Let’s start with the facts:
- The economic costs of the lack of purpose exceeds £130bn a year
- Purpose improves financial performance by diminishing moral hazard, decreasing the cost of labour and increasing capital inputs
- Purpose-led companies deliver positive risk-adjusted stock returns of up to 7.6% annually
- High sustainability firms also outperform on accounting-based measures, such as return-on-equity (ROE) and return-on-assets (ROA)
- The level of systematic risk is statistically and economically significantly lower for firms with higher purpose
- High purpose firms have crisis-period stock returns that are 4 – 5% higher
- Purpose drives more and better innovation
Quite simply, the economic benefits of purpose are significant, measurable and desirable.
So how can you get some of this secret sauce?