What's More Important: Profits or Purpose?

“Purpose is not a luxury for businesses anymore; it’s the path to survival.”

That’s not just a motivational quote. It's a truth rooted in data. Studies show that purpose-driven companies grow at three times the rate of their competitors. Consumers are no longer buying just products. They’re investing in values. They want to support companies that align with their beliefs.

In this rapidly evolving world, we’re all forced to ask the same question: What’s more important, profits or purpose?

For a business, this isn't just a philosophical debate. It’s a question of survival and relevance. This article will take a deep dive into why purpose and profit need to coexist - and why the most successful brands aren’t choosing one over the other. They’re partnering with companies, like re-mə-dē, that align marketing with purpose.

The Myth of Profit vs. Purpose: Why You Don’t Have to Choose

For a long time, there’s been a pervasive myth in business: that you can either pursue profits or follow your purpose, but not both. This black-and-white thinking doesn’t hold up in today’s economy. In fact, businesses that embed purpose into their core often outperform their profit-centric competitors.

Here’s why: People are more loyal to brands they believe in. A Deloitte study found that 79% of millennial employees are loyal to companies that have a clear purpose, and 91% of consumers would switch to a purpose-driven brand if the price and quality were the same.

So why aren’t all companies shifting their focus?

Profits Still Matter - A Lot

Let’s be real: no one is suggesting that profits don’t matter. Without revenue, a business collapses. There’s no denying that. But the days of purely focusing on quarterly reports and margins are slipping away.

Companies like Amazon, Tesla, and Apple didn’t become industry titans by focusing solely on their bottom line. They built communities. They tapped into emotions, aspirations, and a vision for the future. In short, they merged profits with purpose.

Focusing on profits alone, without a clear purpose, often leads to short-term wins but long-term decline. This is especially true in the era of social media, where brands are constantly under the microscope.

The Impact of Purpose on Profits

Purpose-driven companies aren’t just more ethical - they’re also more financially successful. A Harvard Business Review study found that companies with a strong sense of purpose outperform the stock market by 42% over time.

That’s not a coincidence. Purpose boosts loyalty, improves employee retention, and leads to more innovative thinking. It also creates a strong competitive advantage.

Example: Take Patagonia, a brand synonymous with environmental activism. They openly encourage customers to repair their old clothes rather than buy new ones. That’s anti-profit, right? Wrong. That same stance builds immense brand loyalty. People see Patagonia as more than just a clothing brand. They see it as an ally in their fight for sustainability, and that emotional connection drives long-term profitability.

How Purpose Drives Consumer Choice

Think about the brands you love most. Why do you love them? Chances are, it’s not just because of the quality of their products. It’s because they stand for something bigger.

According to a study by Accenture, 62% of consumers want companies to take a stand on current issues, whether it’s sustainability, social justice, or equality. This goes beyond trendy marketing. It’s about standing for something authentic.

The public is more discerning than ever. They know when a company is genuinely purpose-driven and when it’s simply “purpose-washing” - a term that describes brands paying lip service to values without actually embedding them into their business practices.

When Purpose Feels Real

Brands that succeed at marrying purpose and profit make their values tangible. Purpose isn't just a marketing campaign or an afterthought. It’s embedded into the DNA of the company.

Let’s look at another example: TOMS Shoes. The brand’s “One for One” model, where every purchase provides a pair of shoes for someone in need, revolutionised the retail space. People didn’t just buy shoes from TOMS - They bought into its mission. That act of giving resonated with customers on an emotional level, making them lifelong fans.

TOMS is a testament to how purpose and profit can coexist, even in a highly competitive retail industry. The question isn't whether a brand can do both. The question is: how can they do it effectively?

But Where Does Profit Come Into the Equation?

Purpose alone isn’t enough to keep the lights on. If the books are bleeding red ink, even the most purpose-driven company will crumble. That’s where partnering with the right digital marketing agency can come into play.

