What is Purpose-Washing?
Have you heard of the term greenwashing?
It essentially refers to companies that mislead or overrepresent their products or brand as being environmentally friendly rather than actually doing the hard work to ensure that the company itself is sustainable. While some greenwashing is unintentional and results from a lack of knowledge about what sustainability truly is, it can also be intentionally planned as a marketing or public relations ploy.Unfortunately, this has misdirected willing consumers down the wrong path in the recent past, which has led to a healthy skepticism towards many company efforts claiming to improve the environment in the market. Purpose-Washing Defined
In much the same vein as greenwashing, there is also a term used to describe the misuse of ‘purpose’ for commercial gain called ‘purpose-washing’. It stands to reason - just because a company has a purpose statement that they are doing good in the world, or a linkage to their brand, it doesn’t mean they’re living their purpose. An investment in purpose can actually do more harm than good to a brand if it’s not brought to life authentically - and consumers are increasingly demanding truth and transparency on the back story of a company when claims of ‘purpose’ and “social impact” are used in marketing. This is very clear from the Edelman Trust Barometer, which states that consumers are seeking to closely align with brands by first reviewing the companies that own them to ensure their purpose is genuine before purchasing from them. The study also found that 40% of middle-income consumers and 50% of high-income consumers said they would no longer buy from a brand because they do not trust the company that owns it.
Consumers vs. Marketers - The Purpose Divide
A report just released by Razorfish and Vice Media show similar findings, stating there is also a broad disconnect between what marketers and consumers perceive as delivering to their purpose. In fact, only 43% of consumers truly believe brands are authentically living their stated purpose - in comparison to a whopping 83% of marketers.To avoid the perception from savvy consumers of ‘purpose-washing’, companies need to start with their ‘why’ and ensure that purpose is at the core of their values and business model. Ensuring Your Company & Brand Purpose Are Aligned
The ‘purpose divide’ as such is often driven by confusion within a company of the difference between company purpose and brand purpose. These are two different concepts. Put simply, they can be interpreted in two ways - either to represent the underlying motive behind why a brand sells its products and services, or it can be the platform that articulates why the company exists in the world.Brand purpose, as it is fundamentally anchored in the consumer, is therefore defined as the motive; while company purpose or a purpose-driven company, is intended to address the needs more broadly of all its stakeholders (eg. employees, suppliers, partners, customers, society), and is central and core to all decision making.In some instances brand purpose can become siloed from other important facets of the company. The risk with this approach is that when purpose is managed in silos, its meaning can be confused or, at worst, it can appear disingenuous.This does not resonate well with consumers.Since the pandemic, consumers have become much more savvy in checking the company behind the brand to ensure the integrity and consistency of their purpose. They don’t want marketing campaign jargon, they want to purchase from companies who solve societal issues or stand for a greater good - or a higher purpose. 
How To Reduce Your Risk of Purpose Washing
If purpose can clearly and transparently be illustrated at the core of a company’s reason for existence, rather than just embodied in their brand, this presents an enormous opportunity for accelerated company growth as a recent McKinsey survey has found. It also reduces the risk of being perceived as purpose washer.References:
https://medium.com/disruptive-design/what-is-greenwashing-how-to-spot-it-and-stop-it-c44f3d130d5
https://www.campaignasia.com/article/consumers-are-growing-wary-of-purpose-washing-study/473981
https://carolyntate.co/purpose-washing-is-it-the-new-green-washing/
https://www.theworddepot.com.au/blog/purpose-brands-driving-change-are-trusted-more
https://www.campaignasia.com/article/consumers-are-growing-wary-of-purpose-washing-study/473981
https://www.theworddepot.com.au/blog/whats-the-difference-between-brand-purpose-and-organisational-purpose
https://www.theworddepot.com.au/blog/purpose-driving-the-growth-agenda
SEPTEMBER 13, 2023
