How purpose will be a beacon for business leaders in 2024
As a member of the Purpose Collaborative — a global network of purpose-driven firms and professionals organized by Carol Cone ON PURPOSE — 18 Coffees co-founder Robin Chung was recently asked about purpose predictions for 2024. Read her thoughts in Fast Company here and below.
01-02-24
The four Cs—colleagues, communications, collaboration, and courage—will shape the business landscape over the year ahead.
BY CAROL CONE AND KRISTIN KENNEY 9 MINUTE READ
In the wake of a tumultuous year for ESG, many business leaders are asking what comes next not just for environmental, social, and governance issues, but for corporate purpose overall. And while the majority of Americans don’t have an issue with the term “ESG”, the business world found the acronym in the crosshairs of an increasingly politicized debate, which had ripple effects that are shaping how businesses “talk about social issues as well as what they actually do to address them.”
The ESG backlash and confusion has converged in an economic and social climate that is best termed as “VUCA”—volatile, uncertain, complex, and ambiguous. However, CEOs are increasingly vocal about the difference between ESG (a framework that enables companies to account for environmental, social, and governance-related investments and returns) and purpose (a north star and reason for existing, beyond profits). H&R Block CEO Jeff Jones stated this succinctly: “I believe strongly that purpose is not ESG or diversity. And as leaders we can’t let purpose get rebranded into woke capitalism. People are craving meaning and clarity.”
It was through this lens that we asked the Purpose Collaborative, our member network of more than 40 social impact-focused firms, to share their predictions for the year ahead. Together, this brain trust is composed of more than 500 professionals from 33 countries, all working on purpose, sustainability, social justice, DEI, or ESG. Last year, we stated that the only certainty for business would be change—and 2023 certainly brought a tremendous amount of that.
In 2024, while businesses and leaders must function in an exceedingly volatile world, purpose can be a source of constancy and even refuge. Authentic purpose serves as a north star, helping businesses navigate uncertainty by focusing on the Four Cs: colleagues, collaboration, communication, and courage. Together, those elements can help companies understand, impact, and talk about the issues affecting their business, their stakeholders, and society in 2024.
Those issues—which range from the Middle East conflict to the rise of AI—will continue to shape business and society in the year ahead. Understanding these issues is critical, so we asked Purpose Collaborative members to shed light on their implications for companies, employees, customers, and communities to help leaders navigate 2024 with purpose and persistence. Their insights are below.
Companies need to have an unrelenting focus on colleagues: Employees are (still) the #1 stakeholder for purpose
“Purpose starts from within,” says Sophia Story, founder, 3 Sided Cube. We say this year after year, and we don’t believe this will ever change—after all, 86% of employees believe that having meaning in their work is more important than ever. “How you treat your colleagues is arguably more important than the messages you share internally and externally,” says Story.
Dr. John Izzo of Izzo Associates notes that research shows people believe advertising “only slightly more than advice from a stranger.” What people do believe, he says, “are employees who tell your story of good.”
Employees should be at the center of purpose from day one to ensure authenticity and relevance. “When purpose is defined only by marketing, internal alignment is weak,” says Laura Probst, founder and chief strategist, Do Good: Make Money. “Conversely, when voices working at multiple levels of a company participate in purpose creation, there is a stronger sense of ownership and pride.”
This approach also helps organizations land on a purpose that “reaches across generations, because as Gen Z comes into the workforce alongside Boomers, a company’s purpose needs to be ambitious enough to capture everyone’s attention, while also being focused,” says Annie Longsworth, founder, Siren Agency.
Companies should also engage employees to determine the social issues material to stakeholders. This can help companies “tackle societal problems your brand can actually help with,” says Laurence Evans, CEO, Reputation Leaders. Evans says this approach is akin to “minding your own business. Let essential values guide your brand purpose—if you have a history as a family brand, strengthen your corporate family connection.”
Then, lean on employees to help find solutions to those societal issues. In other words, “pick a fight that not only affects society but also galvanizes your employees,” says Fabio Milnitzky, CEO, iN. “Strive to transform a significant social challenge into a business solution.”
Compelling communication requires finding your organization’s voice, and using it boldly
It’s important to note that none of the Four Cs exist in a vacuum; like purpose, these elements are highly interdependent. “To make any headway in this environment, corporate leaders will need to forge alignment between employees and external audiences around purpose,” says Chris Noble, partner, Matchfire. “A divided or dissonant message will get lost in all the other noise.”
Critically, clarity of purpose can help organizations navigate difficult conversations around world events—and this will be especially important in 2024. With ongoing conflict in the Middle East and Ukraine, plus election year turmoil, business leaders may desire to tread carefully. “Going into a big election year in a country that’s more politically divided than ever, and in a time of war, union strikes, and the destruction of our planet, it’s going to be nearly impossible for brands to keep their nose out of political-consumer tension,” says Stephanie Belsky, cofounder and CEO, Love of Good.
“It is very difficult to gain consumer attention for any single purpose when world events, such as Gaza and the Ukraine are dominating public awareness,” says Marcus Peterzell, CEO, and Amy Slotnick, SVP, Passion Point Collective. This is why “superficial claims or initiatives that are not authentic to a company will be rejected by consumers,” says Melissa Orozco, founder and CEO, Yulu PR. “Businesses need to showcase, in tangible outcomes, how they give back to their communities.”
