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PEOPLE
WITH
PURPOSE
WHY PURPOSE MATTERS
June 2017
THE BUSINESS CASE FOR PURPOSE
PURPOSE
MATTERS
TO YOUR
CUSTOMERS
Six in 10 citizens believe doing
good should be part of a brand’s
DNA, beyond its everyday
business and best operations
practices
6
10
Half agree that brands have more
power to solve social ills than
governments do
50%
62% will not buy if a brand fails to
meet its obligations to consumers,
the community, and society at
large
62%
Edelman Earned Brand 2016
BEYOND
CORPORATE
SOCIAL
RESPONSIBILITY
IT ISN’T JUST ABOUT
PHILANTHROPY, OR
CORPORATE SOCIAL
RESPONSIBILITY.
IT’S SMART BUSINESS.
CONSUMERS AND EMPLOYEES
EXPECT COMPANIES TO BE
AUTHENTIC, TRANSPARENT,
AND RESPONSIVE TO
COMMUNITY NEEDS.
Ingrid Embree
Senior Director of Strategic
Partnerships at GlobalGiving
PURPOSE
MATTERS
TO YOUR
EMPLOYEES
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
MILLENNIALS:
THE MOST PURPOSE –
ORIENTED GROUP
TO EVER ENTER
THE WORKFORCE
WILL ACCOUNT
FOR 75% OF
THE WORKFORCE
BY 2025*
*FASTCOMPANY
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
PURPOSE-DRIVEN
COMPANIES
GET MORE
ENGAGEMENT
ON LINKEDIN
3.5x more company followers per employee
33% better Inmail acceptance rate
117% more LinkedIn Company Page views per
employee
74% of LinkedIn members place a high value on
finding work that delivers on a sense of purpose
PURPOSE AT WORK, 2016 GLOBAL REPORT
COMMISSIONED BY LINKEDIN AND IMPERATIVE
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
ORGANISATIONS
WITH A STRONG
SENSE OF PURPOSE
REPORTED 73% OF
EMPLOYEES WERE
FULLY ENGAGED,
COMPARED TO 23%
OF EMPLOYEES IN
AN ORGANISATION
WITHOUT A SENSE
OF PURPOSE
Deloitte Survey: Strong Sense of Purpose Key
Driver of Business Investment
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
“Only once an organization is authentically
led with purpose can employees truly begin
to appreciate what it means for them
and their work.
This next level of activation begins with
managers and coaches, who hold the power
to guide employees in building a personal
connection to organizational purpose.
To be fully engaged, employees need to find
meaning in their daily work.”
PWC PUTTING PURPOSE TO WORK REPORT
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
GALLUP REPORT - STATE OF THE AMERICAN WORKPLACE
ENGAGED
EMPLOYEES
LEAD TO
BETTER
BUSINESS
OUTCOMES
WHEN COMPARED WITH BUSINESS UNITS IN THE BOTTOM QUARTILE OF ENGAGEMENT,
THOSE IN THE TOP QUARTILE REALIZE IMPROVEMENTS IN THE FOLLOWING AREAS:
Absenteeism
Turnover
(High-Turnover
Organizations)
Turnover
(Low-Turnover
Organizations) Shrinkage
Safety
Incidents
Patient Safety
Incidents
Quality
Defects
(Defects)
Customer
MetricsProductivity Sales Profitability
Lower Lower Lower Lower
Fewer Fewer Fewer
HigherHigher Higher Higher
41% 24% 59% 28%
70% 58% 40%
10%17% 20% 21%
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
Top-quartile companies
are winning the war for talent,
measured through employee
Net Promoter® scores (eNPS),
a widely used indicator of
employee loyalty and enthusiasm.
Top performers’ eNPS is 23,
compared with a low of -56
for others in the survey.
Taking the measure of your
innovation performance
Bain & Company - 2013
Higher employee loyalty
23%
-56%
-80%
-60%
-40%
-20%
0%
20%
40%
High performer Other
Employee loyalty (NPS score)
PURPOSE
MATTERS
TO YOUR
PROFIT
MEANINGFUL
BRANDS HAVE
OUTPERFORMED
THE STOCK MARKET
BY 206% OVER
THE LAST 10 YEARS
MEANINGFUL BRANDS INDEX
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
FIRMS OF ENDEARMENT; COMPANIES THAT
PRACTICE “CONSCIOUS CAPITALISM”
PERFORM 10X BETTER, TONY SCHWARTZ
THE 18 PUBLICLY
TRADED FIRMS OF
ENDEARMENT
OUTPERFORMED THE
S&P 500 INDEX BY A
FACTOR OF 10.5
OVER THE YEARS
1996-2011.
