Where social purpose andgood business intersect

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ECONOMICPURPOSE

It pays to be good.What does it mean for a business to operate with purpose?

Is the answer a set of well-defined brand values, a corporate responsibility initiative, a clear vision for future growth?

Or is it something more fundamental than that, such as, the very reason a business exists?

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SOUTH AMERICA

96

NORTH AMERICA

482

MEA 113

EUROPE 479

APAC 327

Our methodology

Company role: Company background size: Footprint:

Survey fielded online in July and August 2017*Survey conducted in English among the Economist Group Opinion Leaders and Reader panels.

Geographical coverage included:

Drawing on The Economist Group’s global panel of executives, we conducted an online survey, in association with Salesforce and Genuinely, in July and August 2017. The survey included 1497 business professionals.

Global/MNC 52%

Regional/domestic

48%

C-Suite27%

Managersto MD43%

Senioranalystsor below

30%Over

$1bn 31%Under $1bn

65%

not disclosed 4%

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FINANCIALBUSINESS

HEALTH

ECONOMICPURPOSE

COMMITMENTTO SOCIALPURPOSE

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of executives in companies operating with purpose rate their financial

performance as strong (vs. 42% of their peers)

of consumers are holding companies accountable for the corporate values they express

of employees agree “It is important to me that I work for a company which

operates with a social purpose”

58% 79% 72%Three types of benefits

Financial Stakeholder Reputational

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“Great companies create frameworks that use societal value and human values as decision-making criteria… At great companies [financial] profit is not the sole end; rather, it is a way of ensuring that returns will continue.” *

Rosabeth Moss KanterProfessorHarvard Business School

*Source: “How Great Companies Think Differently” by Rosabeth Moss Kanter, Harvard Business Review, November 2011

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Far from being a passing fad, purpose in business is taking brands closer to a model that allows for measurement of both social and business health.

We refer to it as:

commitment

courage

measurement

authenticity and accountability

ECONOMICPURPOSE

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“The decision to go with a purposeful strategy starts

with an iconoclastic leader.”

Freya WilliamsCEO North America

Futerra

The majority of global executives agree; 66% believe the CEO is the greatest influencer on whether or not a company operates with social purpose.

66%

29% 27% 26%15%

OTHERC-SUITE/

LEADERSHIP

CEO SENIOREXECUTIVES

EMPLOYEESOVERALL

CONSUMERS/CUSTOMERS

COMMITMENT

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COURAGE

2/3executives (62%) believe

that companies need to be willing to take a vocal, public stand on issues

affecting society

1in5see their company as a

public advocate willing to take a vocal stand on social

issues despite potential backlash

fewer than

are concerned about legal risk, as well as

political or public backlash

1in10

nearly

of executives cite riskto performance/

operations as a key barrier to successfully operating

with social purpose

20%

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MEASUREMENTIn an economic purpose model the values at the heart of a brand allow it to transcend its product offering at any one moment, provide ongoing value to the world, and become an enduring institution.

of executives believe operating with social purpose has benefitted the customers their companyserves & the communities in which it operates

believe operating with a social purpose has improved the lives of employees at their company

link it to financial performance and growth

AUTHENTICITY Paying lip service to social purpose does not cut it with today’s consumers.

Backlash grows in the gap between a brand’s declared stance and authentic action —

It won’t do to simply try and “green wash” an organisation using corporate responsibility initiatives as camouflage — this would lead to repercussions.

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agree that a mismatch of social purpose initiatives and

corporate practices can negatively impact a company’s

corporate reputation.

believe it is sometimes hard to tell if a company

cares about a social cause or is just trying to sell more

products/services.

executives report consumers are holding companies accountable for the corporate values

they express.

7 in 1087% 85%

AUTHENTICITY

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ABOUT US

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About The Economist GroupThe Economist Group is the leading source of analysis on international business and world affairs. It aims to offer insight, analysis and services to the world’s most influential people. Underpinning the Group’s ability to fulfil this objective is a commitment to independence, integrity and delivering high quality in everything it does. Clients have been coming to The Economist Group for content for 70 years; the work of its team of 650 experts analysts and editors spanning 203 countries is underpinned by an unrivalled in-house survey panel of global senior executives that bolsters the qualitative and quantitative analysis we undertake. Learn more at: http://ebrandconnect.economist.com/

About SalesforceSalesforce, the global CRM leader, empowers companies to connect with their customers in a whole new way. For more information about Salesforce (NYSE: CRM), visit: www.salesforce.com.

About Genuinely Genuinely— a boutique consulting firm — advises companies to refine and translate their purpose into an actionable roadmap for growth. We believe the world would be a better place if more companies had the courage to live and operate from their purpose, and trusted it was a better path to profit. Learn more at https://genuinely.co/

Visit EconomicPurpose.economist.comto learn more.

@EconGroupMedia

#EconomicPurpose

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