Sustainable Brands: the Importance of Purpose Statements

When it comes to business purpose, actions speak louder than words—and that’s what makes purpose statements so important.

As the world wakes up to the immense challenge of creating a more sustainable future, we are seeing the emergence of a plethora of businesses that have sustainability at their heart.

These are the organisations whose existence is intrinsically linked with reducing our impact on the environment and creating a positive impact on society.

Think brands like Beyond Meat, Solar City or Allbirds.

They exist because sustainability matters, because equality matters, because ethics matter.

These brands are true Purpose-Driven Organisations (PDOs)—they don’t just talk about purpose, they live it.

The emergence of PDOs has happily coincided with another huge development in branding and organisational structure: the purpose statement.

Not everyone has one, but everyone should.

Some organisations operate for years with an unspoken or undefined purpose, but sooner or later, crystallising that purpose into a clear and compelling purpose statement becomes essential.

What is a Purpose Statement?

The importance of a formal purpose statement as a standalone has become increasingly important over the past few decades in business and organisational strategy.

Many brands have operated with a strong sense of purpose for centuries, even without explicitly stating it.

But, a formal purpose statement can help solidify your company goals and mission for all stakeholders.

As noted in the Harvard Business Review:

A purpose statement should clearly explain how the organisation will contribute to human, societal, or environmental goals.

Simon Sinek defines purpose as the ‘why’ behind what an organisation does.

He gives the example of the Wright brothers taking to the skies, not for profit, not for fame and not so they could keep their board of investors happy. But because of the incredible positive impact it would have on the world.

So, when putting a purpose statement together, it’s important to identify and focus on the ‘why’ behind what you do.

Take BlackRock’s as example: To help more and more people experience financial well-being.

And consider how your brand might incorporate sustainability values within your statement.

Aligning Values with Purpose for Sustainable Futures

Sustainability isn’t just about the environment, it’s about people and societies wellbeing too.

The University of Cambridge Institute for Sustainability definition sums this up well:

…about achieving prosperity and welfare (wellbeing) for all of society (equitable) over the longer term (durable). To ensure that sustainability is a key point of focus for organisations, it’s really important that their values are right, so they can build a strong set of behaviours.

Two things are now happening.

• Firstly, organisations that have never had a purpose statement are creating new ones, and very often these statements feature rhetoric closely aligned to that found in the world of sustainability.
• Secondly, organisations that have been around for a while and already have some sort of purpose statement are now changing it. Sometimes on a fairly regular basis. Once again, sweeping in language that will make them appear to be closely tied with the virtuous goal of doing something good.

It’s worth noting here, that if you’re successful and you have a purpose statement, then that purpose statement should be good to go.

It should be your North star, never changing.

However, values and behaviours are different, we can adjust them to create positive change. It’s what we do and how we do it, that can lead us forward and inspire us.

They can always change.

But all that needs to be in service to the ‘why’ – our purpose.

What Makes Organisations Change Their Purpose?

Several factors can influence businesses to alter or adjust their purpose statements.

These pressures can arise from internal, external, and societal factors.

Here's a breakdown of some key pressures:

• A change in leader can often give rise to a new agenda being placed on the table and a shift in the company's purpose.
• Internal culture shifts can influence values, ultimately leading to a realignment alignment of the existing purpose.
• New regulations or policies can impact a company's operations and require adjustments to its purpose to comply with legal requirements.
• Stakeholder expectations like investors, customers, employees, and communities create expectations of a company's purpose and social responsibility.
• Increasing public awareness of social and environmental issues can pressure businesses to adopt more sustainable and ethical practices, reflected in their purpose statements.

As our director Sally Tarbit notes in a recent blog:

To be successful your purpose needs to be integral to business strategy and realised through all aspects of your operation.

Crafting generic purpose statements with identical language and goals can blur your organisation's unique identity, leading to a lack of differentiation and the loss of your original purpose.

Ford Motor Company’s Purpose Evolution

Let’s look at how Ford’s statement has evolved over time, while staying true to its core.

Early Years (Late 19th to Early 20th Century):

To put the world on wheels and produce an affordable vehicle for the general public.

Early 21st Century:

To make people’s lives better by making mobility accessible and affordable

Present:

To help build a better world, where every person is free to move and pursue their dreams.

This evolution reflects Ford’s ability to adapt its purpose to the needs of each era while maintaining a clear connection to its roots.

However, filling a purpose statement with trendy buzzwords won’t cut it. It dilutes the message and confuses the true meaning of your organisation’s “why.”

That’s the flip side of this coin: when a powerful purpose statement—one that genuinely links what your organisation does to why it does it—gets watered down, its impact is lost.

Now, to be clear, the drive toward a more sustainable and ethical future is something to be celebrated.

It’s a movement that pushes us all forward, and that can only be a good thing. But when organisations overstep, chasing trends or overstating their ambitions, they risk losing credibility—and quickly.

Final Thoughts

We can create a more sustainable vision, we can support it with values and behaviours that inspire and energise our employees, driving growth and ultimately profit.

We can even create a new, more dynamic powerful purpose statement.

But, lets just ask ourselves- why are we doing it?

Is it because we have not fully articulated the reason why we exist, what makes us different and why we will succeed, getting to the heart of our ‘why’ and building around that.

Or is it to align ourselves with societal pressures, external regulation and internal stake holder expectations?

Get in Touch

If your organisation has sustainability at its heart, then The Team can help you articulate that within your purpose. We can weave it into your values and behaviours.

We can create a strategy and vision that folds these things into your future. But we can also help you find your unique purpose regardless of various pressures swirling around your organisation. We’ve been doing it for over 40 years now.