Over the years, corporate purpose has transformed from a purely regulatory-driven disclosure to a compelling articulation of why a business exists. In fact it impacts a company’s ability to retain current employees, attract new talent, and resonate with customers and build a social licence to operate. Investors are also increasingly aware that commercial success and corporate purpose are inherently linked.
Ultimately, a clear sense of purpose acts as an integral part of the corporate identity and a key differentiator that makes a company stand out from competitors and successful in the eyes of stakeholders. For something that speaks to almost all types of stakeholders, purpose can be effectively articulated and explained on websites by leveraging cutting-edge digital and creative features.
Unlike last year that saw a stagnation in purpose disclosure, we have seen a substantial increase in the number of companies articulating their purpose on corporate websites this year, clearly evidencing that purpose moved up the agenda for the majority of them (71% compared to 59% in 2018). 40% of companies are also making sure their purpose statements are easily accessible by placing them in prominent areas of the website, such as the homepage and a dedicated page.
For those that have a dedicated purpose page, our website analytics data reveals that it is one of the most frequently viewed pages for all audiences across investors, employees and sustainability audiences in nearly 70% of the reviewed websites.
While the data indicates that purpose is becoming more established and communicated beyond annual reports, websites still lag behind in terms of providing additional narrative to put into a context. In fact, only about 20% go beyond a statement to include leadership content to reinforce their purpose. Also, merely 40% of companies provide a link between purpose and strategy on the website, as opposed to around half in the annual report. Inconsistency is still a common mistake for many corporates which could eventually hinder the authenticity and trustworthiness of purpose.
On the other hand, we are starting to see an emerging trend in the use of videos to bring purpose narrative to life. Going forward, we expect more companies to harness the power of digital communication to effectively evidence the company’s purposeful mind-set that is deeply embedded across the organisation and guides their actions and behaviours, rather than a superficial marketing slogan.
Black Sun is a global stakeholder communications company with offices in London and Singapore. We are united by a common purpose of making businesses more valued by their stakeholders. We are powered by a unique mix of strategic insight, creative inspiration and technology advantage, and help businesses communicate authentically how they deliver value to their stakeholders. We believe that inspiring strategic communications can spark positive change and drive long-term, sustainable performance.
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