Role of Purpose in Brand Growth

Executive Snapshot

Purpose-driven branding is now a proven growth strategy, not a feel-good fad. Companies that integrate a social or environmental purpose into their brand and culture are seeing measurable business gains – from faster revenue growth and higher brand value to improved customer loyalty and talent retention. In an era when over half of consumers and employees choose brands based on values, purpose-led companies are outperforming their rivals. Conversely, businesses seen as lacking purpose risk losing trust, talent, and market share.

Why This Matters Now

In 2025, purpose is a business imperative. Several converging trends make this especially urgent: younger consumers and employees expect brands to stand for something beyond profit, global challenges (pandemic recovery, climate change, social justice) demand corporate action, and investors are increasingly scrutinizing environmental, social, and governance (ESG) performance. Over half of consumers globally now consider a brand’s purpose and ESG stance a top-three purchasing factor, rather than a niche concern. Generation Z in particular votes with their wallets – one-third of Gen Z consumers say they’ll boycott a brand with poor ethics or labor practices. Employees are similarly motivated: nearly 90% of millennials and Gen Z workers say a sense of purpose at work is key to their job satisfaction. In short, the cultural climate has shifted – people want to buy from, work for, and invest in companies that align with their values.

At the same time, trust in institutions is low, and brands are filling the void. The Business Roundtable’s 2019 pledge to serve all stakeholders signaled that even the corporate elite recognize the need for purpose. Today, “purpose-driven” companies enjoy a tangible performance premium, as the findings below show. But getting it right is crucial: superficial “purpose-washing” can backfire in an age of social media scrutiny and consumer cynicism. Leaders must understand why purpose drives growth now – and how to authentically embed purpose to reap the benefits and avoid the pitfalls.

Five Key Findings

Values-driven consumers fuel growth – and punish the purposeless. Purpose now heavily influences consumer choice. A Bain survey confirms more than 50% of global consumers rank brand purpose/ESG among their top buying criteria. Consistently, IBM’s 2022 global study found “purpose-driven” shoppers (those who choose brands aligned with their values) now make up the single largest consumer segment at 44%. These consumers reward brands that do good, driving sales and advocacy. Conversely, failing on values can hurt: nearly 47% of consumers will stop buying from a brand that disappoints on social issues, and 17% won’t return at all. In sum, a clear purpose attracts customers – and lack of one repels them, directly impacting growth.
Brands with purpose exhibit faster growth and higher brand value. Multiple studies link purpose to superior market performance. Kantar’s BrandZ data found that brands perceived as having a high positive impact on society doubled their brand value growth over 12 years, far outpacing brands seen as low-impact. Similarly, purpose-led brands in major portfolios outperform: Unilever’s “Sustainable Living” brands (with articulated social or environmental missions) grew 69% faster than the rest of the business in 2018, contributing three-quarters of the company’s annual growth. This suggests that purpose-driven branding isn’t just a reputation boost – it translates into competitive advantage and tangible growth in brand equity and market share over time.
Purpose-driven companies financially outperform their peers. There is mounting evidence of a “purpose premium” in corporate financial results. In one analysis, 85% of purpose-led companies reported positive sales growth over a year, whereas 42% of companies lacking clear purpose saw revenues decline. Another global survey by CECP found companies with an authentic corporate purpose achieved 58% higher revenue than those without one. Even stock performance reflects this edge: a long-term study of firms known for prioritizing purpose and stakeholders showed they significantly outperformed the S&P 500 between 1996 and 2011. The takeaway is consistent – integrating purpose is correlated with stronger sales, higher growth rates, and better shareholder returns. Far from sacrificing profit, purpose-driven strategies appear to drive profit and resilience.
Purpose boosts employee engagement, retention, and innovation – fueling growth from within. A clear corporate purpose doesn’t just win customers – it also energizes the workforce. Research shows that employees who find their work meaningful and aligned with a company’s purpose are more productive and loyal. For example, purpose-driven employees are 54% more likely to stay with a company for 5+ years (and 30% more likely to be high performers) compared to those at non-purpose firms. Millennial and Gen Z workers overwhelmingly factor social and environmental values into career choices, giving purpose-led organizations an edge in attracting and retaining talent. This cultural advantage translates into innovation and growth: when people believe in what the company stands for, they bring more creativity and discretionary effort. Indeed, in one survey, 84% of executives agreed that having a shared purpose facilitates organizational transformation and innovation. By inspiring employees and unlocking their potential, purpose-driven companies create a virtuous cycle of better customer service, faster innovation, and stronger performance.
Embedded purpose drives long-term resilience and competitive advantage. Purpose is proving to be a strategic differentiator in the long run. Brands that authentically embed purpose into their core business enjoy stronger stakeholder trust and often bounce back faster from crises. Bain & Company’s analysis of consumer goods brands finds that those delivering on higher-order, “ethical” or sustainable values achieved 5× higher revenue growth than those focused only on basic product qualities. And when purpose is truly integrated, it can even lower costs of capital or open new opportunities – for example, Danone obtained cheaper financing by committing to ESG goals. Leaders also note that lack of purpose creates strategic risk: only 7% of Fortune 500 CEOs now say companies should focus solely on profit, knowing that ignoring stakeholders leads to backlash. The evidence is clear that purpose-driven brands not only grow faster, but are also building more sustainable, future-proof businesses. They differentiate themselves in crowded markets and foster customer trust and loyalty that acts as a buffer in economic downturns or reputational crises. In essence, purpose has become a source of durable competitive advantage for companies that embrace it sincerely.

