ry-fit-for-purpose-2015-index

An index of
the 100 brands
best placed to put
purpose into practice
FIT FOR
PURPOSE
2015:

Introduction
1 What’s the point of purpose?
2 Purposeful brands at Radley Yeldar
5 What makes a brand Fit for Purpose?
The Top 100
8 Are you Fit for Purpose?
The Top 10
13 Who made the Top 10?
The insights
35 Our discoveries
Sector overview
42 Sector by sector
43 Basic Materials
44 Conglomerates
45 Consumer Goods
46 Financial Services
47 Healthcare
48 Industrial Goods
49 Services
50 Technology
51 Utilities
52 Contributors

RY FIT FOR PURPOSE INDEX | INTRODUCTION | 1
WHAT’S THE POINT
OF PURPOSE?
The role of the corporate brand
has radically changed
Three interdependent forces have shaped this shift over
the past decade:
The first is the transformation brought about by
technology. We know the facts. There are more mobile
contracts than toothbrushes. We’re all online, always.
Facebook’s population is bigger than China’s. And
crucially, with a proliferation of content, getting noticed
is much tougher.
The second is the emergence of a more savvy type of
consumer – consumers that understand the relationship
between product brand and parent brand; that are just
as interested in why you exist as in what you can offer.
They (or, maybe, ‘we’) can see you from all angles,
because they aren’t simply customers but investors or
employees too. And, with views to share and platforms
to share them on, they’re holding organisations to their
word more vocally than before – demanding new levels
of authenticity and transparency.
The third is sustainability’s transition from fringe to
mainstream. Showing you care about more than profit
is part of the new contract between corporation and
society. And the organisations that are using science-
driven innovation to drive reputation when it comes to
responsible business are the ones that will be more
resilient in the long term.
For businesses, purpose is part of the
response to these shifts
Over the last decade, businesses have embraced
purpose as a way to add meaning and texture to their
brands. Done well, purpose helps cut through in a
noisy landscape. Done brilliantly, it allows individuals
to connect emotionally with an organisation.
But having a purpose isn’t enough.
Purpose must be put into practice
to make a difference
Purposeful brands go beyond a well-crafted set of words;
it’s not enough to have a polished statement of purpose
without any evidence that you’re living up to the promise
you’ve made.
They invite people to be part of their purpose, so their
customers, investors and employees can help turn an
ambition into action.
Ultimately, they create business success. By fulfilling
their purpose they benefit society. And they prove that
they’re worthy of our trust, our time and our buy-in.

2 | RY FIT FOR PURPOSE INDEX | INTRODUCTION
PURPOSEFUL BRANDS AT
RADLEY YELDAR
We believe that corporate brands
with a strong stated purpose have
a big opportunity
Purpose offers focus: helping brands to realise the
potential benefit they create for people and society.
Purpose offers direction: helping to motivate employees
and show customers what they’re buying-in to. And,
when used to guide strategic decision-making, purpose
drives performance: helping organisations to make
choices that build trust over time and safeguard resilience
into the future.
We believe the most compelling purpose statements
put a social or human need at their heart – and the best
organisations are using purpose to drive communications,
inform decision-making and engage their stakeholders.
This research seeks to identify and celebrate best
practice in this space.
So, are the world’s biggest brands
Fit for Purpose?
That’s what we set out to discover as we embarked
on this research.
We’ve built a one-of-a-kind assessment that offers
corporate brands a clear snapshot of how the world
might see them. Drawing on insights from RY’s brand,
sustainability, digital and engagement teams, our criteria
assess the quality of purpose statements, and the extent
to which purpose is embedded into and connected
across their external communications, behaviour
and performance.
Read on to discover what we did, our methodology
and criteria, and what we found.

FIT FOR PURPOSE:
OUR EXPLORATION
We assessed external
communications from the
top 170 companies of the
Financial Times 500 combined
with the FTSE Eurofirst 100.
We used 27 criteria to help
us understand:
How many companies have
a purpose statement?
Which companies actively state they are here to provide
a wider social value – beyond making money – to
individuals, society or the world at large?
How many companies are committing
to act on their statement?
Who is claiming to have made purpose intrinsic to their
business, incorporating it into their people’s everyday
work, and measuring the outcomes of their activities?
So our assessment evaluates not only the quality of
each company’s statement of purpose, but also the
extent to which this purpose is embedded into their
everyday endeavours – from the way each company
communicates to the way decisions are made in the
business and how purpose exists in their culture.
We don’t claim that any of the companies in our index
or Top 10 are spotless. However, we believe that we’ve
identified the organisations with the greatest potential to
create benefits for their business and for society at large,
based on what they’re telling the outside world.

OUR CRITERIA
AND METHODOLOGY
Who we reviewed
We looked at the top 100 companies of the FT
500 combined with the Eurofirst 100. We reviewed
170 companies in total between April and May 2015.
However, only companies with a public, clearly stated
purpose or social intent were considered for a full review;
this gave us a long-list of 127 companies, of which 100
are celebrated in this report.
We clustered our sample using Standard and Poor’s
Global Industry Classification Standard.
All averages in the report are based on the full list of
127 companies.
What we looked at
We want to be clear about what we’ve included in our
research – which, at this stage, looks only at publicly
available external communications produced by
corporate brands. Key sources included:
–– Company websites (including careers sites,
investor relations sites)
–– Company reports (annual, integrated and
sustainability reports)
–– Corporate campaigns (i.e., campaign aimed
at stakeholders not just consumers, issued by
a corporate brand not a product brand)
–– Corporate social media (Twitter, Facebook,
LinkedIn, YouTube)
To this end, our Communication, Performance and
Behaviour scores are limited in scope by the information
each organisation chooses to publish. However, the
criteria represent global best practice in terms of
transparency and corporate disclosure standards. As
the Index evolves over time we hope to include specific
metrics on consumer perception and social reputation.
How we worked out the scores
Each company in the index received an overall
percentage score. This was made up of four equal
scores for Purpose & Story, Communications, Behaviour
and Performance (23.5%), with the remaining marks
composed of a Connectivity score (6%). Percentage
scores were used to define entry into our Top 100,
and to identify the Top 10.
A secondary systems of ranking helped us to define
the classification used in the Top 100. We plotted the
quality of the stated Purpose & Story against the other
three main scores – Communications, Behaviour and
Performance. This was designed to identify four types
of organisation:
–– The Super-fit are those with a strong stated
purpose, and who reference purpose in relation
to Communications, Behaviour and Performance
narratives
–– The Heavyweights reference purpose in relation
to Communications, Behaviour and Performance
narratives, but do not have such a clearly articulated
purposes in the first instance
–– The Middleweights have a strong stated purpose,
but lag behind somewhat when it comes to
referencing purpose in relation to Communications,
Behaviour and Performance narratives
–– And the Lightweights lag behind the rest of the
Top 100 on both the dimensions above.

