IS YOUR BRAND PURPOSE READY?
Only one in ten companies is convincing across the board
Turbulent times for companies: The transformation to a more sustainable future is already substantially challenging many corporations. Additional pressure comes from the war in Ukraine, exploding energy costs, inflation, and the shortage of skilled workers.
Considering the global multi-crises, companies are even more called upon to demonstrate their positive contribution to society. Yet only just under a tenth of the companies and institutions surveyed have the appropriate basis to fully convince with a credible purpose in this volatile environment.
The Globeone Purpose Readiness Index is one of the largest purpose credibility measurements of German companies. More than 4,300 consumers were asked to evaluate around 130 organizations whether they are future-proof, sustainable, authentic and socially relevant.
Especially interesting: Image factors bundled in the PRI jointly explain on average over 40% of the overall evaluation of a brand. Consequently, it makes a great deal of sense to pay attention to the purpose-related side of brand perception. Brands are not powered by product performance, service quality and price perception alone.
Top 5 brands
Bottom 5 brands
“In what is probably the biggest transformation of the economy and society, mere lip services by CEOs are no longer helpful. Companies are expected to help solve society’s biggest challenges. Our study reveals whether companies can credibly use a purpose to outline their positive contribution and sustainability efforts.”— Dr. Niklas Schaffmeister, Managing Partner
“The current sense of crisis is proving to be a real litmus test for the purpose of companies. We clearly see that the critical perception of large corporations is growing. Especially stock-listed companies will have to go the extra mile to match the level of purpose credibility of family and foundation-owned businesses.”
“The current sense of crisis is proving to be a real litmus test for the purpose of companies. We clearly see that the critical perception of large corporations is growing. Especially stock-listed companies will have to go the extra mile to match the level of purpose credibility of family and foundation-owned businesses.”
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 present 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 Index 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 their 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, consumer, the public and investors when it comes to purpose-relevant aspects and ESG criteria.
Why do we need an index for Purpose?
We can only improve what we measure – that’s why Purpose also needs benchmarking. Turnover, profit and investments are variables that can be precisely quantified in the context of a company, for example with the previous year’s results. But how can company leaders determine to what extent their company has the necessary basis for a credible positioning with a purpose?
Globeone has developed the Purpose Readiness Index (PRI), a sound measurement model for purpose credibility. In the video interview, Managing Partner Dr Niklas Schaffmeister explains what exactly the PRI measures, who scores well in the current index and how a sustainable activation of a company’s purpose can be achieved.
Facts about the study
4,300
Participants
+130
Companies measured
Q3 2022