Implications for Brands

The data above dismantles the old notion of a trade-off between purpose and profit. Purpose-driven branding and culture emerge as accelerators of growth – but only when done authentically. For brands, this means purpose can no longer be a glossy add-on or CSR side project; it must sit at the heart of strategy. Companies should identify a purpose that aligns tightly with their business and stakeholder expectations, and use it as a north star for decision-making. When a brand’s purpose resonates with consumers’ values and is backed by consistent action, it creates loyalty, differentiation, and pricing power – as evidenced by consumers willing to pay premium prices for value-aligned brands.

However, the execution of purpose is where winners separate from losers. Many firms profess lofty missions, but few truly integrate them. (Notably, while 76% of marketing leaders think their organization has a defined purpose, only 10% have activated it company-wide.) The implication: brands must bridge this “purpose gap” by embedding purpose into products, experiences, and culture. Authenticity is paramount; stakeholders will quickly call out insincere or inconsistent behavior. In practice, brands need to be prepared to make hard choices in line with their values (as CVS did by dropping tobacco, or Nike did taking a stand on social justice) to earn credibility. In today’s hyper-transparent environment, companies that live their purpose will attract customers, talent, and investors – those that don’t will find growth increasingly hard to come by. Purpose is now a baseline expectation and a growth catalyst; ignoring it is not a viable strategy.

Mini Case Study: Unilever’s Purpose-Led Growth

Unilever provides a compelling real-world example of how purpose-driven branding fuels business growth. In the mid-2010s, then-CEO Paul Polman oriented Unilever’s strategy around the Sustainable Living Plan – a company-wide commitment to social and environmental purpose. This meant each brand needed a clear mission, from Dove’s body positivity to Lifebuoy’s hygiene initiatives. The payoff was soon evident: Unilever’s “Sustainable Living” brands grew 69% faster than the rest of the business in 2018, and accounted for 75% of the firm’s overall growth that year. Seven of Unilever’s top ten brands, including Dove, Hellmann’s, and Ben & Jerry’s, fall under this purpose-led category. A closer look at Dove illustrates the impact – the Dove “Real Beauty” campaign embraced an authentic purpose of inclusivity and self-esteem. As a result, Dove’s U.S. sales grew ~8.7% annually from 2004–2009, triple the category rate of 2.8%. These numbers underscore how Unilever’s focus on purpose translated into competitive growth even in mature markets. By infusing purpose into product innovation, marketing, and corporate culture, Unilever strengthened consumer loyalty and opened new market opportunities (such as sustainable products attracting eco-conscious shoppers). The Unilever case shows that purpose-driven brands can achieve superior growth at scale, not just in niche segments – a persuasive argument for integrating purpose into core business strategy.

