What you need to know about brand purpose in today’s environment

There has been some talk of investors pushing back against Blackrock — an investment manager that has been a champion of a purpose-driven approach. Is it a harbinger of a larger migration away from brand purpose?

The rise of purpose

In recent years, the concept of brand purpose gained significant traction. Many companies embraced the idea of creating a positive impact on society while pursuing profits. This approach, often referred to as “doing well by doing good,” gained traction as consumers, investors, and employees increasingly demanded more from the companies they engaged with.

From shareholders to stakeholders

One big reason for the success of purpose-driven brands was a critical shift in thinking that happened in these organizations. They realized that they no longer could be beholden to only the shareholders. They had to expand their responsibility to all stakeholders. That included customers and prospects, employees, and the communities they served.

When all these stakeholders were taken into consideration, it changed how the organization looked at why it existed. Or, in other words, its purpose. As this became the focus, the brands discovered the boons. Purpose-driven brands enjoyed higher…