WHAT MAKES A BRAND
FIT FOR PURPOSE?
The four main criteria that underpin our
Fit for Purpose methodology:
COMMUNICATION
Building a brand movement
Are companies using their purpose to engage and activate
their audiences?
Using communication channels effectively can help you to
build movement and momentum around your stated purpose –
inspiring other stakeholders to get involved and play their part.
We looked at social media, dotcoms, campaigns, annual and
sustainability reports. Our criteria looked for evidence that
companies are using their communication channels to inform
and encourage dialogue, create affinity and ultimately build
a movement around their stated purpose.
Specifically we looked at:
–– The extent to which purpose is clearly embedded into key
external communications channels
–– Whether the brand has run a purpose-led campaign
PURPOSE & STORY
All mouth and no trousers
Are companies articulating their reason for being in a clear
and compelling way?
A great statement is clear, memorable, and inspires action.
It gives people something to focus on, and prevents the
proliferation of disparate messages that aren’t delivering
on one meaning.
Some of the companies we assessed didn’t have a well-crafted
statement but were communicating and acting with a strong
sense of social purpose. We didn’t want to discount these
companies from our ranking, so while they were not able to
reach full marks for this area, we did go on to score them
across all others. If there was no sign of social purpose,
then the company was discounted from the ranking.
–– Whether your purpose clearly addresses a world need
–– How you describe that purpose in the context of your operations
–– What promise you make with the world
–– How you differentiate yourself from others
–– Whether the stated purpose is clear, inspiring and
forward looking

BEHAVIOUR
Inspiring action
Are companies embedding their purpose into their culture?
In a purposeful company, people will have a shared
understanding of why their employer exists and what
they can do to contribute to the company’s success.
We investigated, how leaders champion their company’s
purpose, how purpose is used to attract talent and whether
employees are given the opportunity to engage in activities
related to the company’s purpose. Also we observed what type
of governance structures businesses are putting in place to
deliver on their purpose, and whether employees are actively
engaged with the company’s purpose.
–– The extent to which purpose is referenced in externally available
leadership statements
–– Whether the brand offers any evidence that employees can do
purposeful work
–– Whether there are any purpose-led partnerships in place
–– Whether the brand offers any disclosure on integrated
governance practices that link back to purpose
–– Whether purpose links to values or talent attraction
–– Whether the brand uses case studies to show purpose
in practice
PERFORMANCE
Measurement is everything
Are companies letting purpose drive their performance?
Communication is important, but your purpose needs to run
deeper than that. If you are really committed, it should be
reflected in the way that you organise your business, set goals
and strategies, and monitor progress.
We assessed whether companies are embedding purpose
into their business model, business strategy and sustainability
strategy. Not only that, we wanted to know whether companies
are setting specific targets aligned to their purpose or linking
the impact generated by their purpose to specific KPIs.
–– Whether purpose is connected to business model and
business strategy
–– Whether purpose is connected to targets or KPIs
–– Whether purpose is connected to the brand’s approach
to sustainability

RY FIT FOR PURPOSE INDEX | THE TOP 100 | 7
THE INDEX:
WHO MADE
THE TOP 100?

8 | RY FIT FOR PURPOSE INDEX | THE TOP 100
36COMPANIES
THE
SUPER-FIT
These companies get it.
Demonstrating clearly that
they want to do more for
people and society at large,
they have started putting
actions into place to achieve
this. Whether their corporate
campaigns are moving
millions, or their ambitious
long-term targets demonstrate
their commitment, they’re on
the move and Fit for Purpose.
ARE YOU
FIT FOR PURPOSE?
We recognise it’s not just about better or worse scores in a ranking, but about
how fit companies are to deliver on their purpose, when executed correctly.
With this in mind, we’ve grouped the Top 100 brands from our sample according
to their stated purpose and the practical steps they claim to be taking to convert
their purpose into impact. We’ve defined four main groups: the Super-Fit, the
Heavyweights, the Middleweights, and the Lightweights.
28COMPANIES
THE
HEAVYWEIGHTS
In this group, we see those
companies that are doing
a lot of the hard work, from
integrating their purpose into
their sustainability strategy to
connecting employees with
their purpose. However, the
way they tell the world about
what they’re up to leaves room
for improvement.
20COMPANIES
THE
LIGHTWEIGHTS
Finally, the Lightweights.
These are the companies
that have an implicit sense
of a social intent or purpose,
but it isn’t well articulated.
Similarly, and perhaps as a
result of this, there’s room for
improvement in putting their
purpose into action.
16COMPANIES
THE
MIDDLEWEIGHTS
In contrast to the
Heavyweights, the
Middleweights have figured
out why they exist and tell
their story in an inspiring and
compelling way. However, they
still have some way to go to
put the necessary actions in
place that will allow them to
live and breathe their purpose
on a daily basis and become
Fit for Purpose.
Whatyoudo:Actionsinplace
What you say: Stated purpose

THE
SUPER-FIT
1 Unilever 89.3%
2 Philips 85.5%
3 Lloyds Banking Group 82.9%
4 Pearson 82.3%
5 Nestlé 80.5%
6 GlaxoSmithKline 80.2%
7 PepsiCo 80.1%
8 Marks & Spencer 78.8%
9 Kingfisher 77.7%
10 Rolls-Royce 77.4%
11 AstraZeneca 75.1%
12 BASF 73.9%
13 Bayer 73.8%
14 Danone 73.7%
15 Engie 72.9%
16 Novartis 72.8%
17 Airbus Group 71.9%
18 Procter & Gamble 71.6%
19 Vodafone 71.3%
20 Sky 71.2%
21 Coca-Cola 70.7%
22 SAP 70.4%
23 GE 70.3%
24 ABInBev 70.2%
25 L’Oréal 70.1%
26 Renault 68.1%
27 Total 67.1%
28 Toyota 66.2%
29 Microsoft 66.1%
30 AkzoNobel 65.3%
31 Cisco Systems 64.0%
32 Sanofi 63.3%
33 Google 63.2%
34 Volkswagen Group 62.8%
35 Verizon 62.6%
36 Wells Fargo 61.6%
SKY
Making life better by entertaining
and connecting people
Partnerships are a key element in bringing
Sky’s purpose to life. Sky Rainforest Rescue
in partnership with WWF is particularly
inspiring. Aiming to help save three million
hectares of forest from deforestation, Sky
has created a series of programmes that
connect their viewers to stories from rainforest
communities in Acre, North West Brazil.
GE
To invent the next industrial era,
to build, move, power and cure
the world
Corporate campaigns are central to GE’s
purpose. GE’s campaigns are fairly unique
in the corporate sphere, with an aspirational
purpose to ‘invent the next industrial era’
reflected by the quality of their campaigns.
They are visually appealing and set out in
a compelling way how GE’s purpose works
across the wide range of sectors in which
it operates.
GOOGLE
To organise the world’s
information and make it
universally accessible and useful
Google’s products are true to its purpose.
When disaster strikes, people turn to the
internet for information. Google help ensure
the right information is there in these times
of need by building tools to collect and share
emergency information, and by supporting
first responders in using technology to help
improve and save lives.

THE
HEAVYWEIGHTS
37 Siemens 75.9%
38 Novo Nordisk 75.0%
39 Johnson & Johnson 74.0%
40 Heineken 73.6%
41 BP 72.6%
42 Kering 72.4%
43 BT Group 71.8%
44 Saint-Gobain 71.1%
45 Lafarge 70.9%
46 LVMH 67.8%
47 Bank of America 67.6%
48 Inditex 67.5%
49 Tesco 67.2%
50 ING 66.8%
51 Anglo American 66.6%
52 Barclays 64.5%
53 Aviva 63.8%
54 Banco Santander 63.4%
55 Reckitt Benckiser Group 61.7%
56 BMW 60.3%
57 Bristol Myers Squibb 60.2%
58 Wal-Mart Stores 60.1%
59 HSBC 59.8%
60 Royal Dutch Shell 59.4%
61 SAB Miller 59.0%
62 Pfizer 58.7%
63 British American Tobacco 58.6%
64 Orange 57.8%
SIEMENS
We make real what matters, by
setting the benchmark in the way
we electrify, automate and digitize
the world around us
Siemens’ purpose is the ‘red thread’ in their
integrated report. Believing fundamentally
that purpose matters to all their stakeholders,
Siemens produce one of the best Integrated
reports in terms of its implementation.
Their purpose features on its initial pages
and acts as a core theme throughout the
report. It forms part of a detailed discussion
around the business strategy and wider
value creation.
KERING
To allow our customers to express,
fulfil and enjoy themselves
through our products
Aligning their recruitment strategy with their
purpose, Kering say their aim is to empower
their employees to fulfil their potential
and creativity, by fostering their skills and
performance in the most imaginative and
sustainable manner.
BT GROUP
To use the power of
communication to make
a better world
Purpose builds BT’s sustainability report
credibility. BT have built their sustainability
report around a brand purpose of ‘using the
power of communications to make a better
world’. This approach provides two main
benefits. Firstly, by using their purpose to
anchor their sustainability communications
they build a coherent and consistent story
that is told and reinforced at all touchpoints.
Secondly, and more importantly, it gives the
message real credibility and readers a reason
to trust BT, which in an age of transparency
is more valuable than ever.

