ARE GERMAN BRANDS PURPOSE READY?
Only one in ten companies convinces across the board
Companies are currently facing a number of major challenges in the face of various global crises. At the same time, the transition to a sustainable future demands a great deal of adaptability from them. More than ever before, they are being asked to demonstrate their positive contribution to society.
The new Purpose Readiness Index (PRI) from Globeone shows how well they are doing this. We surveyed around 5,900 consumers for the most comprehensive study to date on the purpose credibility of the German economy. They were asked to rate more than 170 organizations on their future viability, sustainability, authenticity and social relevance.
The result: only around a tenth of the surveyed companies and institutions is currently well positioned to credibly communicate their positive contribution.
Top 5 brands
Bottom 5 brands
“We can only improve what we measure – which is why purpose benchmarking is also needed. With the Purpose Readiness Index (PRI), we have developed a well-founded measurement model for purpose credibility that has already helped many organizations to improve their own reputation by making the right adjustments.”
— Dr. Niklas Schaffmeister, Managing Partner
“In what is probably the biggest transformation of the economy and society, the Purpose Readiness Index is an important measure to what extent stakeholders trust companies. Credibility especially towards employees, investors and customers is an essential prerequisite for strategies to make an impact as well as the success of transformative efforts across industries.”
“In what is probably the biggest transformation of the economy and society, the Purpose Readiness Index is an important measure to what extent stakeholders trust companies. Credibility especially towards employees, investors and customers is an essential prerequisite for strategies to make an impact as well as the success of transformative efforts across industries.”
When is a company "purpose ready"?
Companies with a clearly communicated purpose grow at an above-average rate, are more innovative, and more productive. But not every company succeeds in living up to its purpose. A company is ready to credibly present a purpose if it is seen as honest, authentic, responsible, sustainable, and future-proof. Only then can it convincingly address all stakeholders and communicate its purpose beyond doubt: it is “purpose ready”.
At the heart of the Purpose Readiness Index is the question of whether the German companies, media brands and institutions surveyed are ready to position themselves credibly via a socially relevant reason for existence. To achieve this, they should have as few negative associations as possible in the public perception, which the Purpose Readiness Index depicts by querying five image dimensions, each with 15 purpose-relevant attributes.
Good PRI results help companies to better withstand the critical scrutiny by employees, consumer, the public and investors when it comes to purpose-relevant aspects and ESG criteria.
Why do we need an index for purpose?
We can only improve what we measure – that’s why purpose also needs benchmarking. Turnover, profit and investments are variables that can be precisely quantified in the context of a company, for example with the previous year’s results. But how can company leaders determine to what extent their company has the necessary basis for a credible positioning with a purpose?
Globeone has developed the Purpose Readiness Index (PRI), a sound measurement model for purpose credibility. In the video interview, Managing Partner Dr. Niklas Schaffmeister explains what exactly the PRI measures as well as the advantages a purpose-driven positioning has for companies.
Facts about the study
5,938
Participants
171
Companies measured
Q1 2024
