Purpose and sustainability strategy: IKEA changes the way we live

15. Feb 2022

Medinge Group study: What factors determine core purpose?

Medinge Group conducted a research study in January 2022 to identify companies around the world that are addressing social and environmental issues and surveyed senior executives at these companies. The goal of the management study was to find out how companies can do the right thing and be profitable in the process. This allowed us to better understand the role of corporate purpose, the influence of various stakeholders, the challenges of implementation, and the importance of brands with a conscience.

Our research has found that there are multiple ways to discover a brand’s core purpose, and that the drivers of an individual brand’s core purpose are highly dependent on corporate structure, stakeholder influence, and industry.

How companies can do the right thing and be profitable

About the Medinge study

Five influencing factors

Employees and applicants and their need for goal-oriented work

The pressure on companies from existing and new employees is increasing. The ability to clearly and honestly demonstrate that you care about people and the planet can be the deciding factor when it comes to deciding to stay with a company or apply for a job.

You can literally feel that pressure is being built internally and that employee voice is a strong driver for the core purpose.

Founder

The core purpose can be driven by the founding person or persons whose values are so strong that they become an integral part of the brand’s business. In these cases, caring for people and the planet, like profit, is not just an afterthought, a project or a new department, but is rooted in the core of the company.

Investors

If we now take a look beyond the brand and the company, the influence of external stakeholders also becomes increasingly clear. Investors are interested in understanding a company’s impact, especially as it relates to environmental issues.

Competitors and suppliers

Not surprisingly, a shift toward a greater focus on people and planet within one company can influence or even force the actions of other brands, especially if they are business customers or part of the same delivery ecosystem.

Customers

Finally, although to a lesser extent, there is also pressure from individual consumers, according to this study.

Overall, while consumers have greater access to information and to platforms where they can put pressure on brands, most consumers don’t yet seem to be really using their influence.

People from across the company really want their company […] to be part of the solution to major global challenges.