New digital tool to help businesses become more purposeful

A new digital tool has launched to help businesses embed purpose in their operations.

Purposely will aim to make it easier for companies to commit to social purpose and redefine what success looks like beyond profit.

The system was created by social entrepreneurs group UnLtd in partnership with law firm Bates Wells Braithwaite (BWB), with strategic support from the Department for Digital, Culture, Media & Sport (DCMS).

Purposely is accessed through a free online portal and asks users questions about their business, offering a set of modified company Articles based on the answers provided.

The tailored legal framework makes founders and business leaders legally obliged to live aspects of their purpose, the scope of which depends on how purpose driven they wish to be.

The minds behind Purposely believe it could help businesses unlock growth, as new research has shown that the majority (73%) of consumers are more likely to buy from brands that put purpose before profit.

That figure is even higher among 18-34 year olds, who are 81% more likely to buy from purpose-driven brands.

The findings follow the Government’s 2016 Mission-Led Business Review, which highlighted a lack of knowledge around embedding purpose within the DNA of businesses.

Minister for Sport and Civil Society Tracey Crouch MP said: “There is huge potential for businesses to play a significant role in society by broadening prosperity and tackling inequality. As the Mission-Led Business Review showed, many business leaders recognise this but are often unaware that company law already allows them to commit to a purpose beyond profit and build this into their governing documents.

“This is why the launch of Purposely is so important. It offers business owners a simple and authentic way to take the first step in putting purpose at the heart of their company.”

UnLtd chief exec Mark Norbury commented: “Purpose is crucial in business because it enables entrepreneurs to build companies that truly reflect their vision, values and ethics.

“For some entrepreneurs, this means putting a social or environmental purpose as the core driver of their business. For others, it means delivering social impact alongside commercial goals.”

He continued: “Using Purposely will offer businesses several commercial advantages in the modern age – increasing trust in consumers, enabling businesses to recruit better talent, and helping founders to secure their vision and legacy in their organisation’s DNA.”

BWB partner Luke Fletcher said: “Embedding purpose within a company’s constitution is often felt to be an intimidating task for many business founders, owners and advisers.

“Purposely makes it easy by providing a tailored version of a company’s Articles that sets out each business’ own unique commitment to purpose, which should help it stay true to its purpose over time.”