The Power of Purpose-Driven Business

The first members meeting of 2025 in collaboration with Tamara Fenech, Purpose Driven Strategist and Founder of Cosie Studio, brought together passionate individuals and businesses to dig deeper into the meaning of Purpose for a business.

As Mrs Fenech explained, in today’s rapidly evolving business landscape, companies that define their purpose beyond mere profit generation are outperforming competitors. The shift towards purpose-driven business is not just a trend but a necessity for long-term sustainability, stakeholder engagement, and financial success.

What is Purpose?

The Purpose is the reason a company exists beyond making profits. Unlike traditional business models that focus solely on revenue, purpose-driven companies integrate sustainability, environmental, social, and governance (ESG) principles into their strategic decision-making. Purpose functions as a decision-making filter, ensuring that a company’s actions align with its core beliefs and create a positive impact.

As an example of Purpose, Mrs Fenech cited Simon Sinek’s Golden Circle, which emphasises starting with ‘WHY’—the deeper reason behind an organisation’s existence. Companies like Apple, inspired by Steve Jobs' vision, operate with a clear sense of purpose, fostering innovation and customer loyalty. The ‘HOW’ follows, detailing how a company upholds its values, and finally, the ‘WHAT’ represents the products or services it delivers.

A growing body of research supports the financial and reputational benefits of purpose-driven businesses:

• Consumer Preference: A 2020 study found that consumers are four times more likely to buy from purpose-driven brands and six times more likely to defend them in cases of public criticism.‍
• Stock Market Performance: Jump Associates’ 2023 study revealed that purpose-driven companies experienced an average compound annual growth rate of 13.6% in stock prices, compared to 3.7% for competitors.
• Brand Trust: According to Amazon Ads' 2023 study, 7 out of 10 consumers seek socially responsible brands.

During her presentation, Mrs Fenech also referred to McKinsey’s 5P Model. This provides a structured approach to embedding purpose into business strategy:

1. Portfolio Strategy and Products – Align offerings with purpose-driven goals.‍
2. People and Culture – Fostering an employee-centric, mission-driven work environment.
3. ‍Processes and Systems – Ensuring internal operations reflect the company’s purpose.‍
4. Performance Metrics – Developing new success measures beyond profit.‍
5. Positioning and Communication – Clearly articulating purpose to stakeholders.

During the meeting, it was also remarked how a genuine commitment to purpose requires leadership to allocate resources and embed purpose into the organisation’s DNA. Purpose must go beyond PR tactics—it should shape strategy, influence culture, and drive meaningful stakeholder relationships. Companies that fail to implement purpose authentically risk reputational damage and accusations of inauthenticity.

All in all, in a world where economic growth models are being redefined, purpose-driven businesses stand as beacons of sustainable and responsible growth. By integrating purpose into decision-making, businesses can build stronger relationships with stakeholders, drive innovation, and achieve long-term success. The transition from profit-centric to purpose-driven strategies is not just beneficial—it is imperative for the future of business.