WHEN IS A COMPANY “PURPOSE READY”?
Companies with a clearly communicated purpose grow at an above-average rate, are more innovative, and more productive. But not every company succeeds in living up to its purpose. A company is ready to credibly represent a purpose if it is seen as honest, authentic, responsible, sustainable, and future proof. Only then can it convincingly address all stakeholders and communicate its purpose beyond doubt: It is “purpose ready”.
At the heart of the “Purpose Readiness” study is the question of whether the German companies, media brands and institutions surveyed are ready to position themselves credibly via a socially relevant reason for existence. For this, they should have as few negative associations as possible in the public perception, which the Purpose Readiness Index (PRI) depicts by querying relevant image dimensions. Good PRI results help companies to better withstand the critical scrutiny by employees, consumers, the general public and investors when it comes to purpose-relevant aspects and ESG criteria.