Purpose that gives a company direction

Corporations need to stand for something greater than themselves or the drive for profit

In Martin Scorsese's Academy Award-winning movie Hugo, the main character tells his friend Isabel in the clock tower of a 1930s Parisian train station: "I like to imagine that the world is one big machine. You know. Machines never have any extra parts. They have the exact number and type of parts they need. So I figure if the entire world is a big machine, I have to be here for some reason, too."

The reason why we are in the world, the reason why a company exists, or the reason why a brand is created the way it is, is purpose. The ancient Greeks called good life eudemonia. Eudemonia was not an easy, comfortable, materially rich life, but one that was authentically, meaningfully rich: rich with relationships, ideas, emotion, health and vigor, recognition and contribution, passion and fulfillment, and great accomplishment and enduring achievement. That conception of prosperity is very different to the one we know today.

The generally accepted definition of prosperity these days is the growth of industrial output and not the emotional, social, intellectual, physical, or ethical growth of humans. It does not have to be this way. Purpose needs to stay ahead of profit, for purpose is the real game, and profit merely the scoreboard.

When people, corporations and brands identify a purpose for themselves, they begin to be much more than just individuals or corporations or brands. They begin to stand for something much bigger, something that is very likely to be a force for social good.

Purpose is what it takes to build brands with soul, not just sales. It bridges the fault line between the boardroom and the living room, the shareholder and the citizen, the job and the calling.

Businesses without purpose may make a big profit, but brands with purpose make a big difference. Purpose moves people from loyalty to love. Purpose also helps us dice the strategic options that come out of market and business realities. It is almost like a company's religion that helps it to navigate in a fast changing world that throws up multiple challenges and options all the time. Purpose requires us to reflect on our capabilities and interests. It requires an honest audit of what we do and what we really like to do or are capable of doing.

As societies develop and as access to information helps people to know more, we are developing higher levels of contentiousness. Many of us no longer buy stuff; we buy into stuff. Many of us expect the bar code to carry a moral code, too. Purpose-centric brands are different because they turn a brand into a stand, a stand bigger than the brand itself, and a point of view that shares a greater purpose. Stands are created from the place of origin, not from researching the marketplace for what might sell. Stands are distinctive, creating indispensability in a competitive world.

Today, more than ever before, employees want to work in the company that stands for something bigger and more meaningful. This way, employees raise their own stature and transform into missionaries who are working for a bigger cause.

All this talk about purpose raises a question: Can purpose help make money, too? Only when people, organizations and brands define a role and goal for themselves that is bigger than the material and monetary goals can they really be a profitable force for good. It is not about social work and activism; it is about authenticity and realism in things that corporations and brands engage in. In times of rising technological parity and increasing transparency, the only approach is to proactively embrace deep-rooted truthfulness. People can see through fakeness easily, and corporations without a grand purpose are easily replaceable.

This is not a warning for marketers but an opportunity. Organizations are capable of delivering this when they believe they have a greater responsibility in the world. Such purposeful brands and companies will transform society by using the power of business to mitigate the ills of the world, such as hunger, poverty, injustice, and the deterioration of the environment. No other sector in society has the means to do so.

Some marketers already understand this.

Taobao.com, the largest e-business platform in China, with sales figures that run into billions, is much more than a business. Jack Ma, the founder of Taobao, Alibaba.com and Alipay, believes that every business should be made possible.

Taobao's bigger purpose is to make any kind of business possible.

This is transformational thinking. By saying this, Taobao has elevated itself from being just a website or a platform. It is now a bearer of hope for millions of Chinese producing things in far-flung corners of the country to be connected to people who need it thousands of kilometers away. Further, Ma says Taobao has a role to play and help Chinese living anywhere in the country live the lifestyle they desire. This was a preserve of big-city dwellers a few years ago. A purpose like this helps Taobao take a more holistic and long-term view of its business and its greater role in society.

Pan Shiyi, leader of Soho China, a real estate company in a country where the real estate has a bad name, believes Soho's bigger role is to help China's urban centers develop a new design aesthetic. This is a much bigger goal than just building mega structures. It is especially relevant for China as the country is virtually rebuilding itself on top of an urbanization spree.

Even if a brand or company does not know its purpose, it can find it. Fruitful companies and brands go back to their roots to discover their beginnings. Organizations can do the same by talking to the gardeners who nurtured the organization when it was a seedling.

Visit the brand or company archivist and find the brand anchor.

Archivists are important people; they are the keepers of ethos and history. And ethos and history help us tell our story. (In fact, the word "history" is from the Latin historia, which means story.) Archives are treasure troves filled with stories that inspire and guide the organization. Phil Mooney, the Coca-Cola company's chief archivist, believes his company's future is in its history. "Going back to our roots gives us permission to believe and act like much more than a soft drink. We can once again become a symbol of good."

A brand or corporation can carve out a unique role for itself by positioning itself as the problem-solver in society. By addressing the biggest challenges facing people of its times, the brand can give itself a higher purpose than just selling designated units of products.

Why do corporations need to realize their bigger purpose in China? Even in developing countries like China, proliferation of social media and pervasive distrust with various institutions has led to purpose and meaning occupying center stage in business and marketing.

The rise of social media has made the world more transparent. The average person knows much more about things than what people from the generation before did. This makes it imperative for marketing messages to be honest and not make claims not founded in reality.

With increasing market penetration, more and more industries are maturing. So there is greater need for brands and businesses to differentiate themselves.

With widespread proliferation of technology, most businesses have access to the same kinds of tools, techniques and information. Thus differentiation between companies and brands is going to be driven less by products and services and more by purpose, beliefs and values.

How can corporations realize their bigger purpose in China?

China's former premier Wen Jiabao pointed to the country's coming challenges, when he described the country's economic growth as "unsteady, imbalanced, uncoordinated, and unsustainable". He urged the adoption of policies to correct these problems.

This is the opportunity that Chinese and multinational corporations have in China. They can realize their bigger purpose by relating their purpose with the challenges that China faces today. When they give their existence a new purpose in resolving bigger challenges facing China they can reframe their business opportunity and widen it significantly.

Contemporary China's challenges, such as lack of talent, environmental degradation, lack of innovation, need for development of cultural assets, and the demise of morals are just some of the broader themes that can be addressed constructively. Imagine what a large corporation or a small company engaged in services can gain when it redefines its purpose from providing a materially-rich life to a more authentically meaningful life. Developing brand programs through advertising, among others, could be just some of the ways that companies can make themselves more relevant in China.

To sum up, what Hugo told Isabel in the clock tower, about the world being a big machine, may or may not be true but what is true is that when brands and corporations define a bigger purpose for themselves they win. They win, because with purpose they not only become a force of social good and give a battle cry to their organization but also because the world believes in them and helps them succeed. It is such purpose-driven companies and brands that make bigger profits.

The author is planning partner with Ogilvy & Mather in Beijing. The views do not necessarily reflect those of China Daily. Contact the writer at saurabh.sharma@ogilvy.com

(China Daily 04/19/2013 page9)