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
“THE BRANDS THAT HAVE
NOT YET CAUGHT ONTO THIS,
AND ARE NOT THINKING ABOUT
HOW THEY WILL EMBED
ENVIRONMENTAL AND
SOCIAL SUSTAINABILITY
WITHIN THEIR BUSINESS MODEL
WILL NOT BE AROUND
IN THE NEXT 50 YEARS”
- KEITH WEED
CHIEF MARKETING OFFICER OF UNILEVER
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
EY - THE BUSINESS CASE
FOR PURPOSE REPORT
IN THE LAST THREE YEARS:
58% OF COMPANIES THAT
PRIORITISED PURPOSE
ACHIEVED 10% OR MORE
REVENUE GROWTH
OVER 3 YEARS
10
%
$
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
85%
PURPOSE AT WORK, 2016 GLOBAL REPORT
COMMISSIONED BY LINKEDIN AND IMPERATIVE;
EY - THE BUSINESS CASE FOR PURPOSE REPORT
IN THE LAST THREE
YEARS:
42% OF NON-PURPOSE
LED COMPANIES
SHOWED A DROP IN
REVENUE VS. 85% OF
PURPOSE-LED
COMPANIES
SHOWED POSITIVE
GROWTH
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
IN THE LAST THREE
YEARS:
58% OF COMPANIES WITH
A CLEARLY ARTICULATED
AND UNDERSTOOD
PURPOSE EXPERIENCED
GROWTH OF +10% VS.
ONLY 42% OF COMPANIES
NOT PRIORITIZING
PURPOSE
PURPOSE AT WORK, 2016 GLOBAL REPORT
COMMISSIONED BY LINKEDIN AND IMPERATIVE;
EY - THE BUSINESS CASE FOR PURPOSE REPORT
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
‘TODAY WE HAVE A VISION TO MAKE
SUSTAINABLE LIVING COMMONPLACE.
THIS IS NOT BECAUSE
IT IS A “NICE TO HAVE”;
OUR SUSTAINABLE LIVING BRANDS –
SUCH AS LIFEBUOY, BEN & JERRY’S
AND DOVE – ARE GROWING AT
TWICE THE RATE OF THE REST OF
OUR PORTFOLIO AND DELIVERING
MORE THAN HALF OUR GROWTH.
THIS IS AN ECONOMIC DECISION
AND IT IS DRIVING OUR BUSINESS.’
- KEITH WEED
CHIEF MARKETING OFFICER OF UNILEVER
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
FORTUNE 100 BEST
COMPANIES TO WORK
FOR® LIST HAS
OUTPERFORMED
THE STOCK MARKET
BY NEARLY 3X
FROM 1998–2016
-GREAT PLACE TO WORK REPORT
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
JOHN KOTTER AND JAMES
HESKETT’S ANALYSIS OF FIRMS
WITH A STAKEHOLDER CULTURE
SHOWED A DIFFERENCE
BETWEEN A 900% AND A 75%
APPRECIATION IN EQUITY
VALUE AND A DIFFERENCE OF
756% VERSUS 1% FOR NET
INCOME GROWTH
JOHN KOTTER AND JAMES HESKETT,
CORPORATE CULTURE AND PERFORMANCE, 1992
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
ETHISPHERE’S WORLD’S
MOST ETHICAL COMPANIES
HAVE COLLECTIVELY
OUTPERFORMED THE S&P
500 EVERY YEAR SINCE THE
INCEPTION OF THE PROGRAM
IN 2007, BY AN AVERAGE OF
7.3% ANNUALLY
- ETHISPHERE
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
THE GALLUP
GREAT WORKPLACE AWARD
COMPANIES EXPERIENCED
115% GROWTH IN EPS,
WHILE THEIR COMPETITORS
EXPERIENCED 27% GROWTH
OVER THE SAME TIME
PERIOD
GALLUP REPORT - STATE OF THE AMERICAN WORKPLACE
115%
GROWTH IN
EARNINGS PER
SHARE
“WE LOOK AT THE SUSTAINABLE DEVELOPMENT GOALS
(SDGS) AND SAY, ‘THERE IS A MARKET HERE’. YOU CAN
ACTUALLY QUANTIFY THE MARKET POTENTIAL OF FOR-
PROFIT BUSINESS TO MEET THE NEEDS OF THE SDGS.
