What do you stand for?

I’ve quoted some powerful stats from books like Firms of Endearment, which compares purpose-driven companies like Southwest Airlines, Whole Foods and J&J, to Jim Collins’ “Good to Great” companies (like Kimberly-Clark and Kroger):

• Over 3 years: Firms of Endearment delivered a 73% return to investors; Good-to-Greats delivered 75%
• Over 5 years: FoEs delivered a 128% return to investors; GtoGs delivered 77%
• Over 10 years: FoEs delivered a 1,026% return to investors; GtoGs delivered 331%

Our 2015 Eco Pulse study bears out that purpose-driven companies and brands are better positioned with consumers than those who aren’t:

• 59% of Americans say a company’s corporate social responsibility activities impact their purchase decisions.
• 67% say a company’s stance on employee wages and working conditions also impacts their purchase decisions.
• 33% say they’ve chosen one product over another or stopped purchasing a product based on the environmental record of its manufacturer – and 75% could name a specific brand.

Finally, there have been many studies done about the power of purpose in attracting, retaining and engaging employees. In fact, Monster did a poll several years ago that indicated 92% of us want to work at an environmentally responsible company. It makes sense … who wants to work for a company that’s only in it for themselves? And who wants to buy from them?

So there are several reasons to believe that when companies authentically commit to a purpose and make business decisions related to that purpose, it results in tangible business value.

Yet my observation is that it’s a newsworthy rarity when a big company decides to put its money where its values are, risking big to put a stake in the ground about what they stand for. In fact, the only two examples I can think of in the last few years are CVS and REI. As you probably know, CVS put its stake in the ground about health, turning away $2 billion in cigarette sales. REI closed its stores on Black Friday and started the #optoutside movement to better live in alignment with its values and purpose.

According to digital analytics firm SimilarWeb, REI actually experienced a 10% bump in online traffic on Thanksgiving, and a 26% rise on Black Friday. CVS’ road has been a bit rockier, but I’m guessing it takes a while to make up $2 billion in revenue.

As you head toward the end of the year and have a little time for reflection, I encourage you to think about what your company stands for, really. Is it meaningful? Is it worth your employees getting out of bed for? Is it a reason for customers to buy from you over and over again? If not, think about how you could shift. And then think about how you could make a meaningful, public move to align your actions with your purpose. It will pay dividends – not just on your P&L statement, but in your psyche.

From everyone at Shelton Group, and from all our families to yours, have a wonderful, restful, happy holiday season!