A purpose-driven business is only as powerful as its ability to communicate that purpose to the world. This is where re-mə-dē comes in, a digital marketing agency that helps brands align their purpose with profitable growth strategies.

The Power of Purpose-Driven Marketing

Partnering with an agency like re-mə-dē, which specialises in working with purpose-driven brands, can help businesses amplify their message in an authentic, engaging way. Think about this: a well-crafted digital marketing campaign can do more than just drive sales—it can create a movement.

Today’s consumers are savvy. They can spot inauthenticity a mile away. Marketing campaigns need to not only reach their audience but also resonate on a deeper level. That’s why purpose-driven marketing matters.

When companies partner with agencies that understand how to authentically convey their values, they can create campaigns that don’t just sell products—they build communities.

Actionable Insights for Brands Seeking Both Profit and Purpose

So, how do you balance profits and purpose in your business? Here’s a roadmap:

1. Align Your Core Values with Consumer Values

Before launching any product or marketing initiative, ask yourself: does this align with what our audience values? For instance, if your customers care about sustainability, go beyond the basics. Don’t just talk about your eco-friendly packaging—show how your entire supply chain aligns with environmental concerns.

2. Be Transparent - Always

Authenticity is everything. If your purpose feels contrived or insincere, customers will disengage. Make sure your purpose isn't just a buzzword, but a deeply integrated aspect of your business strategy.

A great way to demonstrate authenticity is through transparency. Share your company’s progress toward its purpose. Even if you’re not 100% there yet, the willingness to share your journey builds trust.

3. Embed Purpose in Employee Culture

Your purpose isn’t just for external consumers - it should be a guiding light for your employees, too. Create a culture where your team understands and lives your purpose daily. This creates more engaged employees, which, in turn, leads to better business outcomes.

4. Partner with a Digital Marketing Agency that Shares Your Vision

Working with an agency that understands your purpose can amplify your reach and impact. re-mə-dē works exclusively with brands that want to make a difference, and they know how to craft campaigns that connect deeply with target audiences while driving tangible business results.

5. Measure Success Beyond the Bottom Line

Yes, profits are crucial. But don't measure success solely by financial metrics. Look at how well you're impacting the community, the environment, and your employees. Create KPIs (key performance indicators) that track both purpose and profit.

6. Use Technology to Drive Purpose

Tech innovations, especially in digital marketing, allow brands to connect with consumers on an emotional level. Data-driven campaigns ensure that the right message reaches the right people. Personalised, purpose-driven content performs better across all digital platforms, increasing both engagement and conversions.

How Purpose Can Evolve Over Time

Purpose isn’t static. It evolves just as your business does. What worked five years ago may not resonate with today’s audience. Stay agile. Be willing to pivot your purpose as you grow and learn more about your customers and the world around you.

For example, Unilever has consistently evolved its mission, from being a standard consumer goods company to one that emphasises sustainable living. Their brands, like Ben & Jerry's and Dove, have adjusted their purposes over time to meet the changing expectations of their audiences, allowing them to stay relevant while remaining true to their core values.

Profits or Purpose: The Final Word

The answer to the question, “What’s more important, profits or purpose?” is clear: you don’t have to choose.

Purpose-driven companies are profitable. But it’s not enough to slap a mission statement on your website and call it a day. Purpose needs to be baked into everything you do - your products, your marketing, your hiring practices, and even your partnerships.

The companies that thrive today are those that understand the intrinsic connection between purpose and profit. They invest in both, knowing that purpose drives brand loyalty, customer retention, and yes, long-term profits.

Partnering for Impact

Partnering with purpose-driven marketing experts, like re-mə-dē, can amplify your brand’s message. These partnerships ensure you’re not just telling your audience what you stand for - you’re showing them. This authentic connection is what today’s customers crave.

In the end, purpose isn’t just the icing on the cake of profitability. It’s the foundation for success in the modern world. Profit matters, but purpose is what makes it sustainable.