The Perpetual Value of Purpose Over Politics

Diverse Barbie Toys for sale in the Supermarket Stand. Barbie is a fashion doll manufactured by the American toy company Mattel, Inc. and launched in March 1959. Minsk, Belarus, September 16, 2023

With another United States election only weeks away fear, uncertainty and doubt are at a fever pitch, and scores of headlines have asked if the influence of entrepreneurs, celebrities and activists like Elon Musk, Taylor Swift and Robby Starbuck is bad for our nation and our economy.

While influence can be used in good and bad ways, there is no doubt that more brands are getting caught in the crossfire of political ideologies that pit Americans against one another. That's why it continues to be important for companies and organizations to review and reinforce a commitment to their brand ideals and values.

Here are three very apolitical reasons why now, and always, is the perfect time for brands to double down on purpose

Identifying and doubling down on brand purpose allows companies to see more clearly and grow.

Think of Mattel and Barbie. Mattel’s brand purpose is to empower generations to explore childhood and reach their full potential. Mattel's mission is to create innovative products and experiences that inspire, entertain, and develop children through play. In alignment with that  purpose, the brand aims to create a positive social impact by supporting diverse, equitable, and inclusive communities, integrating sustainable materials into their products, reducing environmental impact, promoting ethical sourcing practices and ensuring worker health and safety.

Has doubling down on this purpose worked for the brand? Without a doubt, as recently cited in Harvard Business Review, Mattel’s purpose-driven inclusion strategy coincided with a period of significant growth in which Barbie revenues increased 63% from 2015 to 2022—even before the boost from the film the brand released in 2023.

Are other brands paying attention? Even better—as the article details—they are taking action! In the case of DEI trade organization BRIDGE’s members, several brands have begun employing the IMAX program to measure what they treasure—their inclusivity as a driver of business growth. Stay tuned on that one, as these are the champions leading a more inclusive, high-growth future for the brands they steward and consumers and communities they serve.  It’s not a moral imperative. It’s a business imperative. 

Younger generations, your next best customers, are watching and care more about your purpose than your brand.

This is substantiated by consumption trends, as well as strong research. As cited by Edelman, more so than any previous generation, Gen Z places great importance on brand purpose. While the construct of the belief-driven buyer is not necessarily new, Gen Z has taken it to staggeringly new levels with 92% stating that they need to share values with a brand to buy from it.

As McKinsey points out, Gen Z often chooses brands that have a strong story or purpose, as well as those committed to green practices. In one study, 73 percent of Gen Z reported trying to purchase from companies they consider ethical, and nine out of ten believe that companies have a responsibility to address environmental and social issues. However, they can also tell when a brand is just paying lip service and isn’t backing up diversity or sustainability claims with real change. 

Purpose fosters brands built to last.

Today, Patagonia continues to exemplify this point. Time and time again, Patagonia founder Yvon Chouinard has shown the world how being a responsible steward for the planet and its people aligns with the company’s increasing growth and value. In another McKinsey article the founder offered pragmatic words about why his company’s commitment to its purpose actually includes not overgrowing its brand.

“We have to be cautious about growing too big. A company doesn’t last 100 years by chasing endless growth. There’s an ideal size for every business and, when companies outgrow that, they die. We know we have to be intentional in our growth to be around for another 50 years, so we’re focused on longevity, not expansion.” 

While recent explorations of Patagonia have led the New York Times and others to ask if Patagonia’s most recent moves have shifted from purpose to political, based on the company’s contributions, one might argue that its purpose drove its political. 

Ultimately, regardless of political season, nothing drives more value than a strong return on purpose, as it is the only corporate metric that pays off every stakeholder. 

Lana McGilvray is founder and CEO of Purpose Worldwide and the co-chair of the ANA’s Council for Brand Purpose.