Action Checklist for Brand Leaders

To leverage purpose as a growth driver, brand executives should take the following actions:

Define an authentic purpose aligned with your brand’s DNA: Identify a societal or environmental mission that naturally fits your company’s history, products, and competencies. A credible purpose (“why we exist”) should address real stakeholder needs and connect to your unique strengths – avoid generic slogans. (Insight: Purpose must ring true to resonate with consumers and employees.)
Embed purpose into strategy and operations: Make purpose a guiding lens for decisions in innovation, supply chain, marketing, and beyond. Set measurable goals (e.g. sustainability targets, social impact metrics) and integrate them into core business plans. Tie executive objectives and KPIs to purpose outcomes, ensuring it’s not just PR. (Insight: Purpose-driven promises require follow-through via concrete business practices.)
Cultivate a purpose-driven culture: Communicate the purpose clearly throughout the organization and empower employees at all levels to act on it. Provide training and forums to align teams on how their work advances the purpose. Reward behaviors and innovations that support the company’s values. Leadership must consistently model the purpose in actions and policies to build trust. (Insight: Employee buy-in converts purpose from a statement into lived behavior.)
Engage consumers and stakeholders in your mission: Invite customers, partners, and communities to participate in your brand’s purpose initiatives. Storytell the impact your brand is making – with transparency and humility – to deepen trust. Solicit stakeholder feedback and co-create solutions (for example, crowdsourcing ideas or supporting user communities tied to your cause). (Insight: An activated stakeholder network amplifies your purpose and fosters loyalty.)
Measure impact and adapt: Just as you track sales, rigorously measure your purpose-driven efforts (e.g. social impact, consumer perception changes, employee engagement) and their correlation with business results. Use these insights to refine your strategy. Share progress publicly to maintain credibility. Be prepared to course-correct if initiatives aren’t delivering expected impact or come under stakeholder criticism. (Insight: Continuous improvement and accountability are key – purpose is a journey, not a one-off campaign.)

By taking these advanced steps, leaders can ensure that purpose is not just a motto on the website but a genuine engine of innovation, customer connection, and sustainable growth.

Source List (APA)

Almquist, E., Edwards, K., Dowling, P., & King, A. (2023, November 13). Does a Purpose Help Brands Grow? Bain & Company. Retrieved fromhttps://www.bain.com/insights/does-a-purpose-help-brands-grow-ceo-sustainability-guide-2023/

Benevity. (2025). State of Corporate Purpose 2025. Benevity. Retrieved fromhttps://benevity.com/state-of-corporate-purpose-2025

Esterday, M. (2025). Sales Success and the Importance of Tapping Into Purpose. Integrity Solutions. Retrieved fromhttps://www.integritysolutions.com/blog/sales-success-purpose-values/

Haller, K. (2022, January 13). How retailers can meet consumers’ growing demand for sustainability and hybrid shopping experiences. IBM Newsroom (IBM Institute for Business Value). Retrieved fromhttps://newsroom.ibm.com/How-retailers-can-meet-consumers-growing-demand-for-sustainability-and-hybrid-shopping-experiences

Luo, L. (2020, October 22). How Unilever Aligns Its Portfolio Actions with Its Long Term Vision for the Future. Strategyzer. Retrieved fromhttps://www.strategyzer.com/library/how-unilever-aligns-its-portfolio-actions-with-its-long-term-vision-for-the-future

McKinsey & Company. (2020, April 22). Purpose: Shifting from why to how. McKinsey Quarterly. Retrieved fromhttps://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/purpose-shifting-from-why-to-how

Pascaud, L. (2018, October 4). The four-step journey to purpose-led growth. Kantar. Retrieved fromhttps://www.kantar.com/inspiration/brands/four-step-journey-to-purpose-led-growth

Sweeney, E. (2018, April 19). Study: Brands with a purpose grow 2x faster than others. Marketing Dive. Retrieved fromhttps://www.marketingdive.com/news/study-brands-with-a-purpose-grow-2x-faster-than-others/521693/

TL;DR (Key Takeaways):

Purpose-driven branding isn’t just altruism – it’s linked to higher growth. Brands seen as having a positive impact grew much faster than ones that didn’t.
Consumers (especially Gen Z and millennials) now vote with their values. Over half consider a brand’s purpose when buying, and many will drop brands that don’t align with their ethics.
Financial outperformance: Purpose-led companies are delivering stronger results. Studies show they enjoy higher revenue growth, faster sales increases (85% vs 42% decline for non-purpose firms), and even better stock returns long-term.
Talent magnet: A clear purpose boosts employee morale and loyalty. Purpose-driven firms attract value-driven talent and see significantly higher retention and engagement, leading to more innovation.
Bottom line: Making purpose central to your business strategy can be a real competitive advantage – driving customer trust, employee passion, and sustainable financial gains. Brands must be authentic and proactive in living their purpose to reap these rewards.