THE
MIDDLEWEIGHTS
65 Qualcomm 64.4%
66 Shire 60.8%
67 Vinci 58.5%
68 CVS Health 57.7%
69 IBM 56.4%
70 Intel 56.3%
71 Facebook 56.1%
72 AXA 55.3%
73 Merck & Co. 55.2%
74 Roche 55.1%
75 McDonald’s 54.9%
76 Apple 52.9%
77 AbbVie 49.0%
78 Union Pacific 48.3%
79 UnitedHealth Group 47.1%
80 Samsung Electronics 46.9%
FACEBOOK
To give people the power to
share and make the world
more open and connected
Purpose grows with leadership support.
CEO Mark Zuckerburg is a huge advocate
of purpose and uses many different forums
and channels to discuss it. He hosted a
Q&A on his Facebook page discussing their
purpose in detail which guides the company’s
philanthropic efforts, aiming to help people
in less developed countries get online,
through internet.org. This gains the attention
of specialist audiences such as the media
and opinion-formers who grow and share
the story.
APPLE
To leave the world better
than we found it
Apple’s committed to measuring their
purpose. The sustainability section of their
corporate website clearly displays a wide
range of impressive KPIs, such as the fact
that 100% of their data centres run on
renewable energy. In addition, they provide
a range of annual statistics and a breakdown
of the greenhouse gas emissions for the full
life-cycle of their products: from production
to use, to recycling. Taken together, these
measures go a long way in demonstrating
Apple’s commitment to leaving the world
better than they found it.

THE
LIGHTWEIGHTS
81 National Grid 55.7%
82 WPP 54.8%
83 Petrobras 54.1%
84 Chevron 52.0%
85 JPMorgan Chase & Co. 51.9%
86 Industrial & Commercial
Bank of China
51.6%
87 Enel 51.5%
88 Relx Group 51.1%
89 Telefonica 50.6%
90 Citigroup 49.9%
91 Royal Bank of Canada 48.9%
92 Toronto-Dominion Bank 48.1%
93 Centrica 48.0%
94 Diageo 47.9%
95 Generali 47.8%
96 BHP Billiton 47.4%
97 Commonwealth Bank
of Australia
46.2%
98 Rio Tinto 45.0%
99 Carrefour 44.4%
100 The Walt Disney Company 44.3%
NATIONAL GRID
To be a recognised leader in
the development and operation
of safe, reliable and sustainable
infrastructure
Aligning their purpose with their sustainability
story, National Grid has crafted an inspiring
promise, ‘making connections’. It describes
their role in the transportation and use of
energy and exploring the changing production
and use of energy. They aim to ensure the
safety, security and sustainability of our
energy grid now and in the future through
preserving the environment, inspiring the
next generation of engineers and designing
the safest, most reliable network.
JPMORGAN CHASE & CO.
To be a first class business,
in a first class way
JPMorgan Chase & Co. produced an inspiring
film that captures what it is to be first class.
Describing their business as more than
skyscrapers and investments; more than
cash and credit cards; more than numbers
and loans. The film explains how they help
families buy their first home and parents save
for their children’s education. They also share
a number of case studies demonstrating what
this means in practice. They tell the story of a
small, recycled toy business that is expanding
into markets overseas and a story about a
vet setting up his own practice. This explains
their role in society and how they create
societal value alongside financial value.
RELX GROUP
To be a world-leading provider
of information solutions that
improve outcomes for our
professional customers and
benefit society
RELX Group’s case studies bring to life their
purposes. When describing what they do as
a business, they say that they help scientists
make new discoveries, lawyers win cases,
doctors save lives and executives forge
commercial relationships with their clients.
To prove this, they have a section on their
website dedicated to the success stories of
their clients which are substantiated by KPIs
and quotes from their customers.

THE LEADERS:
WHO MADE
THE TOP 10?

WHAT WE LOVE
Their statement, ‘Making sustainable living commonplace’, is
strong and inspirational. It leaves no doubt about the impact
Unilever want to make. The way the business lives up to this
aspiration means Unilever perform well across our criteria.
Their ability to communicate in a way that embodies their purpose
and builds engagement is peerless, earning the only maximum
score in our Top 10. The evidence? Think Project Sunlight or
Unilever’s Bright Future with its 240 million supporters around
the world.
Their commitment to make an impact is so strong that they not
only clearly state their purpose in their business strategy and
business model; they also revised the entire portfolio and are
working hard to ensure each individual product brand aligns to the
vision set out in the Unilever Sustainable Living Plan. The fact that
their purposeful consumer brands have contributed to half of the
business’s overall growth, growing twice as fast as other brands
in the portfolio, is proof of this successful move.
The structure and operating model of the business is designed
to drive purpose-led decisions. For example, the marketing and
communications functions also lead Unilever’s sustainability
agenda and the Unilever brand.
#1
UNILEVER
Making sustainable living commonplace
WE CAN NO LONGER
PRETEND THAT BUSINESS
CAN IMMUNISE ITSELF
FROM THE RISING TIDE
OF ENVIRONMENTAL
CHALLENGES. WE SEE
THIS AS THE BEST LONG-
TERM WAY FOR US TO
GROW AND BRING BENEFITS
TO ALL OUR STAKEHOLDERS.
TO SUCCEED IN THIS GOAL,
WE NEED TO CHANGE THE
WAY WE DO BUSINESS AND
TO SCALE UP THE IMPACT
ON THE ISSUES THAT
MATTER MOST.
Paul Polman
Chief Executive Officer
THE NUMBERS
OVERALL
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
89.3%
82.6%
100%
86.7%
90.5%

Case study
If taking a hot shower is more about waking
up than washing, it can be easy to forget
that one in nine people still lack a steady
supply of clean water. That’s over 700 million
people worldwide.
Unilever’s Comfort One Rinse is formulated
to dramatically reduce the amount of foam
left in fabrics after washing, so requires just
one bucket of water to fully clean items.
This means a family can save up to 30 litres
of water on every hand-washed load. It
launched in India and Cambodia in 2012,
and has now reached Thailand, Vietnam,
Indonesia and the Philippines.

WHAT WE LOVE
Philips’s external communications suggest that ‘Improving people’s
lives’ is an authentic mantra for the whole organisation. From the
brand film showing the positive difference Philips has been making
since 1891 to the company’s business model, their purpose plays
a central role.
Within the narrative Philips use to attract talent, there is a real
sense of this purpose, which is built around a tangible opportunity
for recruits to make a mark on the world.
Philips’s transition to circular economic principles, with a
passion for improving people’s lives, goes hand in hand with
their vision of ‘making the world healthier and more sustainable’
through innovation.
They set an ambitious target to improve three billion lives a
year by 2025 and created a series of measures to get there.
The result? In 2014 they introduced seven new Healthcare green
products to improve patient outcomes and expand access to care;
green product sales reached 52% of total sales and 55% of the
company’s energy usage came from renewable sources.
#2
PHILIPS
Improving people’s lives through meaningful innovation
THE NUMBERS
OVERALL
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
85.5%
95.7%
73.3%
93.3%
76.2%
TWO YEARS AGO, WE
DECIDED TO EMBED
CIRCULAR-ECONOMY
THINKING IN OUR STRATEGIC
VISION AND MISSION,
BOTH AS A COMPETITIVE
NECESSITY AND WITH
THE CONVICTION THAT
COMPANIES SOLVING THE
PROBLEM OF RESOURCE
CONSTRAINTS WILL HAVE
AN ADVANTAGE. WE BELIEVE
THAT CUSTOMERS WILL
INCREASINGLY CONSIDER
NATURAL RESOURCES IN
THEIR BUYING DECISIONS
AND WILL GIVE PREFERENCE
TO COMPANIES THAT SHOW
RESPONSIBLE BEHAVIOUR
– SOMETHING WE ARE
ALREADY SEEING.
Franz van Houten

Case study
Life can’t be planned and when babies are
born prematurely, there’s nothing more
important than ensuring they have the right
space to develop and grow stronger.
Partnering with Mangiagalli hospital,
Philips has developed a unique environment
designed to boost new babies’ immune
systems and protect them from light and
noise, transforming a place of struggle
between life and death into a place that
enhances mother and baby’s natural rhythms.