GETTING BUSINESS TO UNDERSTAND THAT THIS IS ABOUT
NEW MARKETS, NEW BUSINESS OPPORTUNITIES, AND NEW
BUSINESS MODELS — INSTEAD OF CHARITY OR THE
MANDATE OF THE DEVELOPMENT AGENCIES, THE
GOVERNMENT, AND THE NGOS IS A FUNDAMENTAL SHIFT
THAT CAN BE VERY EMPOWERING.”
- MARK KRAMER - CO-AUTHOR CREATING SHARED VALUE
PURPOSE
MATTERS
TO
LEADERS
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
46 PERCENT SAID
THEIR COMPANY
HAS A STRONG
SENSE OF PURPOSE
44 PERCENT SAID
THEIR COMPANY
IS TRYING TO
DEVELOP ONE
ONLY A MINORITY SAID THEIR COMPANY
CURRENTLY RUNS IN A PURPOSE-DRIVEN WAY
46% 44%
EY - THE BUSINESS CASE FOR PURPOSE REPORT
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
90 PERCENT OF EXECUTIVES
SURVEYED SAID THEIR
COMPANY UNDERSTANDS
THE IMPORTANCE OF
SUCH PURPOSE, BUT ONLY
46 PERCENT SAID IT INFORMS
THEIR STRATEGIC
AND OPERATIONAL
DECISION-MAKING
EY - THE BUSINESS CASE FOR PURPOSE REPORT
© People With Purpose 2017
PEOPLE
WITH
PURPOSE
Why Purpose Matters
MOST EXECUTIVES BELIEVE PURPOSE MATTERS
EY - THE BUSINESS CASE FOR PURPOSE REPORT
OF EXECUTIVES SURVEYED SAID A STRONG SENSE OF
COLLECTIVE PURPOSE DRIVES EMPLOYEE SATISFACTION89%
84%
80%
SAID IT CAN AFFECT AN ORGANIZATION’S
ABILITY TO TRANSFORM, AND
SAID IT HELPS INCREASE CUSTOMER LOYALTY
Purpose with the
Power to Transform
Your Organization
WHY PURPOSE MATTERS

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WHY PURPOSE MATTERS

  • 1. PEOPLE WITH PURPOSE WHY PURPOSE MATTERS June 2017 THE BUSINESS CASE FOR PURPOSE
  • 3. Six in 10 citizens believe doing good should be part of a brand’s DNA, beyond its everyday business and best operations practices 6 10 Half agree that brands have more power to solve social ills than governments do 50% 62% will not buy if a brand fails to meet its obligations to consumers, the community, and society at large 62% Edelman Earned Brand 2016
  • 4. BEYOND CORPORATE SOCIAL RESPONSIBILITY IT ISN’T JUST ABOUT PHILANTHROPY, OR CORPORATE SOCIAL RESPONSIBILITY. IT’S SMART BUSINESS. CONSUMERS AND EMPLOYEES EXPECT COMPANIES TO BE AUTHENTIC, TRANSPARENT, AND RESPONSIVE TO COMMUNITY NEEDS. Ingrid Embree Senior Director of Strategic Partnerships at GlobalGiving
  • 6.
