Businesses with impact

DRIVERS: COMPANIES THAT LEAD WITH PURPOSE CONSISTENTLY OUTPERFORM THEIR PEERS

- Jeremy Lang

Picture: iStock

(iStock)

There used to be a common misconception that doing good and doing well were mutually exclusive in business.

However, as an impact investor, Business Partners Limited has long embraced the dual mandate of driving financial performance while creating meaningful social impact.

Now a report by Deloitte puts that to rest once and for all, proving that companies who are leading with purpose consistently outperform their peers across key financial and operational indicators.

Deloitte’s research found that purpose-driven firms achieve what it calls a “purpose premium” — a measurable advantage across six drivers of long-term value: brand and reputation, sales and innovation, capital access, operational efficiency, talent and risk mitigation.

High-purpose brands, for instance, recorded nearly a 20% premium in annualised shareholder returns compared to those with low purpose scores, and achieved faster market-value growth - sometimes up to four times faster.