By now, you’ve likely heard the news of Patagonia’s billionaire founder Yvon Chouinard (and family) relinquishing ownership of the business and committing the profits to fight the effects of climate change. For a business leader and a company that has been vocal about its commitment to sustainability and the environment for decades, this is their biggest stand yet — and arguably the most impactful move we’ve seen any major business take on an issue.

So, what can brands learn from Patagonia about purpose-driven marketing?

Patagonia: Raising the Bar on Values-Based Business

“Just as Patagonia has helped move the goalposts on sustainability in the supply chain, and speaking out on social and environmental issues, it has now established a new standard for how a company can truly walk the walk on its values far beyond an ESG or CSR strategy,” writes Jeff Beer in Fast Company.

Patagonia is certainly walking the walk like no one else. And while it’s likely unrealistic that we’ll see a wave of billionaires and CEOs following suit, it will be interesting to see how this news fuels consumers to re-evaluate brands’ commitments to their reported values. We may see more brands that report having core values or commitments to issues of social justice or sustainability, etc. getting called out by consumers for falling short. This has become known as “purpose washing.”

Ken Beaulieu, senior vice president of the ANA Center for Brand Purpose was quoted in a recent Marketing Dive article summarizing it best: “It’s a case of all talk and no action, and that has led to charges of purpose washing….if they [brands] want to have the sway of a Patagonia, they must consistently and authentically demonstrate their reason for being beyond turning a profit.”

Purpose-Driven Marketing

When a brand is walking the walk, including messaging about the company’s values is an incredibly successful marketing strategy. Study after study have shown consumers’ increased trust in and appreciation for companies and brands with purpose. And that purpose doesn’t have to be as big or bold as Patagonia’s commitment to save the planet — it just has to be true.

Purpose-driven marketing is when an organization centers its messaging on an external social issue or mission and communicates a set of values to its audience.

This can either be a holistic strategy (ie Patagonia) or a campaign tied to a specific moment in time. In either case, authenticity is the most important predictor of success. Just as consumers are becoming more critical of brands and are looking for them to take a stand, they’re also more savvy and can tell when a brand is being manipulative or insincere. Purpose-driven marketing only works when it’s truthful. 

Taking a Stand: More than Marketing

Developing a purpose-driven marketing campaign or strategy must follow business goals and an operational commitment to the purpose. Brands should take time to be introspective and reflect on these questions:

1. Can we commit to making operational or business changes to align with this purpose? 
2. Is this a stand worth taking? 
3. Are we willing to make mistakes and/or be called out once we take a stand? 
4. Does this purpose/cause/mission align with our business goals and/or category?
5. Does this purpose/cause/mission align with our core audiences’ beliefs or values?

All of the brands who are finding success with a purpose-driven strategy have answered these questions and made a commitment to their cause.