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Purpose & ESG Posted 05 May 2021

There are three Ps, three Cs and an ESG in Purpose

I haven’t met a business leader who needs convincing of the need for Purpose lately. Have you? Covid-19 has undoubtedly accelerated demand for organisations to live their purpose through action which is helping the world, and many have stepped up to the plate.

Brew Dog02 There are three Ps three Cs and an ESG in Purpose Lansons Insights

Photo: by BrewDog, featured in the webinar with Robert Half 'BrewDog and the power of ESG for better business performance'

But this shift has been coming for decades.

It’s already been three years since Larry Fink wrote "A sense of purpose" and an amazing 12 years since Simon Sinek first published “Start with Why”.

OK then Simon, I will.

If we all accept the importance of Purpose – to customers, employees, and shareholders; to business success; and to sleeping well at night - why are so many organisations still struggling to articulate, then live theirs?

Well, because it’s hard. Partly because we’ve smothered it in jargon.

Your purpose is your Why. Your North Star. It is your Guiding Light and your Governing Principle. It is distinct from your mission, different from your vision and definitely not a narrative. It is authentic and true although aspirational, of course. And it aligns what is required to create a profitable, successful organisation, with the needs of the world. Oh, and it’s sort of the same, but not quite the same, as your ESG strategy / framework / programme / proposition.

Ohhhhhhh. That’s clear then.

But, as my Granny would have said, if something is worth having…

Lego01 There are three Ps three Cs and an ESG in Purpose Lansons Insights

Ask LEGO, who exist “To inspire and develop the builders of tomorrow”.

Yes. They. Do.

They always have. It’s simple and it’s undeniable. Their product is the epitome of their Purpose, so why they’re here and what they do are completely matched. And that translates to massive success. LEGO has been consistently named in Forbes top 10 most powerful brands in the world for years.

However, while they make a great product (although as a mother of three LEGO-loving boys, PLEASE can someone make stepping bare foot on a LEGO brick hurt less? *), let’s be honest. There are far cheaper ‘knock offs’, widely available, that aren’t bad quality. Nevertheless, the LEGO brand preference (nay, obsession), prevails. Simon says, why?

Purpose. Everyone who buys LEGO, and everyone who works at LEGO, understands – and believes in the LEGO difference. In LEGO we trust.

Because LEGO LIVES its Purpose. Their culture is founded on the values of creativity, imagination, fun, learning, quality and care. Sounds brilliant, right? No wonder their employees are inspired to come up with great new ideas and deliver them with perfection. No wonder LEGO never gets boring (I can build a mean velociraptor cage, by the way). The whole operations of the company have been designed to ensure quality, and timely delivery of high-quality product and service, so they can deliver on their Purpose.

It’s the definition of walking the walk.

Lego02 There are three Ps three Cs and an ESG in Purpose Lansons Insights
Lego03 There are three Ps three Cs and an ESG in Purpose Lansons Insights

So, there is the nub of it. Your Purpose is WHY you exist.

But being purposeful comes down to your HOW.

How you behave. How you make decisions. How you prioritise. How you impact the world.

Look at BrewDog.

Seriously LOOK at BrewDog (all hail!). Just 10 years old and, as they point out in their manifesto, they are 1/2500th of the size of their biggest competitor. But, boy, are they making an impact. Offering a rather beautiful symmetry, they are also one of just 2,500 certified B-Corps in the world. Contented sigh…

(ps. if you don’t follow the CEO and Co-Founder, James Watt on LinkedIn, please do – it’s a masterclass in communication and brand building).

BrewDog’s Purpose is: “To revolutionise the beer industry and completely redefine British beer-drinking culture”.

Well, they’re certainly doing that (have you SEEN the pictures of their new rooftop bar on the Las Vegas strip, complete with a swimming pool, an urban forest, secret event space, retro game zone, and a beer museum?!).

They are, in their own words (because, frankly, their tone of voice is more fun than mine) …

“…the fastest growing Food & Drinks company in the UK, one of the Times Top 100 Best Employers, and breaking into international markets like a shark on steroids.”

Safe to say it’s going well.

But interestingly, BrewDog’s Purpose statement doesn’t (at least not explicitly) speak to their social impact. And yet, that is fundamental to how they run their business. In their ‘Blueprint’ they state:

“We are determined to show that craft beer can be a force for good in the world and build a completely new type of business. A business that is part community owned, a business that gives back, a business that is open and transparent and a business that looks after its people incredibly well.”

Brew Dog01 There are three Ps three Cs and an ESG in Purpose Lansons Insights

Photo: by BrewDog, featured by James Watt on twitter:

As manufacturers of the world’s first carbon negative beer (pause for applause) - FYI, they are currently running a survey to name their next carbon negative pale ale, if you fancy voting - and with a live offer for anyone to apply to buy shares in the business, they are making good on their promise.

Fundamentally, BrewDog have understood that their Purpose statement needs to reflect why they are genuinely here. It’s all about the beer. But HOW they do beer, is what makes all the difference.

In building and growing a successful and sustainable beer business, they skilfully and determinedly combine the three Ps of Purpose:

  • Planet (they plant trees in their own forest)
  • People (they share 10% of profits equally amongst employees, and their BrewDog Foundation gives away £1m a year to charitable causes)
  • Profit (they turned a profit in 2020, despite revenues being down during the pandemic, and while investing heavily in growth)

The last of these is important, because some struggle to accept that Profit belongs in the same room as Purpose. But it really does. As the World Economic Forum pointed out last year, organisations making profit by SOLVING problems is how positive change happens. It’s when they profit from CAUSING problems that we have an issue.

There is nothing wrong with Profit. It can be an enabler of positive action and change. And it goes to the heart of Purpose. Again, ask LEGO. They make a profit. What matters is HOW they do it.

Which brings us, full circle, to ESG.

If Purpose is WHY, ESG dictates HOW Purpose is realised i.e. the behaviours and actions that benefit the Environment and Society, while ensuring an organisation is well Governed. Ooh, there are the three Ps again (Planet, People, Profit).

Turns out Simon Sinek was right.

WHY, HOW, WHAT are all critical parts of creating an authentic, sustainable, and impactful brand. But, while it’s important to spend proper time on the WHY – and of course, you need to make sure WHAT you do delivers on the promise – HOW is the secret sauce that turns Purpose from pretty words on a wall, to a “blueprint” for positive action.

The world is sold on the need for Purpose.

The challenge for organisations now is HOW to bridge the “purpose gap” (McKinsey). HOW to get from the words to the deeds. From the aspiration to the reality. From the vision to the experience.

LEGO and BrewDog have it nailed. Yes, I’m a huge fan (hmm, LEGO and Craft Beer – what does that say about me!?). Although, luckily for me, I’m rather proud of where I work too.

One of the most satisfying things I get to do professionally, is collaborating with organisations to define their Purpose and then, make it real – for their Colleagues, Customers, and their Communities (both large and small). Ooh, look… three Cs!

So, there we have it. Purpose is WHY. But critically, it is also HOW. It is synonymous with ESG (“the three Ps”) and, done well, it will measurably benefit your three Cs.

Hey, who wants to make a funky Purpose anagram out of ESGPPPCCC?

I bet BrewDog could…

* For other parents out there, I can not recommend highly enough a “play and go toy storage bag” (other brands are available). It’ll change your life…

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Claire Southeard Lansons 475x414 2021 03 29 223822

Claire Southeard

Head of Marketing Communications

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