Let’s Re-imagine Food and Health in America
CEOs Leaning into Corporate Purpose…
This issue of Why Food For Health Matters highlights why purpose-driven corporate strategy is good for business. Two excellent reports were released this week, Monitor Deloitte – The Purpose Premium and KPMG’s 2021 U.S. CEO Outlook – Plugged-in, People-focused, Purpose-led.
Deloitte’s The Purpose Premium
Sales and Innovation
- 53% new revenue streams for socially conscious offerings
- 39.5% price premium for sustainably-marketed products
Brand & Reputation
- 78% greater recognition of companies that exhibit a strong purpose
- Brands with purpose 6X more likely to be protected in the face of negative publicity
Capital Access and Market Valuation
- 4x faster growth potential
- 6.4% higher return on equity
Operational Efficiency
- 64% lower logistics and supply chain costs
- 10% improvement in employee connection with mission
Talent
- 78% prefer to work for a purpose-driven company
- Approx. 50% of workers would take a pay cut to do so
Risk Mitigation
- 15% of companies would be unprofitable if accountable for their environmental damage
- Brand protection from a negative trust-related event
Source Deloitte
KPMG’s 2021 U.S. CEO Outlook
KPMG’s survey of 1,300 U.S. CEOs indicates that the C-suite executives are embracing environmental, social and governance (ESG) initiatives even while leading during these uncertain times. KPMG indicates that “over three-quarters of CEOs surveyed are prioritizing the social component of their ESG programs and 76% are looking to lock in the sustainability and climate change gains they have made over the past 18 months.”
It is critical for the ESG purpose be authentic and resonate with the company’s values especially to meet the public’s heightened interest and expectations for business to address societal challenges. Paul Knopp, KPMG U.S., Chair & CEO says that, “the moment has come for corporations to fully lean into ESG — its importance will only grow.” His advice to CEOs, “don’t wait” invest in ESG today to create long-term value for their stakeholders, generate positive societal change, and create sustainable change for years to come.