  • 7. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters MILLENNIALS: THE MOST PURPOSE – ORIENTED GROUP TO EVER ENTER THE WORKFORCE WILL ACCOUNT FOR 75% OF THE WORKFORCE BY 2025* *FASTCOMPANY
  • 8. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters PURPOSE-DRIVEN COMPANIES GET MORE ENGAGEMENT ON LINKEDIN 3.5x more company followers per employee 33% better Inmail acceptance rate 117% more LinkedIn Company Page views per employee 74% of LinkedIn members place a high value on finding work that delivers on a sense of purpose PURPOSE AT WORK, 2016 GLOBAL REPORT COMMISSIONED BY LINKEDIN AND IMPERATIVE
  • 9. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters ORGANISATIONS WITH A STRONG SENSE OF PURPOSE REPORTED 73% OF EMPLOYEES WERE FULLY ENGAGED, COMPARED TO 23% OF EMPLOYEES IN AN ORGANISATION WITHOUT A SENSE OF PURPOSE Deloitte Survey: Strong Sense of Purpose Key Driver of Business Investment
  • 10. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters “Only once an organization is authentically led with purpose can employees truly begin to appreciate what it means for them and their work. This next level of activation begins with managers and coaches, who hold the power to guide employees in building a personal connection to organizational purpose. To be fully engaged, employees need to find meaning in their daily work.” PWC PUTTING PURPOSE TO WORK REPORT
  • 11. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters GALLUP REPORT - STATE OF THE AMERICAN WORKPLACE ENGAGED EMPLOYEES LEAD TO BETTER BUSINESS OUTCOMES WHEN COMPARED WITH BUSINESS UNITS IN THE BOTTOM QUARTILE OF ENGAGEMENT, THOSE IN THE TOP QUARTILE REALIZE IMPROVEMENTS IN THE FOLLOWING AREAS: Absenteeism Turnover (High-Turnover Organizations) Turnover (Low-Turnover Organizations) Shrinkage Safety Incidents Patient Safety Incidents Quality Defects (Defects) Customer MetricsProductivity Sales Profitability Lower Lower Lower Lower Fewer Fewer Fewer HigherHigher Higher Higher 41% 24% 59% 28% 70% 58% 40% 10%17% 20% 21%
  • 12. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters Top-quartile companies are winning the war for talent, measured through employee Net Promoter® scores (eNPS), a widely used indicator of employee loyalty and enthusiasm. Top performers’ eNPS is 23, compared with a low of -56 for others in the survey. Taking the measure of your innovation performance Bain & Company - 2013 Higher employee loyalty 23% -56% -80% -60% -40% -20% 0% 20% 40% High performer Other Employee loyalty (NPS score)
  • 14. MEANINGFUL BRANDS HAVE OUTPERFORMED THE STOCK MARKET BY 206% OVER THE LAST 10 YEARS MEANINGFUL BRANDS INDEX
  • 15. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters FIRMS OF ENDEARMENT; COMPANIES THAT PRACTICE “CONSCIOUS CAPITALISM” PERFORM 10X BETTER, TONY SCHWARTZ THE 18 PUBLICLY TRADED FIRMS OF ENDEARMENT OUTPERFORMED THE S&P 500 INDEX BY A FACTOR OF 10.5 OVER THE YEARS 1996-2011.
  • 16. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters “THE BRANDS THAT HAVE NOT YET CAUGHT ONTO THIS, AND ARE NOT THINKING ABOUT HOW THEY WILL EMBED ENVIRONMENTAL AND SOCIAL SUSTAINABILITY WITHIN THEIR BUSINESS MODEL WILL NOT BE AROUND IN THE NEXT 50 YEARS” - KEITH WEED CHIEF MARKETING OFFICER OF UNILEVER
  • 17. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters EY - THE BUSINESS CASE FOR PURPOSE REPORT IN THE LAST THREE YEARS: 58% OF COMPANIES THAT PRIORITISED PURPOSE ACHIEVED 10% OR MORE REVENUE GROWTH OVER 3 YEARS 10 % $