WHAT WE LOVE
Lloyds Banking Group’s purpose is rooted in the company’s
heritage, driving a desire to enhance Britain’s economic and
social wellbeing. And it’s not merely a statement: when it comes
to putting their purpose into action, Lloyds Banking Group really
is leading the way.
An interactive map of the UK that showcases how – and
precisely where – Lloyds Banking Group has helped Britain
prosper. It’s a rich archive showcasing their commitment,
contributing to cementing trust in a sector overcoming
reputational issues.
The Helping Britain Prosper Plan spells out their approach to
tackling big issues affecting British society today, setting clear long-
term targets. The Plan is updated yearly with indications of Lloyds
Banking Group’s achievements and what it will take to reach the
goals they’ve set for the future. For example, one of their metrics
is the ‘increased amount of new funding support provided to UK
manufacturing businesses per year’. They have achieved their
2014 target for this, setting a 2015 target of £1 billion alongside
a 2017 target of £4 billion.
There is a strong drive to enable employees to engage in
purpose-related activities. The group’s Day to Make a Difference
programme enables people to spend at least one day per year
volunteering for a charity or community project of their choice.
Since 2010 over 82,000 colleagues have taken part in it.
#3
LLOYDS BANKING
GROUP
Helping Britain prosper
THE NUMBERS
OVERALL
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
82.9%
82.6%
93.3%
80.0%
76.2%
THE HELPING BRITAIN
PROSPER PLAN MAKES
BEST SENSE FOR OUR
GROUP BECAUSE OF OUR
SCALE AND PRESENCE IN
COMMUNITIES ACROSS
BRITAIN. AS A RESULT, WE
BELIEVE NO OTHER BANK
IS BETTER PLACED THAN
LLOYDS BANKING GROUP
TO HELP BRITAIN PROSPER.
WE ARE PROUD OF WHAT
WE HAVE ACHIEVED SO
FAR BUT WE KNOW THAT
THERE IS A LOT MORE HARD
WORK AHEAD.
António Horta-Osório
Group Chief Executive

Case study
When using a bank, 66% of people with
dementia need some assistance.
Working with the Alzheimer’s Society, Lloyds
Banking Group have created the Dementia-
Friendly Financial Services Charter, a new
financial charter addressing an ageing
population, of which an increase of dementia
sufferers is an inevitable side-effect.

WHAT WE LOVE
As the world’s largest education company, Pearson’s purpose
is absolutely ownable and unique to them. Their brand promise
‘Always learning’ complements it well.
‘Helping people make more of their lives through learning’ is
present everywhere when it comes to their dotcom and social
media channels, acting like a red thread that brings the meaning
behind their purpose to life, allowing people to engage with it.
The company has publicly pledged to report on the effectiveness
of their entire range of products from 2018, but they are not
waiting until then to get started. In fact, through their Efficacy
website, they’ve already started to offer a view of their own
performance, letting people judge for themselves whether Pearson
helped someone make progress in their life. Moreover, they are
inviting the global community to join and collaborate to change
the way education’s impact is measured.
#4
PEARSON
To help people make more of their lives through learning
THE NUMBERS
OVERALL
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
82.3%
95.7%
93.3%
60.0%
81.0%
FOR EDUCATION TO REALLY
WORK IT NEEDS TO NOT
ONLY PROVIDE ACCESS,
BUT ENSURE PROGRESS...
BY STANDING AT THE
INTERSECTION OF NEW
TECHNOLOGY AND GOOD
TEACHING PRACTICES, WE
CAN MAKE LEARNING MORE
ACCESSIBLE, RELEVANT
AND MORE RELEVANT FOR
MORE PEOPLE AROUND
THE WORLD.
John Fallon

Case study
Most of us take for granted being able to
fill out a form at the hospital, vote in an
election, or say hello to a loved one with a text
message. But one in every ten of us around
the world can’t read, making these simple
things a big challenge for millions of people.
By partnering and providing organisations,
communities and families the tools and
resources to combat illiteracy, Pearson’s
Project Literacy has set the goal that by
2030 every child will grow up literate.

WHAT WE LOVE
Nestlé’s purpose – ‘Good food, good life’ – is central to the business
and the sustainability strategy and we love how they spell out
their deeper sense of responsibility: ‘Being a global leader brings
not only a duty to operate responsibly, but also an opportunity to
create long-term positive value for society.’
They’re doing particularly good work when it comes to our
performance criteria. To support the long-term goal of ‘Creating
Shared Value’, Nestlé crafted 38 commitments that ask for the
direct contribution of a wide range of stakeholders. Through their
online dashboard the company lets anyone explore how they’re
doing with their aim to meet all their goals by 2020.
The ‘partnership and collective action’ section of the Creating
Shared Value report is well worth a read as it inspires the
implementation of best practice. It demonstrates clearly how
the company engages in collective activities with partners and
like-minded stakeholders at a global and a local level to achieve
sustainable results.
#5
NESTLÉ
Enhancing people’s lives by offering tastier, healthier food and
beverage choices at all stages of life and at all times of the day
THE NUMBERS
OVERALL
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
80.5%
87.0%
80.0%
93.3%
61.9%
CREATING SHARED VALUE.
THESE THREE WORDS
ARE ACTUALLY COVERING
THE FUNDAMENTAL WAY
WE WANT TO BEHAVE AS
A COMPANY AND ALSO
AS PEOPLE. THERE’S
A FUNDAMENTAL WAY
WE WANT TO GO ABOUT
OUR ACTIVITIES AND
IT IS REPRESENTED
BY THE CONVICTION
THAT A COMPANY TO
BE MEANINGFUL AND
SUCCESSFUL OVER TIME
HAS TO INTERSECT WITH
SOCIETY IN A VERY POSITIVE
AND CONSTRUCTIVE WAY.
Paul Bulcke

Case study
Today, agricultural work is less appealing for
younger generations in many regions of the
world, affecting the reliability and quality of
food supply.
In Venezuela, Nestlé is helping to make cocoa
production a livelihood of choice, one that
leads to higher incomes and improved social
conditions through its Nestlé Cocoa Plan. Since
2008 they’ve provided technical assistance and
training in good agricultural practices, almost
duplicating the production of cocoa in the area.

WHAT WE LOVE
GSK have an ownable, concise and inspiring purpose that clearly
differentiates them from other companies in the sector.
Their purpose is central to the brand story and is used across
social media, dotcom and reports to build a compelling narrative
and engage with all their audiences.
GSK communications are supported with quality case studies,
demonstrating how they translate purpose into real impact. Their
work is diverse – from investing in an underfunded disease that
affects only a small number of people globally or joining forces
with the WHO to contribute to the fight against Ebola.
Embracing an open approach to partnering, they appreciate
that outside support can help addressing the health needs of
people around the world. In 2014, GSK invested US$1.8 million
in research on malaria vaccine, working with the Bill and Melinda
Gates Foundation.
#6
GSK
To help people do more, feel better, live longer
THE NUMBERS
OVERALL
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
80.2%
87.0%
93.3%
73.3%
61.9%
HOW WE OPERATE IS JUST
AS IMPORTANT TO US AS
DELIVERING FINANCIAL
PERFORMANCE. WE
BELIEVE OUR COMMITMENT
TO RESPONSIBLE
BUSINESS WILL BRING
LONG-TERM, SUSTAINABLE
BUSINESS BENEFIT.
Sir Andrew Witty

Case study
In the last 25 years, the global incidence rate
of polio has been cut by 99%, but the final
1% is proving very challenging. Polio is still
endemic in certain areas of Africa and the
Middle East.
GSK’s has delivered 396 million doses via
GPEI to the countries that most needed it,
being recognised by the WHO as vital to
the eradication effort.

