©Corporate Social Responsibility and Purpose-Driven

Business and Consumption

Session 4
8th February 2023

Vera Herédia-Colaço
vcolaco@ucp.pt
Trimester 3 2022-2023
Disclaimer: all class materials are copyright, its share or distribution is not allowed without the author’s permission
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AGENDA

Purpose-driven business Cont.

READINGS
Center for Responsible Business (2020). Purpose-driven Business
Assignment 1 Presentations

Upload the presentation in moodle by Monday, February 13th by 8 PM.

7-mins presentation.
All group elements must be present, even if not presenting.
 Quick recap

SHARED VALUE
“Policies and operating practices that enhance the competitiveness of a
company while simultaneously advancing the economic, environmental,
and social conditions in the communities in which it operates.
Shared value creation focuses on identifying and expanding the
connections between societal, environmental, and economic progress”.

Porter and Kramer (2011) claim that Creating

Shared Value (CSV) was the logic way to look into CSR

SOURCE:
Center for Responsible Business (2020). Responsible Business Leadership and the Path Towards Purpose. URL
 SHARED VALUE CONTEXT

The year 2015 can be considered very important because it was

marked by the Paris Agreement and the launch of the 2030 Agenda
for Sustainable Development, including the adoption of seventeen
Sustainable Development Goals (SDGS).

which represent a “shared vision of humanity and a social

contract between the world’s leaders and the people”
(Ban, 2015).

SOURCE:
Center for Responsible Business (2020). Responsible Business Leadership and the Path Towards Purpose. URL
Companies/ brands with a strategic approach that
have a unifying Purpose and bring together the
debate between shareholder and stakeholder
primacy with a long-term view.
+
Treating profit as an outcome rather than the goal

Responsible Businesses
BLACKROCK’S CEO LETTERS
SOURCE:
Center for Responsible Business (2020). Responsible Business Leadership and the Path Towards Purpose. URL
Center for Responsible Business (2020). Purpose-driven BusinessURL
 In other words,

Responsible Business (and Leadership)

Companies that embrace sustainability at the core of their business

strategies to operate while sharing a common goal to advance society’s
well-being through a more inclusive view of ALL stakeholders’ interests
and through a …

PURPOSE-DRIVEN BUSINESS ORIENTATION

SOURCE:
Center for Responsible Business (2020). Responsible Business Leadership and the Path Towards Purpose. URL
Center for Responsible Business (2020). Purpose-driven BusinessURL
 The Components of Purpose-driven Business

What do these mean?

SOURCE: Center for Responsible Business (2020). Purpose-driven BusinessURL

 Purpose means “broader goals,”
“making a difference,” “improving
lives,” or “reducing harm””

(Hollensbe et al., 2014, p. 1228).

Source: Hollensbe, E., Wookey, C., Hickey, L., George, G., & Nichols, C. V. (2014). Organizations with Purpose.
Academy of Management Journal, 57(5), 1227–1234. https://doi.org/10.5465/AMJ.2014.4005
 Strategic Business Elements

Purpose outlines “why” you exist as a business, as a project,

as a brand, … the ideology of the company, its reason for
being (raison d’être).
 Many businesses confuse purpose, with vision, mission,
and values statements.

Strategic Business Elements

HOW – VALUES

WHAT – MISSION

WHERE – VISION
 Company/ Brand’s DNA
- the Basic Elements of Business Strategy (strategic business elements)
• Purpose - This is a statement about why the company exists.
• Vision – This is the company’s vision of the future; a compelling picture that motivates people to

want to be part of the company’s effort, to share in that vision, and where they want to end up:
“We want to be the Portugal’s most innovative school by 2023.”

• Mission – This is a statement that explains what the company does. It might outline specific
tactics or initiatives you have in mind for operational excellence.
• Values – Values are an attempt to define how employees should work together to achieve their
vision and mission. The values reflect how people treat each other and the environment we want
to create in order to do our best work.
(My) purpose: “I believe in living a happy and healthy life.”