  • 18. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters 85% PURPOSE AT WORK, 2016 GLOBAL REPORT COMMISSIONED BY LINKEDIN AND IMPERATIVE; EY - THE BUSINESS CASE FOR PURPOSE REPORT IN THE LAST THREE YEARS: 42% OF NON-PURPOSE LED COMPANIES SHOWED A DROP IN REVENUE VS. 85% OF PURPOSE-LED COMPANIES SHOWED POSITIVE GROWTH
  • 19. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters IN THE LAST THREE YEARS: 58% OF COMPANIES WITH A CLEARLY ARTICULATED AND UNDERSTOOD PURPOSE EXPERIENCED GROWTH OF +10% VS. ONLY 42% OF COMPANIES NOT PRIORITIZING PURPOSE PURPOSE AT WORK, 2016 GLOBAL REPORT COMMISSIONED BY LINKEDIN AND IMPERATIVE; EY - THE BUSINESS CASE FOR PURPOSE REPORT
  • 20. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters ‘TODAY WE HAVE A VISION TO MAKE SUSTAINABLE LIVING COMMONPLACE. THIS IS NOT BECAUSE IT IS A “NICE TO HAVE”; OUR SUSTAINABLE LIVING BRANDS – SUCH AS LIFEBUOY, BEN & JERRY’S AND DOVE – ARE GROWING AT TWICE THE RATE OF THE REST OF OUR PORTFOLIO AND DELIVERING MORE THAN HALF OUR GROWTH. THIS IS AN ECONOMIC DECISION AND IT IS DRIVING OUR BUSINESS.’ - KEITH WEED CHIEF MARKETING OFFICER OF UNILEVER
  • 21. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters FORTUNE 100 BEST COMPANIES TO WORK FOR® LIST HAS OUTPERFORMED THE STOCK MARKET BY NEARLY 3X FROM 1998–2016 -GREAT PLACE TO WORK REPORT
  • 22. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters JOHN KOTTER AND JAMES HESKETT’S ANALYSIS OF FIRMS WITH A STAKEHOLDER CULTURE SHOWED A DIFFERENCE BETWEEN A 900% AND A 75% APPRECIATION IN EQUITY VALUE AND A DIFFERENCE OF 756% VERSUS 1% FOR NET INCOME GROWTH JOHN KOTTER AND JAMES HESKETT, CORPORATE CULTURE AND PERFORMANCE, 1992
  • 23. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters ETHISPHERE’S WORLD’S MOST ETHICAL COMPANIES HAVE COLLECTIVELY OUTPERFORMED THE S&P 500 EVERY YEAR SINCE THE INCEPTION OF THE PROGRAM IN 2007, BY AN AVERAGE OF 7.3% ANNUALLY - ETHISPHERE
  • 24. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters THE GALLUP GREAT WORKPLACE AWARD COMPANIES EXPERIENCED 115% GROWTH IN EPS, WHILE THEIR COMPETITORS EXPERIENCED 27% GROWTH OVER THE SAME TIME PERIOD GALLUP REPORT - STATE OF THE AMERICAN WORKPLACE 115% GROWTH IN EARNINGS PER SHARE
  • 25. “WE LOOK AT THE SUSTAINABLE DEVELOPMENT GOALS (SDGS) AND SAY, ‘THERE IS A MARKET HERE’. YOU CAN ACTUALLY QUANTIFY THE MARKET POTENTIAL OF FOR- PROFIT BUSINESS TO MEET THE NEEDS OF THE SDGS. GETTING BUSINESS TO UNDERSTAND THAT THIS IS ABOUT NEW MARKETS, NEW BUSINESS OPPORTUNITIES, AND NEW BUSINESS MODELS — INSTEAD OF CHARITY OR THE MANDATE OF THE DEVELOPMENT AGENCIES, THE GOVERNMENT, AND THE NGOS IS A FUNDAMENTAL SHIFT THAT CAN BE VERY EMPOWERING.” - MARK KRAMER - CO-AUTHOR CREATING SHARED VALUE
  • 27. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters 46 PERCENT SAID THEIR COMPANY HAS A STRONG SENSE OF PURPOSE 44 PERCENT SAID THEIR COMPANY IS TRYING TO DEVELOP ONE ONLY A MINORITY SAID THEIR COMPANY CURRENTLY RUNS IN A PURPOSE-DRIVEN WAY 46% 44% EY - THE BUSINESS CASE FOR PURPOSE REPORT
  • 28. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters 90 PERCENT OF EXECUTIVES SURVEYED SAID THEIR COMPANY UNDERSTANDS THE IMPORTANCE OF SUCH PURPOSE, BUT ONLY 46 PERCENT SAID IT INFORMS THEIR STRATEGIC AND OPERATIONAL DECISION-MAKING EY - THE BUSINESS CASE FOR PURPOSE REPORT
  • 29. © People With Purpose 2017 PEOPLE WITH PURPOSE Why Purpose Matters MOST EXECUTIVES BELIEVE PURPOSE MATTERS EY - THE BUSINESS CASE FOR PURPOSE REPORT OF EXECUTIVES SURVEYED SAID A STRONG SENSE OF COLLECTIVE PURPOSE DRIVES EMPLOYEE SATISFACTION89% 84% 80% SAID IT CAN AFFECT AN ORGANIZATION’S ABILITY TO TRANSFORM, AND SAID IT HELPS INCREASE CUSTOMER LOYALTY
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  • 31. Purpose with the Power to Transform Your Organization