WHAT WE LOVE
PepsiCo pioneered a new way of doing business when, seven
years ago, they articulated their promise, ‘Performance with
Purpose’, driven by its CEO’s strong advocacy and belief that
companies and society can thrive together. Since then, they’ve
integrated their commitment to human, environmental and talent
sustainability into all their operations to drive long-term growth.
This ability to translate purpose across different dimensions of
the business is something we haven’t often seen in many other
US‑based companies in our sample. Indeed, the impressive
scores for behaviour indicate that PepsiCo are best in class when
it comes to getting their people on board with their purpose too.
Setting targets to align performance with purpose, the company
has managed to leave its mark around the world, achieving great
things like water-flow savings of more than 14 billion litres per year
or packaging 750,000 meals’ worth of food in one day for those
in need, to name just a few.
Celebrating their 50th birthday this year, PepsiCo are
demonstrating their willingness to extend their legacy of success
for decades to come – by continuing to align what is good for
the business with what is good for society and the planet.
#7
PEPSICO
Delivering top-tier results in a way that sustains
and respects business, society and the planet
THE NUMBERS
OVERALL
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
80.1%
78.3%
86.7%
60.0%
90.5%
PEPSICO HAS SHOWN
HOW A CLEAR, FOCUSED
SUSTAINABILITY AGENDA
CAN BE INGRAINED INTO
A COMPANY’S DAILY
OPERATIONS, BE A POWERFUL
RALLYING CRY AMONG
EMPLOYEES, DRIVE STRONG
PERFORMANCE AND UNLOCK
SHAREHOLDER VALUE.
Indra K. Nooyi
Chairman and Chief Executive Officer

Case study
In partnership with the Asian Football
Development Project, PepsiCo’s programme
‘Kick for Hope’ is using football as a tool for
social development and touching the lives
of thousands of people in 18 countries.
Beyond the sports community, this is a
powerful initiative that encourages health
and wellbeing as well as provide new
pathways for young women and children
to achieve their dreams.

WHAT WE LOVE
In 2007, the team at M&S developed and delivered Plan A,
revolutionising how corporate brands approach sustainability
strategy. Moving sustainability from compliance exercise to
opportunity, the strategic long-term view demonstrates an intention
to create value for society at large while ensuring enduring
business results.
An aim to become the world’s most sustainable retailer has driven
the company since then and after five years they refreshed their
strategy as well as their targets until 2020, to accommodate a
changing world.
Today, they employ a collaborative approach to tackle their
challenges. Their Plan A Challenges website is an open platform
inviting businesses, academia or individuals to share ideas which
will solve the challenges M&S present for the benefit of everyone.
Unusually for brands in our sample, actions speak louder than
words here. Articulation of purpose scores less well than the
extent to which it’s embedded in communications, behaviour
and performance.
#8
MARKS& SPENCER
Enhancing lives. Every day.
THE NUMBERS
OVERALL
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
78.8%
65.2%
86.7%
86.7%
76.2%
I BELIEVE PLAN A SHOULD
REPRESENT MORE
THAN A BETTER WAY
OF WORKING; IT SHOULD
MATERIALLY IMPROVE
OUR CUSTOMERS’ AND
PARTNERS’ EXPERIENCE
OF M&S. IT SHOULD
INSPIRE AND ENGAGE
THE MILLIONS OF PEOPLE
WHO VISIT OUR SHOPS
WORLDWIDE EACH WEEK
BY HELPING US DELIVER
OUR CORE PURPOSE.
Marc Bolland

Case study
M&S are on a mission: by 2020, they want
to get 50% of their cotton from sustainable
sources. And they’re working with the WWF
in India to make this happen. Thanks to this
partnership, 18,500 farmers are already
earning 114% more, using 16% less water
and 18% fewer pesticides.

WHAT WE LOVE
Kingfisher’s purpose is simple yet effective and highly attributable
to them. The welcoming brand strapline ‘Better homes, better
lives’ enriches the meaning of their purpose, which is integrated
within their dotcom, annual and sustainability report.
Their ambition, to create positive change in their business and in
the world, is summarised in their ‘Becoming Net Positive’ idea and
substantiated by four focus areas with targets attached to them for
2020. The Net Positive Report also presents a commercial model
to implement plans across the group, integrating sustainability into
their core business in a locally relevant way – and contribute to
goals overall.
They offer strong purpose-related KPIs that highlight the impact
they made, such as £600 million estimated savings for customers
who have purchased energy efficient products and services
from Kingfisher or £375 million in sales of their most innovative
eco products.
#9
KINGFISHER
Helping people have better and
more sustainable homes
THE NUMBERS
OVERALL
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
77.7%
91.3%
86.7%
80.0%
52.4%
OUR LONG-TERM AMBITION
IS TO CREATE A POSITIVE
IMPACT IN THE WIDER
WORLD. WE WANT TO PLAY
OUR PART IN CREATING A
SOCIETY THAT IS BETTER
FOR ALL. WE CAN ONLY
DO THIS BY MAKING
SUSTAINABILITY PART OF
EVERY BUSINESS DECISION
WE TAKE.
Véronique Laury

Case study
Customers have saved 8.6TWh of energy
thanks to the energy-saving products they’ve
purchased from Kingfisher since 2011. This
equates to enough energy to power almost
900,000 houses for one year. The company
estimates that this is saving its customers
over £600 million a year based on the
average UK household energy bill.

#10
ROLLS-ROYCE
Deliver better power for a changing world
WHAT WE LOVED
Rounding out our Top 10 is Rolls-Royce. Their purpose is
aspirational, driving their story of who they are, what they do and
what they stand for. The company is particularly active on social
media channels where they constantly engage with people and
show they are delivering their ambitions.
The company offers a wide range of detailed case studies to show
how they live up to their promises. This, for example, could be
producing natural gas fuelled engines that reduce CO2 emissions
by 22%, enabling the world’s cleanest ferries to operate.
Their KPIs also clearly report how they are doing. For example,
in 2014 Rolls-Royce invested £4 million in energy efficiency
improvement projects and showed a 31% increase since 2013,
with £10.6 million invested in supporting communities.
Last but not least, we like the interactive dashboard of ‘higher
stretching targets’ Rolls-Royce use to articulate how they are
accelerating progress and invite people into the conversation.
We also look forward to seeing how performance and behaviour
scores increase over time.
THE NUMBERS
OVERALL
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
77.4%
87.0%
86.7%
73.3%
61.9%
OUR STRATEGY FOCUSES
ON CUSTOMER, INNOVATION
AND PROFITABLE GROWTH
TO ENSURE A SUSTAINABLE
BUSINESS. FOR ROLLS-ROYCE
THAT MEANS GROWING
OUR BUSINESS WHILST
ACHIEVING A POSITIVE
ECONOMIC, SOCIAL AND
ENVIRONMENTAL IMPACT.
Ian Davis
Chairman of the Board

Case study
There are over 3,100 vessels on the
Environmental Ship Index. Rolls-Royce have
some of the most environmentally friendly
ferries on the list.
From their LED lighting that reduce energy
consumption, to their gas-powered Bergen
engines that emit zero oxides of sulphur,
reduce oxides of nitrogen by 98% and cut
dioxide emissions by 23%, Rolls-Royce
delivers remarkable, and purposeful, ferries.

34 | RY FIT FOR PURPOSE INDEX | OUR DISCOVERIES
THE INSIGHTS:
WHAT DID
THE DETAIL
TELL US?

