January 2021

The Purpose Shift – how a convergence of crises will accelerate purpose in the year ahead

By: The Bruxton Group and The Purpose Collaborative

For businesses, this meant a growing movement to embrace purpose—a reason for being beyond profits, grounded in humanity—to do well and do good by solving some of the world’s biggest societal challenges. 2020 accelerated this movement by forcing companies to reprioritize; put their employees, customers, and communities above shareholders; and use their capabilities to respond to the pandemic with agility and empathy.

The world we woke up to on January 1, 2021 was far different than what we imagined it would be a year ago. Yet, we will enter the year armed with lessons from 2020, as well as new challenges, new opportunities, new beginnings and renewed hope.

Each year, we gather purpose “predictions” from the Purpose Collaborative, the nation’s leading collective of purpose-driven firms advancing business and societal impacts for organizations around the world. This year, their insights take on new meaning.

Where We’ve Been: Purpose and the Pandemic

Pre-pandemic, society grappled with an impending climate crisis, along with all the other pressing global-social challenges of today—from hunger and homelessness to healthcare and education.

While COVID-19 became “the” issue of 2020, it also highlighted and exacerbated underlying issues like inequality, the state of our prison systems, access to education and technology, and so much more. In the U.S., the killing of George Floyd—and too many others before and after him—reignited the ongoing movement for racial justice and equality.

This convergence of issues challenged companies to step up in unprecedented ways, as more citizens looked to the private sector to take action that stretched NGOs and gridlocked governments couldn’t. “Over two-thirds of all philanthropic dollars donated to the pandemic came from the corporate sector,” said Brittany Hill, CEO of Accelerist. “Purposeful companies realized that they, yet again, can fill societal, governmental and economic gaps in times of crisis.”

The organizations with an established purpose pre-pandemic were far better positioned to respond to the events of 2020 with speed and—most importantly—empathy and humanity. “Purpose has served as an antidote to paralysis, helping companies stay focused and motivated in extremely adverse conditions,” said Fabio Milnitzky, CEO of iN. “When all else is uncertain…people turn to what they know is true and unchanging—purpose—as inspiration and direction for decision-making.”

Though awareness of the role of purpose in business has grown in recent years, purpose as a core business strategy had never been put to the test as it was at the height of the pandemic. “Purpose-driven actions have brought us bright spots amidst the immense tragedies of 2020—from growing COVID-19 deaths to the anguish of racial injustice,” said Carol Cone, Founder and Chairman of the Purpose Collaborative and CEO of Carol Cone ON PURPOSE.

Where We’re Going: Purpose in 2021

The silver lining of 2020 is that the world is now entering an era of “shifting paradigms,” explains Raphael Bemporad, Founding Partner of BBMG. “Brands are becoming increasingly ‘regenerative,’ evolving from ‘sustainable’ and ‘resilient,’ with higher aspirations and a determination to challenge the status quo to improve the system for all.”

“Purpose will be at the core of every sensible organization adapting to a post-COVID world, taking into account the new reality of employees, their goals and their redefined relationship with their communities,” said Harold Hamana, Managing Partner, Knight Pawn Corp.

With this new paradigm, Purpose Collaborative members say the following trends will define purpose in 2021.

Trend 1: Authenticity will be expected

To achieve its full potential—that is, driving both positive business and societal impacts—purpose must be authentic, “genuinely prioritizing what is right for the world over what is most profitable,” said Danielle Finck, Founder and CEO of Elle Communications.

Companies today “have a responsibility to be more authentic. People are more in awe of what they can be instead of what they should be,” said Cory Grabow, Partner & CEO at Bruxton Group.

Post-pandemic, ‘authentic’ will tenaciously attach itself to corporate actions rather than corporate intentions,” said filmmaker Elliot Kotek, CEO of The Nation of Artists. “Purpose will be measured in by the trio of action, transparency, and accountability.”

“Being authentic in purpose will mean companies leaning in on this to guide decisions, allowing it to be tested and challenged,” said Annie Longsworth, Executive Managing Director at RF|Binder. “Purpose must be used as a brand’s lens for all decision making, innovation, crisis response, engagement, growth plans and opportunities.”

Trend 2: Action will be a mandate

With this increased focus on authenticity, storytelling will evolve into “story-doing,” as companies increasingly take action before they communicate about it. “We’ll hear stories about real risk-taking, about rolling up sleeves and jumping in to help,” said Laura Ferry, President of Good Company. “We will learn about the people who bravely stood up, helped others, or marched for a cause.”