(My) vision: to be a happy and healthy individual in 2023.

highlights where you want to end up. If you stick to your purpose, values, and mission, where
do you hope to be at the end of the next five years? For instance: “I want to be a happy and
healthy individual in 2023”

(My) mission: to be kind to others, engage in healthy habits…

defines what you need to do to reach your goals. Your mission might outline specific tactics or
initiatives you have in mind for operational excellence, product development, or brand
communications.

(My) values: kindness, simplicity

explain the ethics and behaviors you’ll use to get to your destination. Your values establish the
qualities you idealize as a company, such as innovation, inclusivity, or creativity.
Which element is this statement?
Mission

Empower students’ full range of intelligences -

cognitive, social, emotional, technological, … -
to help them become the shapers of a meaningful future
for themselves, for the world.
Which element is this statement?
purpose

To move higher education forward and prepare a new

generation of leaders able to drive positive change.
Which element is this statement?
Value

Cooperation – Working together effectively as an

organization and in teams to produce desired results.
Which element is this statement?
Vision
The leading higher education institution for the
development of impact-oriented education.
Purpose, Vision, Mission, Values

P = Why
V = Where
M = What
V = How

Source: https://academy.nobl.io/how-to-
define-your-purpose-vision-mission-values-
and-key-measures/
 Responsible Business

Stakeholder
Purpose Shared value Engagement
Sustainability
at the core
• Bringing different • Choose right • Business & society to • Not less importance
interests together with societal/environmental than financial
problem prosper together performance
one
aspirational • Position it at the • Butnot
reason for strategy sacrificing other
stakeholders interests
being • SDGs for money
identification
Sources: Center for Responsible Business And Leadership (2020), Porter & Kramer (2006, 2011), Business Roundtable (2019), Hollensbe et al. (2014 ),
EY Beacon Institute (2015)

29
engage
⑪
 Brand Purpose

Brand purpose = authenticity

Brand purpose is the meaning behind the brand’s existence,

it’s the OVERALL IDEOLOGY of the brand.
Outlines “why” you exist!
SO, WHAT IS A

?
 «A brand is the intangible sum of the properties,
name, package and price, its history, reputation and the
way it is promoted.

The brand is also defined by the

consumer’s impressions about the people who use
them; as well as their own personal experience».
(David Ogilvy in Strunck 2003, p. 137)
So, why is brand authenticity important?

The more authentic a brand, the better it is seen by audiences.

A company’s truthfulness and sincerity is a differential element

that influences its overall brand image.

authenticity
Examples of Brand Authenticity
 Passion and Purpose
“We are in Business to Save Our Home Planet! “
- Patagonia’s purpose statement

Patagonia is an example of an authentic

company that drives a global movement of people
using business as a force for good.

Note: Patagonia uses the mission statement as their Purpose statement.

 HOW?

Patagonia is in business to save our home planet. The brand’s

founders and owner are really committed to creating change and how
PURPOSE they live this every day.

This starts with product. We look at a product and try to build

functionality and durability, and repairability in mind.

Through our Worn Wear program, we offer to repair gear, and the
goal is to extend the lifetime of garments and keep them out of
landfill.
Tips to Boost Brand Authenticity

To progress towards authenticity, you must assume

that everyone in your target market is a skeptic.

Now, when you approach our branding with a skeptical

audience in mind it becomes clear that the way to win
their trust is through sincerity.
An honest brand is an authentic brand
Communicate your brand ideals

Brand ideals are the ultimate purpose of a brand that goes

deeper than the products they offer.

In order to come up with brand ideals, we need to pinpoint our

purpose. In what way does our brand have a higher calling?
What are some of its meaningful goals that go beyond profits?
 Be as transparent as possible

No matter how flawed the truth is, brand

transparency trumps secrecy. A great example of this
is Taco Bell’s meat. They didn’t cover up anything
when it came to their ingredients. They instead
admitted it was only 88% meat. The popular fast-
food restaurant then listed what went into the other
12%.
 CREATING A PURPOSE-DRIVEN BRAND

PURPOSE SDGs STAKEHOLDER IDENTIFICATION MARKETING INITIATIVES

 Purpose, Vision, Mission, Values

start with a
Purpose statement

P = Why
V = Where
M = What
V = How

Source: https://academy.nobl.io/how-to-define-your-purpose-vision-mission-values-and-key-measures/
 CREATING A PURPOSE-DRIVEN BRAND

PURPOSE SDGs STAKEHOLDER IDENTIFICATION MARKETING INITIATIVES

https://sustainabledevelopment.un.org/sdgs
 CREATING A PURPOSE-DRIVEN BRAND

PURPOSE SDGs STAKEHOLDER IDENTIFICATION MARKETING INITIATIVES

WHAT IS A STAKEHOLDER?