RY FIT FOR PURPOSE INDEX | OUR DISCOVERIES | 35
OUR
DISCOVERIES
We had two questions when
we began this research.
Firstly, how many companies
are embracing the idea of
purpose? Is purpose for
everyone, or for the few that
are more socially aware?
Secondly, and perhaps more
importantly, we wanted
to understand whether
purpose is shifting the way
organisations do business.
At first glance, we were surprised to find that over 75%
of our sample state they want to make a difference
in people’s lives and society’s wellbeing. This shows
that, across sectors, corporates are clearly realising the
value of having a social purpose. Corporations that act
in the interest of the greater good are here to stay, and
brands can no longer afford to ignore it.
However, we also found only the top scoring
companies tell us they are making purpose intrinsic
to their business model. This came as no surprise.
It’s easy to commit to a purpose, but it is much harder
to shape your business around it.
For some, this may be discouraging, but through
our analysis we found some fantastic examples of
organisations that are well on the way to making
purpose central to their business.

PURPOSE IS
AS PURPOSE DOES
Creating your purpose
statement is the first step.
Not entirely an easy one,
but perhaps the easiest of
a long-term transformation.
As shown on the chart below,
it’s integrating purpose into
everything in your organisation
when it starts getting trickier –
from Communications,
to Behaviours, to Performance.
The more in-depth you go,
the harder it gets.
Making purpose part of the
bigger picture
Talking about your purpose through your dotcom and your
campaigns is incredibly important. This is how you engage
your customers and consumers with your wider mission.
But wholesale transformation only begins when purpose
connects to your business model. How does your company’s
purpose deliver profitability and a competitive advantage?
How will you measure the non-financial value you create?
And is purpose playing a role in your people’s everyday work?
These are the tough questions to crack. Aspirational? Yes.
Idealistic? No. Our research shows that this is exactly what
our top rankers have managed to figure out. They’ve taken
the plunge and transformed their businesses – going on record
to explain how they will deliver long-term non-financial value.
The level of transformation these companies have gone through
is a cause for celebration, and in our view, these companies are
not only changing the way we do business in the 21st century,
they’re changing the world.
PURPOSE & STORY
COMMUNICATION
BEHAVIOUR
PERFORMANCE
64.3%
60.5%
55.4%
50.3%
The average scores of the sample across
our criteria

100
80
60
40
20
Unilever
Philips
LloydsBankingGroupPearson
Nestlé
GSK
PepsiCo
Marks&Spencer
KingfisherRolls-Royce
Siemens
AstraZeneca
Novo
Nordisk
Johnson
&
Johnson
BASF
SE
Bayer
Danone
Heineken NV
Engie (GDF Suez)
Novartis
BP
Kering
Airbus Group NV
BT Group
Procter & Gamble
Vodafone
Sky
Saint-Gobain
Lafarge
Coca-Cola
SAP SE
GE
AB InbevL’OréalRenaultLVMHBank of Am
erica
Inditex
Tesco
Total
ING
AngloAmerican
ToyotaMotorCorporation
Microsoft
AkzoNobel
Barclays
Qualcomm
CiscoSystems
Aviva
BancoSantander
Sanofi
Google
VolkswagenGroup
Verizon
WellsFargo
ReckittBenckiserGroup
Shire
BMW
BristolMyersSquibb
Wal-MartStores
HSBC
RoyalDutch
Shell
SABM
iller
Pfizer
British
Am
erican
Tobacco
Vinci
Orange S.A.CVS Health
IBM
Intel
FacebookNational Grid
AXA
Merck & Co.
Roche
McDonald’s
WPP
Petrobras
Apple
Chevron
JP Morgan Chase & Co.
Industrial & Commercial Bank of China
Enel
Relx Group
Telefonica
Citigroup
AbbVie
Royal Bank
of Canada
Union
Pacific
Toronto-Dom
inion
BankCentricaDiageoGenerali
BHPBilliton
UnitedHealthGroup
SamsungElectronics
CommonwealthBankofAustralia
RioTinto
Carrefour
TheWaltDisneyCompany
MEANING WELL
IS NOT ENOUGH
Purposeful brands are more
than worthy words
A purposeful brand rolls up its sleeves and turns theory into
tangible action – changing processes as much as inspiring
advocates. So when it comes to words vs. actions, how well
is your brand living up to its social promise?
Words
Brands’ score
on Purpose and
Storytelling
Actions
The average score
of brands’ across
Communications,
Performance and
Behaviours

EMBEDDING
YOUR PURPOSE...
Through our analysis, we have
an understanding of the basics
that most corporates are doing
well. These factors won’t really
make your purpose stand
out but are essential for any
organisation that embarks on
this journey.
WHO’S DOING IT RIGHT?
SUSTAINABILITY STRATEGY
CASE STUDIES
DOTCOM
SUSTAINABILITY REPORT
LEADERSHIP
SOCIAL
ANNUAL REPORT
RECRUITMENT
PARTNERSHIPS
VALUES
BUSINESS STRATEGY
BUSINESS MODEL
KPIs
PURPOSEFUL WORK
TARGETS
GOVERNANCE STRUCTURE
0 100%
Criteria companies score well on:
embrace a ‘show, don’t tell’
approach
They offer a compelling range of case studies and
stories, and though they may vary a bit in quality,
they clearly demonstrate how they’re contributing
to people’s lives and society’s wellbeing
communicate their purpose
through their dotcom
Purpose is being heroed across corporate
websites – whether it sits on the homepage,
their ‘About us’ section or an inspiring microsite,
it tends to be easily identifiable and accessible
for most organisations
of companies’ sustainability
strategies are fully aligned
with their purpose
Companies with a defined purpose or social
intent are clearly aligning it with their sustainability
strategy and report, reflecting this through a long-
term strategy with proven materiality

demonstrate how purpose is
intrinsic to the business strategy
Companies like Vodafone and Siemens have
integrated purpose into their business strategy,
demonstrating how purposeful actions are
contributing to the business competitive
advantage, profitability and long-term
business value
tell us purpose is at the heart
of their business model
M&S and AstraZeneca have created fully
integrated business models, centred around
creating a wider value for multiple stakeholders
and shaped by a clear purpose
have targets that prove their
commitment to demonstrate
progress towards their purpose
The best companies have clear short-, medium-
and long-term (+ten years) measurable targets
aligned with their purpose. For example,
Kingfisher’s Net Positive Plan is supported by
specific targets and its supporting pillars of
Timber, Energy, Innovation and Communities
describe how their governance
structures support the delivery
of their purpose
From Unilever, that has fully integrated its
Marketing and Sustainability areas, to Group
Danone that has created a specific role, Chief
Manifesto Catalyst, organisations are developing
structures for coordinated purposeful thinking,
innovation and delivery
integrate purpose to employees’
everyday work
Kering is giving opportunities to employees to
do purpose-related work, beyond philanthropy.
Through Kering Foundation and Kering University,
employees have solidarity missions with
craftswomen around the world to help strengthen
their local businesses
...AND GETTING
IT RIGHT
We identified what makes
an organisation achieve
recognition for their purpose.
Unsurprisingly, these elements
demand commitment, belief
and leadership across the
organisation.
Discovering what matters the most
Our research shows there’s a direct correlation between
having a clearly stated purpose and overall Index score.
Companies with an implicit social intent received an average
overall score of 57%, while organisations with a clearly stated
purpose which meets a world or societal need are scoring,
on average, 65%.
Why? As we stated at the beginning, making a contribution
to the world is not necessarily a new thing. Yet, in this ever-
connected and networked world, in which organisations
are more diverse and complex than ever before, purpose
is becoming a key element that holds everything, and
everyone, together. A well-articulated, meaningful purpose
becomes relevant to employees across cultures, it cuts
through business clutter and over-complexity and gives
everyone a clear and simple vision to focus on and unify
their endeavours. Not only that, a powerful purpose connects
companies to the world around them, giving all stakeholders
– from customers and consumers to NGOs and governments
– a reason to care, with a motivation for their existence that’s
in everyone’s interests.