“We are seeing a large increase of bold, long-term commitments by companies around transforming their organisations, value chains and even industries,” said Andy Schmidt, Managing Director of Pearl Consulting Europe. “While those long-term commitments are needed, consumers, employees, and investors expect for them to be backed up by short-term action. 2021 and the years ahead will belong to the businesses demonstrating short-term actions that bring their purpose and long-term commitments to life.”

Trend 2: Stakeholder capitalism will grow

The purpose of a corporation is no longer just to maximize profits for shareholders, but to serve and create value for all stakeholders. This movement, called “stakeholder capitalism” by global leaders including the World Economic Forum and Business Roundtable, refocuses short-term action and long-term vision to impact customers, employees, suppliers and partners, local communities, and the environment. Done smartly and authentically, this approach supports bottom-line growth.

“Six-in-ten people under age 30 want the post-pandemic recovery to prioritize ‘restructuring our economy so it deals better with challenges like inequality and climate change’,” found a global study from BBMG. “Young people are looking for a reset rather than a return to the status quo,” said Bemporad.

The pandemic served as a pressure-test for stakeholder capitalism, forcing companies to put human needs—from worker safety to customer support—before short-term profits. It has brought the importance of employees, customers, and communities into sharper focus, while inspiring new ways to address societal needs through business capabilities.

Trend 3: Corporate leaders will take the purpose mantle

The C-suite has been tasked with a new role as beacons of direction and hope amid turmoil.  “The long-term impact of COVID-19 will present major challenges for CEOs, and they will need to rely heavily on core purpose to navigate what could be rough seas ahead,” said Ferry.

Governing boards will also play an increasingly important role in advocating for and advancing purpose within their organizations. “The acceleration needed for stakeholder capitalism requires more boards demanding social and environmental impact as a key business strategy for short- and long-term growth,” said Phillip Haid, Founder & CEO of Public Inc.

“There is so much work to be done [by governing boards] to develop and foster an approach to business that works for all people, and not just for a select few,” said Carrie Fox, CEO of Mission Partners.

Trend 4: Employee welfare will become a priority

With this, “purpose will be a larger part of the conversation about the new world of and working virtually” says Aaron Hurst, CEO & Founder of Imperative. The rapid pace of business adaptation in 2020 has been remarkable, presenting new requirements and opportunities with more focus on employee welfare and culture.

While the C-suite must carry the mantle of purpose, it will not drive business and societal impacts if not developed, embedded, and activated by employees. “When the public sees a 7 or 8 figure a year CEO championing a cause or purposeful mission, it rings hollow and inauthentic with the public,” said Alan Chebot, Owner of Parallax Productions.

“A leader committing to purpose is a promise for change. Employees committed to purpose is an engine for change,” said Jeff Blaylock, Vice President, Kith.

Trend 5: Companies will collaborate at scale

The scale of the pandemic forced companies to work together to develop solutions and address critical needs. Organizations not only applied their own time, talents, innovations and capabilities to respond to COVID and the racial justice movement, but also worked alongside others to accelerate progress and supplement their own efforts. “2021 will be the year that industry competitors become industry allies,” said Melissa Orozco, Founder & Chief Impact Officer of Yulu PR.

While the most notable collaborations happened on the national or global level, “it was individual communities and small businesses banding together to help those who were less fortunate” that made some of the biggest impacts,” said Blaylock.

Looking Ahead

“We must not ever forget the events that defined 2020, or the lessons they taught us as business leaders, individuals, or as a society,” said Cone.

“We must continue lifting up the heroes—from the truck drivers delivering food at the height of the pandemic and our healthcare heroes to the millions of people of color and their allies who bravely march for equality.”

2021 will be an even larger test for businesses around the world. Those that continue to embrace and embed purpose—or take the wise step to define and integrate a purpose—will define the next 12 months, and our collective future as a society.

The Purpose Collaborative is a global group of 40+ firms and subject matter experts, represented by 400+ professionals in 20+ countries, all developing breakthrough work to help organizations accelerate their social purpose. Founded by Carol Cone, considered the pioneer of purpose, Purpose Collaborative members are hand-selected based on their unique capabilities and prominence in the field.