Any group or individual who can affect or is affected by the achievement of the
organization’s objectives (PRIMARY STAKEHOLDERS)

1. Managers
2.Employees
3.Customers
4.Investors
5.Shareholders
6.Suppliers

Then there are some more generic groups who are often included (SECONDARY STAKEHOLDERS)

Government
Special Interest Groups
Society at large
The local community
 CREATING A PURPOSE-DRIVEN BRAND

PURPOSE SDGs STAKEHOLDER IDENTIFICATION PURPOSE-DRIVEN

MARKETING INITIATIVES
 Patagonia’s #CrudeAwakening campaign (2015)

https://www.youtube.com/watch?v=P9owdkG1lbs&t=67s
Patagonia’s #CrudeAwakening campaign to protect coastlines from oil spills, which they launched
after a spill that resulted in 140,000 gallons of crude washing onto beaches just miles from the
company’s Southern California headquarters.

The campaign featured an activation where surfers, kayakers and paddleboarders traveled to an oil
platform five miles off the California coast to take a stand against offshore drilling. Due to the
advocacy of the brand and other members of the community, three new bills were signed into law.
ANOTHER EXAMPLE COMES FROM

Yum! Brands, Inc.

 ANOTHER EXAMPLE COMES FROM

Yum! Brands, Inc., operating restaurant brands – KFC, Pizza Hut and Taco Bell ,

global leaders of the chicken, pizza and Mexican-style food categories, with over 48,000 restaurants in
more than 145 countries.
 Yum! Brands’ Recipe for Good

Yum! Brands’ Recipe for Good — our updated Global Citizenship & Sustainability Strategy and
public commitments concerning our food, planet and people.

Purpose: our growing efforts to listen and engage more intently with our stakeholders on priority
issues, such as:

Food: We're simplifying our ingredients in different ways, for example, by removing artificial
flavors, colors and trans fat. We are also providing more balanced options on our brands’ menus,
including meal items with less sodium and calories.

Planet: We’re making strides in our sustainable sourcing practices and in our restaurant operations
including food donation, recycling and energy and water conservation.

People: We continue to believe in ALL people, from investing in programs that develop employee
leaders to fostering a workplace that is inclusive. In our communities, strategic partnerships help
us advance our priorities of hunger relief, literacy and youth education.
Now, select the main SDGs covered by the Yum! Brands, Inc.

PURPOSE

(2-3) SDGs (log into https://sustainabledevelopment.un.org/sdgs)

STAKEHOLDERS

INITIATIVES
 Yum! Brands’ Recipe for Good

Yum! Brands’ Recipe for Good — our updated Global Citizenship & Sustainability Strategy and
public commitments concerning our food, planet and people.

Purpose: our growing efforts to listen and engage more intently with our stakeholders on priority
issues, such as: SDGs

Food: We're simplifying our ingredients in different ways, for example, by removing artificial
12
flavors, colors and trans fat. We are also providing more balanced options on our brands’ menus,
including meal items with less sodium and calories.

Planet: We’re making strides in our sustainable sourcing practices and in our restaurant,
operations including food donation, recycling and energy and water conservation. 2, 6, 7, 12, 13

People: We continue to believe in ALL people, from investing in programs that develop employee
leaders to fostering a workplace that is inclusive. In our communities, strategic partnerships help
us advance our priorities of hunger relief, literacy and youth education. 1, 2, 4, 8, 10, 17
Looking to make changes to a more sustainable
lifestyle, CONSUMERS NOW seek out companies
and associated brands companies that stand for
a purpose, they personally identify with one (or
more) that reflects their values and beliefs,

the purpose driven brand is the one that

earns the loyalty of its customers.
 https://www.unilever.com/news/press-releases/2019/unilevers-
purpose-led-brands-outperform.html
Vera Herédia Colaço