Purpose Without Proof Is Just a Story: On Stakeholders and Measurement.

Published: 2024  |  Perspective updated: 2025

I believe purpose is one of the most powerful forces in business. But I also believe it is one of the most misused words in business — and that the gap between purpose as a genuine strategic commitment and purpose as a communications exercise is where most of the damage happens.

So I want to make two arguments here. First, that purpose genuinely matters to the three stakeholder groups that determine whether a business succeeds. And second, that purpose without measurement is not purpose at all — it is just a story you tell about yourself.

Why purpose matters to the three stakeholder groups

Every business ultimately depends on three groups: the people who buy from it, the people who work for it, and the people who invest in it. Purpose-driven organisations tend to perform better across all three.

On the customer side, 77% of global consumers are more likely to support companies with strong CSR programmes, and purpose-driven brands outperform their competitors in the stock market by 120%. Customers are not just passively preferring purpose-driven brands. They are actively advocating for them, forgiving them when things go wrong, and choosing them repeatedly in ways that compound over time.

On the employee side, 76% of employees prefer to work for companies with robust CSR programmes, and 88% of leaders say their impact strategies are future-proofing their business when it comes to talent acquisition and retention. Gen Z employees in particular are explicit: they expect employers to have a position on social problems and they will leave if that position feels hollow.

On the investor side, ESG integration has moved from optional to expected. 85% of global asset managers now take ESG factors into account when building portfolios. Purpose-aligned organisations are finding it easier to attract long-term capital — and those that cannot demonstrate genuine alignment are finding it harder.

A word on what purpose actually means

I want to be clear about something, because I think there is a tendency to hear “purpose-driven” and assume it means saving the rainforest or ending poverty.

Purpose does not have to be a grand philanthropic mission. It can simply be a clear and honest articulation of how your business adds value to the people it serves — in a way that allows them to thrive, and that has a net positive impact on the world beyond your balance sheet.

A financial services company whose purpose is to help people understand and take control of their financial lives is a purpose-driven organisation. A technology company that exists to make digital access available to people who cannot currently afford it is a purpose-driven organisation. The test is not the scale of the ambition. It is the authenticity and consistency of the commitment.

Why measurement is the non-negotiable

Telling your stakeholders you are purposeful without proving it is worse than saying nothing. It creates an expectation that, when unmet, produces distrust that is harder to recover from than no expectation at all.

Mars reported £88 million in social value in 2023, equating to £23,000 per employee. They did not just say they cared about their communities — they quantified what that care looked like in practice: 2,000 weeks of apprenticeships and training, 1,800 hours of volunteering, 23 school career events, 45 tonnes of plastic reduced. Each of these is a specific, verifiable claim.

Virgin Media O2 went further — they tangibly linked their social impact to their core business strategy. Providing free mobile data through the National Databank, rehoming smartphones through Community Calling, and investing in digital inclusion hubs are not peripheral CSR activities. They are extensions of what a connectivity company exists to do. The social impact and the commercial purpose are the same thing, expressed differently.

59% of UK companies are planning to boost investments in impact reporting — which suggests the direction of travel is right. The question is whether the measurement will be genuinely rigorous or will become another form of performance.

The difference is whether the measurement is designed to find out what is working and what is not — or whether it is designed to produce numbers that look good in a report. Genuine measurement requires the willingness to publish findings that are uncomfortable. That is the test.

You do not have to be Patagonia

Patagonia is often held up as the gold standard of purpose-driven business — and rightly so. But it is also sometimes used as an excuse by organisations who conclude that because they cannot be Patagonia, purpose is not for them.

That is the wrong conclusion. The question is not whether your purpose is as radical as giving away the company to fight climate change. The question is whether the purpose you do have is genuinely shaping your decisions — your product design, your customer communications, your investment priorities, your hiring.

If it is, measure it and say so. If it is not, the measurement will tell you that too.