ACTIONS SPEAK LOUDER
THAN WORDS
The Word-Action Gap
While overall scores per sector
are important, it’s also key to
look at whether a company’s
stated purpose aligns with
their activities. That’s why we
explored the Word-Action Gap
– to assess the difference.
To work this out, we compare
each organisation’s score in
the Purpose & Story criteria
against their scores across the
communication, performance
and behaviour criteria.
Sector
Word
score
Action
score
Word‑Action
Gap
Utilities 53.9% 54.4% 0.5%
Industrial Goods 65.9% 62.3% -3.6%
Basic Materials 54.5% 49.1% -5.3%
Consumer Goods 70.6% 63.7% -6.9%
Services 63.5% 55.0% -8.5%
Financial Services 58.6% 49.8% -8.8%
Conglomerates 76.5% 67.0% -9.5%
Technology 66.8% 51.8% -15.0%
Healthcare 72.9% 55.8% -17.1%
Healthcare crisis
Conversely, the healthcare sector has done a brilliant job
of articulating their purpose.
Every company from our sample in this sector has articulated
their reason for being in the form of a social purpose, scoring an
average of 72.9% for their articulation of that purpose. However,
when it comes to putting their purpose into practice, they fall down
the scale a little. This makes for quite a large gap between how
they articulate their social role and how they deliver on it. They
may be relying on the intrinsic nature of their business to tell a
‘good’ story, but in this transparent world, we demand more than
statements. So the question is, what can the sector learn from
Novo Nordisk, whose ‘Action’ scores have outperformed their
‘Word’ score?
Goods vibrations
Or perhaps there’s something to be learned from Conglomerates
and Consumer Goods? Companies in these sectors have figured
out not only why they exist, but also what to do to make an
impact on society at large. From Kering’s Environmental P&L
and Unilever’s Human Rights Report, to Philips’ Community Life
Centers, these sectors are clearly putting their purpose into action,
and letting their customers, employees and investors know they
are serious about making change happen.

RY FIT FOR PURPOSE INDEX | SECTOR OVERVIEW | 41
THE SECTORS:
WHICH
INDUSTRY
IS FITTEST?

50.3%
Basic Materials
69.3%
Conglomerates
66.0%
Consumer Goods
51.9%
Financial Services
59.9%
Healthcare
65.2%
Industrial Goods
55.7%
Services
55.4%
Technology
54.3%
Utilities
42 | RY FIT FOR PURPOSE INDEX | SECTOR OVERVIEW
SECTOR BY SECTOR
FIT FOR PURPOSE INDEX

BASIC
MATERIALS
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
OVERALL INDEX SCORE
60.2%
50.1%
55.1%
57.4%
50.9%
50.2%
46.2%
50.3%
64.3%
54.5%
ALL COMPANIES BASIC MATERIALS
The top five in this sector
BASF
73.9%
Best in sector:

Bayer
73.8%
Best in sector:
BP
72.6%
Best in sector:

Total
67.1%
Anglo American
66.6%
Is the Basic Materials sector
Fit for Purpose?
The Basic Materials sector is an unusual one – our everyday
lives depend on it immensely, yet the majority of its activities are
far removed from the end user. This may explain why the sector
has such a low score – it is the lowest performing sector in our
analysis and none of its companies made it into the top ten.
More than 75% of companies in this category have a purpose,
and this goes to show that simply having a purpose statement
is meaningless on its own. What is interesting about this sector
is the vast difference in scores, with European companies
outshining their international counterparts. BP in particular
scores very well given the recent challenges it has faced.
Purpose & story
Communication
Performance
Behaviour

CONGLOMERATES
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
OVERALL INDEX SCORE
60.2%
50.1%
55.1%
57.4%
74.7%
65.3%
61.0%
69.3%
64.3%
76.5%
ALL COMPANIES CONGLOMERATES
Philips
85.5%
Best in sector:

Siemens
75.9%
GE
70.3%
Best in sector:
LVMH
67.8%
Best in sector:
Samsung Electronics
46.9%
Is the Conglomerates industry
Fit for Purpose?
The performance of Conglomerates has been one of the big
surprises of this study. Given the scope of their operations and
territories in which they operate, one might assume the sector
would struggle to form a unifying purpose, and worse still to
embed it – but quite the opposite is true. Conglomerates are the
highest scoring sector – perhaps because they see purpose as
a way of unifying their diverse and complex companies. Philips
is the best of the Conglomerates and made it to an impressive
second in our overall rankings. Of the three US Conglomerates
in our sample, GE is the only one who could be included, and
they perform extremely well, most noticeably when it comes to
their corporate communications.

CONSUMER
GOODS
Unilever
89.3%
Best in sector:

Nestlé
80.5%
Best in sector:

PepsiCo
80.1%
Best in sector:
Danone
73.7%
Heineken
73.6%
Is the Consumer Goods sector
Fit for Purpose?
The Consumer Goods sector fares rather well in our analysis –
it has the second highest average score, and the second highest
concentration of companies with a purpose, after Healthcare.
Many of the companies in this sector have borne the brunt of
heavy public criticism in recent years, from Nestlé’s baby milk
scandal to PepsiCo and Coca-Cola becoming scapegoats for
the rise in obesity in the US and Europe. It may partly be in
response to this that the sector scores well above average for
communication. Many have major purpose-related campaigns
and maintain an active and engaging social media presence.
This sector includes three of our top ten, equalling the Service
sector, and contains our overall winner, Unilever.
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
OVERALL INDEX SCORE
60.2%
50.1%
55.1%
57.4%
70.0%
57.9%
63.2%
65.3%
64.3%
70.6%
ALL COMPANIES CONSUMER GOODS

FINANCIAL
SERVICES
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
OVERALL INDEX SCORE
60.2%
50.1%
55.1%
57.4%
53.0%
45.5%
51.0%
51.9%
64.3%
58.6%
ALL COMPANIES FINANCIAL SERVICES
Lloyds Banking Group
82.9%
Best in sector:

Bank of America
67.6%
ING
66.8%
Best in sector:
Barclays
64.5%
Aviva
63.8%
Is the Financial Services sector
Fit for Purpose?
Out of all the sectors we’ve analysed, Financial Services is one
that has suffered some of the harshest criticism in recent years.
With backlashes from the public due to the PPI scandal in the
UK, and of course the Global Recession, the sector has its work
cut out if it wants to fall back in favour with consumers and
stakeholders alike. It is then somewhat concerning that it is one
of the worst performing sectors and scores below average in all
the areas we analysed. There were, however, exceptions, such
as Lloyds Banking Group who have shown real commitment
to implementing their purpose of ‘Helping Britain Prosper’.
Following a familiar trend, it is the European companies
which once again outshine their international counterparts
in this sector.

HEALTHCARE
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
OVERALL INDEX SCORE
60.2%
50.1%
55.1%
57.4%
64.0%
47.6%
55.9%
59.9%
64.3%
72.9%
ALL COMPANIES HEALTHCARE
GSK
80.2%
Best in sector:

AstraZeneca
75.1%
Novo Nordisk
75.0%
Johnson & Johnson
74.0%
Best in sector:

Novartis
72.8%
Is the Healthcare sector
Fit for Purpose?
Healthcare is the only sector where every constituent has
a purpose, and the majority of these address a human or
world need. Being in the business of healthcare, you don’t
have to make much of a leap to make your purpose answer
to a human need.
However, formulating a purpose is just the first hurdle, and
it is in implementing and truly embedding their purpose that
many companies appear to struggle. In this sector we witness
a regional divide, European companies tend to score well while
their US counterparts lag behind. Some of this can be put down
to differences in reporting styles, but many of the US companies
appear less proactive in ensuring their purpose is present at all
levels and areas of the organisation.
Our top scorer was GlaxoSmithKline, whose purpose of helping
people to ‘do more, feel better, live longer’ is evident in all the
areas we examined. GSK’s achievement here shows the power
of having a purpose. The company, along with many of its
partners in the industry, has faced much criticism in recent
years over issues such as corruption in its Chinese operations, to
concerns about access to medicine for those who need it most.
The remaining companies in this sector had a great purpose but
are still struggling either in its communication or in embedding it
across its performance and behaviours.