Ultimately, it will be more important than ever for businesses to have a voice, but they should keep a few things in mind—notably, context and caution. “National and global issues are more layered than ever before, making it critical to do deep research, think creatively, and get comfortable with being uncomfortable,” says Silvie Snow-Thomas, president, Elle Communications.
While there’s a fine line between caution and complacency, “the demand to speak quickly and thoroughly has been rapidly increasing,” says Danielle Finck, founder and CEO, Elle Communications. “Actually, taking a moment to stop, listen and think deeply before acting can be a differentiator.”
Ultimately, you shouldn’t try to compel or convince consumers to engage with your brand around ESG issues, says Raphael Bemporad, founding partner, BBMG. “Instead we need to connect to people’s values and reframe the issue, so everyone can see themselves in a shared story where everyone benefits regardless of ideologies, age, race, or any other perceived differences.”
The only way forward is together—collaboration is quickly becoming a mandate for lasting change
Just as storytelling is most powerful when created and shared by multiple, diverse voices, so are solutions to social and environmental issues. “We can’t do this work alone,” says Belsky. “That’s why the Purpose Collaborative exists; to use our collective voices and powers to best serve a greater good. Brands are no different and the companies that want to succeed will understand that the only way to get to the top is to work together.”
Setting aside the need to solve complex issues like climate or inequality, companies can find solidarity in sharing ideas, outcomes, and innovations with peers. “As we saw this year, our thinking and actions have become divisive,” says Snow-Thomas. “You are either one side or the other, and there is little room for compromise or constructive conversation. Yet, there is little hope for progress if we can’t meet each other somewhere in the middle.”
“I believe the companies that are committed to real change will combine forces and resources to better measure their return on impact, invest in organizations that are serving as boots on the ground, and be accountable to their employees, customers, and the planet,” says Belsky.
Collaboration will be critical for a number of issues, but one does stand above the rest for its planetary impact: the climate crisis. In 2024, more companies will address the reality that “climate change is here and needs to be acted upon now,” says Orozco. “With this in mind, climate-prepared companies will add climate risk assessment and climate adaptation to their carbon emission reduction actions.”
Radical threats to humanity require radical interventions, which is why ideas like “degrowth—the idea of limiting economic growth to enable societies to live within planetary boundaries—have moved from a fringe discussion to the mainstream,” says Jessica Marati Radparvar, founder, Reconsidered.
Collaboration around the climate crisis will also shed greater light on intersectional issues like climate and human health. “As natural disasters increase and people experience growing health challenges related to declining air and water quality, the organizations at the forefront combating climate change through a health-focused lens will succeed,” says Snow-Thomas.
2024’s word of the year will be “courage,” because we’re all going to need it
In the face of near-constant change and uncertainty, “courage” may just be the leading theme for 2024. Companies will need it to stay true to their purpose while navigating wars, the impending 1.5 degree C benchmark, attacks on DEI, an election year, and a volatile economy.
For companies just starting on their purpose journey, this might feel like the “wrong” time to do so. “Balancing profit and purpose is a huge challenge and as the economic climate gets harder for all, there will be a greater demand for cost efficiency,” says Story. While a recession may not have materialized in 2023, the economy remains unstable, making purpose-related investments a tougher sell for many organizations. Unfortunately, this can mean that “purpose succumbs to bottom line pressures,” says Evans. “This is particularly true for companies with new, or weak purpose foundations. We will see the true purpose-led organizations persist, while those without true commitment will falter.”
Even companies with an established purpose can expect the next 12 months to serve as a pressure test for their commitments. “Brands will be steadfast in their commitments to purpose but constantly tested by political divisiveness, making authenticity and full support from the C-suite of utmost importance to their success in 2024,” says Laura Ferry, president and CEO, Good Company.
There may be people who will think you’re on the wrong side of an issue. “If you are courageous, living your values you will lose some people,” Izzo says, “but win the customers aligned with your values.”
We urge companies to press ahead, even if it means taking small steps toward uncovering an authentic purpose. It’s needed now more than ever. Don’t know where to begin? Then just “start the work,” said Rahul Chandran, managing partner, Upswing Solutions. “It’s okay if the pathway is murky. If you start with values, you’ll be closer to where you need to be by the time [your purpose] comes into focus—and what you’ve learned along the way will help you overcome future challenges.”
A willingness to take calculated risks is a core tenet of being a courageous organization. But organizations can help mitigate risk by “aligning business goals and measurable purpose metrics, so purpose is directly embedded into business outcomes,” says Robin Chung, cofounder and managing partner, 18 Coffees. For companies that already have a purpose in place, expect values and behaviors to be more deeply embedded into the enterprise over the year ahead.
Ultimately, “leaders will have to be courageous and deeply thoughtful about why an issue truly matters and is critical for their organization to act on,” says Probst.
“Don’t be afraid to stand for something,” adds Noble. “Organizations that win in 2024 will be the ones that show up on issues that reflect their corporate culture and core purpose.”
