3.    95% of employees believe businesses should benefit all stakeholders — not just shareholders.

4.    Respondents in this survey believe business is not doing enough to address societal problems, including climate change (52%), economic inequality (49%), workforce reskilling (46%) and trustworthy information (42%).

 

Related: Socially responsible brands can boost brand value by up to 30%.

Organizations can be just as profitable with a purpose-driven model:

5.    In this study, the most profitable companies out of 14,000 succeeded over the long haul because they focused on maximizing purpose rather than profit.

6.    A study found that 70% of purpose-driven shoppers pay an added premium of at least 35% more for sustainable purchases.

 

Buyers alter their behavior according to company conduct:  

7.    54% of American consumers say they have stopped using a company’s products because of its public position on certain issues.

8.   During 2020, 50% of consumers report trying new brands; 63% of them say they are likely to stick to them.

9.    One-third of all consumers today will stop buying their preferred products if they lose trust in the brand.

10. Across 25 countries surveyed, an average of 70% of respondents said they would buy from brands they believe reflect their own principles.

 

If your organization is on the cusp of investigating ways to become more purpose-driven, consider this a sign. Based on these findings, altering a business model to become more socially responsible could be good for people, planet and profit.

 

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