Do We Really Need Brand Purpose?

A lot has been said about “purpose-driven brands,” both good and bad. Hailed as a heroic new(ish) way of approaching business. Exposed as marketing puffery without real commitment. Paraded across agency websites & name-dropped on industry blogs. Whatever it is, many in the marketing community are interested. But what role does brand purpose serve, and do we really need it?

Businesses have a reputation for being corrupt, money-hungry entities that don’t hesitate to prey on an unassuming public. It doesn’t reflect the entire business community, but it does have an impact on people’s perception of businesses, and sows distrust. I believe we can do better. But I also acknowledge a long history of businesses doing damage to people and society. If you want to look at where the hankering for “authenticity,” comes from, it’s probably rooted in a desire to distinguish brands from the many businesses who are caught lying or misrepresenting in some way, shape or form, combined with consumers’ appetite for transparency.

People are right to be skeptical of businesses.

However, some businesses have chosen to use their power for good, not evil. They are actively pursuing a purpose greater than money alone. And some even want to change the world for the better. But can businesses really be about something other than money? And can businesses actually change the world if they have to make money while doing it?

When people say “brand purpose,” I think one of the most limiting aspects about it is that it suggests a single reason for being. By definition, “purpose” is:

Emphasis my own. When you reduce it down to one reason, and one reason alone, I think it’s hard to say it’s for a social cause.

For example, most people probably think of Patagonia as a brand that’s dedicated to the environment. For many years, its stated mission was: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” This encapsulated both an intention to create good products and limit impact on the planet, even those ideas may be somewhat in conflict with each other.

This still acknowledges that Patagonia is a business. If you don’t make money as a business, you can’t exist. It doesn’t matter if you have the greatest ideas for making the world a better place, you can’t advance them as a business, if you can’t keep the lights on. Money may not be your reason for existence, but it is a necessary means to an end.

This is one reason why businesses implement a brand purpose. To publicly declare that money is not the reason for existence.

Patagonia’s reason for existence reflects a recognition that our planet faces an existential threat. On the product side, Patagonia is committed to sustainable materials and manufacturing processes. On the brand side, they’re using their platform to advocate for change. They write stories, make movies, sue the government, protect public lands, promote grassroots activists, make public declarations in national newspaper ads, and more.

Similarly, if your business is dedicated to any number of social causes, whether it’s poverty, gender equity, health, etc., wouldn’t the best solution, the purest purpose for being, the most positive impact, come from dedicating all of your resources to tackling the issue?

Nonprofits play a hugely critical role in the U.S., especially since our government does not have as robust of a safety net as others do. They provide support for some of the most marginalized groups in society, ensure people don’t go without food and shelter, take bold steps to mitigate the climate crisis, care for animals, and tackle many, many, other important issues.

But there’s a catch: nonprofits still have to “make money.” And if they don’t make/acquire money, they also can’t operate. No matter how you spin it, organizations have to find ways to finance their operations. So even if you’re a big believer that “money is the root of all evil,” you can’t escape that money is also needed to scale any kind of operation, and if you want to make maximum impact, you’ll need it.

Just because nonprofits are by definition supposed to exist to do good, does not make them immune to the shortcomings of human beings. People make mistakes at nonprofits, too. They tell lies. They act out of selfishness. They steal money. They perpetuate ethnic and gender pay gaps. Nothing about being a nonprofit guarantees a purity of existence.

No matter what kind of organization you have, it’s not enough to set out with the idea that you want to do good. Your actual impact is dependent on the actions of each employee, each day. Your impact is the consummate of a million tiny decisions that add up to a giant wave of change. The big decisions that fundamentally change the course of your business. The line in the sand that says, “this is worth protecting, and we’re going to defend it.” Ultimately, impact doesn’t come from ideas, it comes from action.

All organizations are ultimately powered by imperfect people. Which means that to create an organization (business or nonprofit) that creates a positive impact, you have to do more than just set out with a good intention, or a strong founding idea. You have to design systems, nurture leaders, and create a culture that will lead people to make decisions that align with your organizational values. Everyone likes to talk about brand purpose and reason for being, but your brand values are probably just as important, because they guide the decisions people make, and ultimately affect outcomes.

We know both nonprofits and businesses can aim to create a positive impact, are run by imperfect people, and need to make money to stay in existence. But there’s a major difference between nonprofits and businesses. It’s likely a major motivating factor in the earlier examples of businesses doing harm to society, too. Why would you lie about the health impacts of sugar, addictive potential of opioids, or pollution? Because the most important thing, above all else, is making money.

Nonprofits aren’t optimized toward revenue generation. They’re obligated to make money, but that’s not what they’re optimized for. Businesses, especially companies who report to shareholders or venture capitalists, are incentivized to make money, at all costs. Money is the most important thing. And when money is more important than everything else, ethics often take a hit.

A brand purpose may be trendy, but it’s far from a guarantee that your brand will have a net positive impact. A brand purpose is a starting point (and may not even be a logical one if your brand is already here, and didn’t start on the foundation of social impact, but that’s a story for another day). Whether you have an impact-driven brand purpose or mission statement, that’s just the beginning of a journey toward making a positive impact.

It’s worth noting that just because Patagonia’s purpose is to save our home planet, doesn’t mean there isn’t value in the products they provide. You can’t ski naked. Equipping people to enjoy the outdoors may not be directly saving the world, but it’s a noble pursuit nonetheless (and part of saving the planet is getting people to care about nature enough to protect it)

If you want your business to have a positive impact, brand purpose is one tool in the toolbox for organizing around a belief that you exist for more than just making a profit. It’s not the only one, and it alone will not save you. But it’s certainly a good start.

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