This is a critical time where corporate purpose must be translated into action. A higher purpose is not merely about economic exchanges but reflects something more aspirational. Today, companies are under intense scrutiny regarding how they respond to the pandemic, and the world expects them to act with empathy and purpose and have a real and positive impact on the world.
Not only do purpose-led organizations play a critical role in supporting relief efforts and driving economic and humanitarian recovery, but also in supporting social justice movements. For example, the current situation brings more attention to the need to be purposeful. Many organizations across the world expressed their solidarity with the black community to fight injustice and racism Purpose-driven organizations are focused on multiple stakeholders, from employees to communities.
Capgemini Research Institute wanted to understand the consumer perspective in particular, especially because there is a real business risk of losing customers if organizations do not positively contribute. How exactly is purpose viewed by consumers in the current crisis? Do consumers expect organizations to contribute to COVID-19 relief efforts and will they reward organizations that do? Does a positive contribution to today’s crisis lead to increased engagement and loyalty?
To answer these questions, Capgemini Research Institute surveyed consumers across seven countries – France, Germany, India, Italy, Spain, the United Kingdom, and the United States – at the end of May. It also analyzed social media engagement for over 1.5 million conversations for a sample of 19 companies that made notable positive contributions to COVID-19 relief efforts over the course of March, April, and early May.
The research note “Why purpose-led organizations are winning consumers’ hearts” explores the following key findings:
1. Consumers have high expectations of what it means to be purpose-led.
2. Consumers will reward organizations that contribute during this health crisis.
3. Consistency in how companies live their purpose is critical.
The Key India findings from the research note:
79% of Indian consumers agree that companies have a larger role to play in society than just looking after their self-interests compared to global average of 78% of Consumer
81 % of Indian consumer agree that private organizations can do more than they are currently doing to help society and humanity at large compared to 74% of global consumers, 66% of consumers in United States Of America, 73% of Consumers in United Kingdom
79% of Indian consumers believe that this health crisis made them realize that governments need the help of private organizations to resolve societal issues compared to 69% of global consumers
79% of Indian consumers expect private organizations to give back to society when there is a major crisis such as the current pandemic compared to 69% of global consumers
74% of Indian consumers believe that companies primary responsibility is taking care of its employees during pandemic compared to 86% of consumers globally
64% of Indian consumers believe that companies should find creative ways of repurposing their own expertise (e.g., offering existing or creating new technology solutions) while giving back compared to 54% of global consumers
66% of Indian consumers believe that company should monetarily contribute compared to 44% of global consumers
90 % of Indian consumers will purchase products and services from companies that give back to society during this health crisis compared to 75% of global consumers
Once the pandemic is over 10% of Indian consumers will not change purchasing preferences compared to 25% of global consumers
82% of Indian consumers feel a sense of gratitude for companies that give back to society during this health crisis compared to 75% of global consumers
82% of Indian consumers feel a sense of trust for companies that give back to society during this health crisis compared to 73% of global consumers
84% of Indian consumers feel a sense of pride for companies that give back to society during this health crisis compared to 72% of global consumers
84% of Indian consumer feel a sense of loyalty for companies that give back to society during this health crisis compared to 69% of global consumers
Action point for organizations:
• Hold yourself accountable to your purpose Ensuring a consistently executed purpose will drive consumer engagement and hopefully positive perceptions of your company. Multiple organizations have been guilty of poorly timed, insensitive, or inadequate responses to the current crisis leading to a negative consumer backlash.
Embedding purpose into responses and actions by companies will be key drivers. Even those organizations that have responded well to the current crisis, need to think about how they can sustain new purpose-driven behaviors in the post-COVID-19 era. For example, how might an organization continue to reduce travel and associated emissions, retain focus on contributing to their communities, and ensure that they live with purpose consistently in the future? Companies should assess and measure these new behaviors and actions on an ongoing basis. As the head of digital customer experience at a US restaurant chain says, “Our company has been around for a long time. We are deeply connected to the communities we serve. We try to remain genuine and always listen to our customers and do the things they want us to do. We don’t always get it right, but being consistent, genuine, and trustworthy helps emotionally connect with customers.”
• Build a purpose-driven culture to ensure consistency Purpose cannot solely be driven by those in formal leadership positions, even though they are the ones responsible for consistently messaging and communicating the organization’s purpose and living the purpose through their actions. Organizations need to ensure that a purposedriven culture is embedded throughout the enterprise including all levels of the organization, and that the culture is authentic and connected to the company’s core values. An embedded purpose-led culture will help the organization be more consistent in how it lives its purpose. Employees need to drive purpose within the broader organization as well as within their daily actions, which includes how they contribute to society and how they interact with their internal and external stakeholders. Increasingly, consumers are moving to digital channels for their interactions with companies and brands. This increases the need for sound ethics and building trust in how consumer data is protected, and privacy is handled. Organizations, in driving a purposeled culture, must enable employees to ensure such sensitivities are dealt with ethically.
Mahindra and Mahindra, whose purpose is to “challenge conventional thinking and innovatively use resources to drive positive change in the lives of stakeholders and communities across the world, to enable them to rise,” demonstrated ways in which employees helped drive purpose during the COVID-19 crisis. The company delivered 250,000 face shields and 350,000 face masks to frontline staff. This was possible, because “each person, each employee, decided to devote to the larger cause of working for the community.”
Conclusion
Being purposeful and playing a wider role in society is increasingly important to consumers and, as our research reveals, even more so in the current crisis. Consumers
value honesty, integrity, and authenticity in organizations’ responses. And they will reward organizations with their loyalty and with their purchases for those that give back to society. In times of uncertainty, people often turn to those they know and trust and feel close to heart. With purpose, organizations can address these sentiments and move to that coveted, position which brings great responsibility. This pandemic age will be remembered as the time that purposeled organizations really turned purpose “statements” into impactful, meaningful, and life-changing actions.