From for-profit to for-purpose: the importance of impact branding

July 29, 2024

An impact brand, put simply, is a force for good. It’s a sustainable business model that drives profitability by integrating purpose into the very core of its operations, striving to make a positive difference for both people and the planet. An impact brand focuses on creating a “handprint” rather than just reducing a “footprint.”

This isn’t about surface-level initiatives or ticking boxes. It’s about weaving purpose into the very fabric of a company, ensuring that every action aligns with a commitment to making the world a better place.

Embracing the for-purpose movement

It’s been quite a journey for us at Taylor & Grace. From defining our purpose to making significant strides toward impactful actions, we’re proud to say we’re now B Corp certified and collaborating with some incredibly inspiring purpose-led brands. As a for-purpose brand agency, we believe that every business has the responsibility to become a brand for good. Shifting from a for-profit to a for-purpose business model does more than contribute to a better world—although, that alone does make for a compelling incentive. It also enhances brand reputation, drives commercial outcomes and allows businesses to meet the demands of multiple stakeholders. Think customers, employees, investors, board members and the community. Businesses today are facing unprecedented scrutiny from these stakeholders about pressing societal issues. With declining trust in governments and media, businesses are now expected to step in and fill the gaps left by government inaction. According to the Edelman Trust Barometer’s global research, 86% of employees believe it’s important for CEOs to speak out on big societal issues like inequality, diversity and the environment. 78% think CEOs should take the lead on societal change rather than wait for government intervention.

Silence isn’t always golden: avoiding the greenhushing trap

Ignoring this shift towards impact branding can leave businesses vulnerable. Many organisations fall into the trap of ‘greenhushing’, aka reducing their external communications about their environmental goals due to fear of scrutiny. Yet, the data is clear—businesses that are open about their sustainability efforts build stronger relationships and trust with their stakeholders.

According to the South Pole’s 2023/2024 Net Zero Report, 81% of companies believe that sharing their net zero strategies is crucial for commercial success, even though many are hesitant to do so. This hesitation, or tendency to greenhush, is a missed opportunity to engage with a supportive and increasingly environmentally conscious audience.

Aligning your purpose with the conscious consumer

Customer demand is a significant driver of this shift toward business for good. Nearly half of the businesses surveyed in South Pole’s report pursue their net zero targets to meet the expectations of their customers.

Consumers today want to support brands that align with their values and are willing to pay a premium for products and services that reflect a commitment to social and environmental responsibility. By aligning your brand with these values, you don’t just meet the demands of your customers—you turn them into raving fans who are delighted to purchase from and advocate for your brand.

Embedding your purpose in the workplace

Transitioning to an impact brand also means creating a purpose-led workplace culture. Employees today seek purpose in their work. They want to feel that their contributions matter and that they are part of something bigger than themselves. By committing to impactful practices, you can create a workplace that attracts and retains top talent, fostering a dedicated and passionate team.

When your employees live and breathe your purpose, it cultivates meaningful engagement and a sense of belonging, driving both personal fulfilment and organisational success.

When purpose and profit intersect

Being an impact brand has significant commercial benefits. By strategically incorporating your purpose and sustainability efforts into your brand communications, you differentiate your brand in a crowded market. Transparency builds trust and loyalty among customers and investors who share your values.

This strategic alignment of purpose and profit not only drives growth, but also positions your brand as a leader in responsible business practices.

Daring to do things differently

Being an impact brand means being adaptable and willing to innovate. It encourages companies to think creatively about how to increase environmental handprint and contribute positively to society. This might involve rethinking your supply chain, investing in sustainable technologies or developing products that truly make a difference.

For smaller organisations, this could mean reconsidering who you partner with, looking for opportunities to collaborate or sharing the load with businesses on the same purpose-led journey. Ultimately, it’s about being a champion for your cause and becoming an organisation that leads by example.

Forming impact brand allies

Most importantly, the journey to becoming an impact brand is ongoing. Striving to do better every day is key, and what better way to achieve this than by partnering with like-minded changemakers?

The team at Taylor & Grace is fiercely passionate about making a difference. Guided by strategic insight, we support businesses in defining and articulating their purpose to leverage the benefits of impact branding. Whether you’re just starting out or looking to deepen your impact, we can help you share your purpose with the world and maximise your positive influence.

Join the movement

Ready to transform your business into an impact brand? Reach out to learn how we can help you integrate purpose into your brand strategy and achieve long-lasting success.

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