INDUSTRIAL
GOODS
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
OVERALL INDEX SCORE
60.2%
50.1%
55.1%
57.4%
71.1%
55.5%
60.3%
63.3%
64.3%
65.9%
ALL COMPANIES INDUSTRIAL GOODS
The top four in this sector
Rolls-Royce
77.4%
Best in sector:

Airbus Group
71.9%
Saint-Gobain
71.1%
Best in sector:
Lafarge
70.9%
Is the Industrial Goods sector
Fit for Purpose?
Of all the sectors analysed, Industrial Goods is perhaps
the least consumer facing, and the one most focused on
business‑to‑business activities.
With consumer brands leading the way with purpose, it’s
perhaps no surprise that this sector has been a bit slow to
catch on. Half the companies in this sector have no purpose
or social intent, with only four in our Top 100. However, those
that do generally score fairly well. Rolls-Royce leads this sector
and also makes it into our Top 10, closely followed by three
French companies who all make a strong showing. These results
dispute the much-repeated view that purpose is a consumer-
focused exercise, because these companies are clearly finding
value in being more purpose‑driven.

SERVICES
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
OVERALL INDEX SCORE
60.2%
50.1%
55.1%
57.4%
57.8%
52.9%
54.3%
57.3%
64.3%
63.5%
ALL COMPANIES SERVICES
Pearson
82.3%
Best in sector:

Marks & Spencer
78.8%
Best in sector:

Kingfisher
77.7%
Sky
71.2%
Tesco
67.2%
Is the Services sector
Fit for Purpose?
The Service sector is unique given the wide range of companies
it includes, and the huge scope of activities they undertake.
Three of the companies from this sector contribute to our Top 10;
however, the sector as a whole performs slightly below average.
Given this sector’s high levels of interaction with consumers, it is
clear that more needs to be done to ensure purpose is translated
into every area of their organisation.

TECHNOLOGY
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
OVERALL INDEX SCORE
60.2%
50.1%
55.1%
57.4%
60.8%
40.8%
59.1%
56.8%
64.3%
66.8%
ALL COMPANIES TECHNOLOGY
BT Group
71.8%
Best in sector:
Vodafone
71.3%
Best in sector:
SAP
70.4%
Best in sector:

Microsoft
66.1%
Best in sector:
Qualcomm
64.4%
Is the Technology sector
Fit for Purpose?
This is rather surprising for a sector whose businesses are vital
in today’s interconnected world. Can you imagine a day without
Internet access, or without the opportunity to call from your
smartphone or even without using Facebook or Google?
To be fair, US companies approach reporting differently to
European companies, so we had limited access to information
to assess how their purpose relates to their business model,
KPIs or business strategy. Consequently, the sector score
is heavily penalised. However, nothing prevents American
companies from connecting purpose into their business
performance and sharing how they are doing it in the future.

UTILITIES
PURPOSE & STORY
COMMUNICATION
PERFORMANCE
BEHAVIOUR
OVERALL INDEX SCORE
60.2%
50.1%
55.1%
57.4%
58.7%
52.0%
52.4%
54.3%
64.3%
53.9%
ALL COMPANIES UTILITIES
The top four in this sector
Engie
72.9%
Best in sector:

National Grid
55.7%
Enel
51.5%
Centrica
48.0%
Is the Utilities sector
Fit for Purpose?
The Utilities sector is one of the lowest scoring sectors in our
analysis, and none of its constituents makes the Top 10. With
the exception of French energy giant Engie (formerly GDF Suez),
all companies in this sector make a poor showing – this is the
same regardless of geography or company size.
We rely on utility companies every day, and while many have
enjoyed monopolistic positions in the past, there is growing
evidence that consumers are more concerned than ever about
who supplies them with their utilities. And they’re voting with
their feet, moving towards smaller, challenger brands that
are more aligned with their values. This shows that even in
industries with comfortable margins, looking after more than
your shareholders matters.

52 | RY FIT FOR PURPOSE INDEX
CONTRIBUTORS
Who inspires us?
Last but not least, we recognise not every company made
it into our ranking given the sample we used, so we asked
the team who worked on this report to tell us about the
purposeful brands that inspire them:
Andrew Gorman, Managing Director
GMN: I’ve always respected GMN for their long held
enduring social purpose, committing them to promote
the liberal interest which, the great Manchester
Guardian editor CP Scott asserted as having ‘a moral
as well as material existence’.
Ben Richards, Consulting Director
WholeFoods: It’s unusual for a business that meets
such basic needs to be founded on such a strong
point of principle, and for that principle to enable the
business to gain such scale. Courage, integrity and
love all feature in their stated purpose.
Dan Jones, Consultant
Change.org inspires me because of the impact it
has had on raising awareness and creating social
movements. It democratises campaigning – no matter
who you are or where you live you can still have your
voice heard.
Emily Haynes, Team Lead
Tony’s chocolonely: Their mission to create 100%
slave free chocolate inspires me, but what I like most
about it is that it doesn’t take itself too seriously. Their
promise, ‘Crazy about chocolate, serious about people’
encapsulates their approach to being a purposeful brand.
Matt Gibbs, Researcher
Good Energy: They quietly offer to be part of the
solution to a problem affecting everyone. They
empower individuals and businesses to switch
their energy supply to renewable electricity, generate
their own renewable power and use their energy
more efficiently.
Michela Graci, Consultant
Stella McCartney: The brand is a driver of
change for the future of the whole fashion industry.
Stella herself is a strong advocate of protecting the
planet and doing good for society at large – while
increasing profits.
Paulina Lezama, Team Lead
Warby Parker: I love their belief that everyone has
the right to see – whether that’s at a ‘revolutionary’
price or as part of their ‘buy-a-pair, give-a-pair’ social
programme. Moreover, their attention to the brand
experience is impeccable: simple, beautiful and good.
Ruairi Carver Nolan, Researcher
BBC: From broadcasting public service
announcements during World War Two, to entertaining
millions around the globe today, BBC never loses sight
of its aim to ‘enrich people’s lives with programmes
and services that inform, educate and entertain’.
Simone Seiter, Senior Consultant
Patagonia: Their continuous growth shows purpose
doesn’t come at the expense of profit. By considering
and owning up to their responsibility towards all
stakeholders – from nature to consumers – Patagonia
inspires new consumption behaviours.

EVOLVING AND
IMPROVING
OUR ASSESSMENT
We are already thinking of ways
to progress our next edition of the
Fit for Purpose Index edition.
So, if this research has given you
a renewed sense of purpose, or
you can think of ways to improve
it and would like to be involved in
the next iteration of this research,
please get in touch at hello@ry.com
or +44 (0)20 7033 0700.

If you would like to find out more, please contact us at:
We’re Radley Yeldar.
We’re a creative communications business, helping you tell your
story simply, in one clear voice, by whatever means works best.
How do we do this? Well, we bring together our specialists to
help you talk with people inside and outside your organisation.
We ask the right questions. We offer unexpected insights.
We deliver the right practical solutions.
In this way, we help our clients keep valuable conversations
going with all sorts of people, from customers to shareholders
to staff.
The relationships that develop as a result tend to be meaningful
and enduring.
That’s because we believe in delivering authenticity and clarity.
You won’t ever hear us, for instance, spouting jargon or
consultancy mumbo-jumbo.
Our story is that we’ve been working this way since we started
in 1986. And we’ve grown every single year since then.
London office
24 Charlotte Road
London EC2A 3PB
T +44 (0)20 7033 0700
Birmingham office
108 Northwood Street
Birmingham B3 1TH
T +44 (0)121 200 3890
hello@ry.com
@RadleyYeldar
/RadleyYeldar
radley-yeldar
ry.com

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