When it comes to purpose, investors look to take action

Failing to show progress on ESG commitments subjects your brand to new threats from activist investors with an axe to grind.

Purpose communications—the new industry byword for corporate social responsibility messages—are getting a closer look from stakeholders.

From diversity, equity and inclusion (DE&I) to environmental impact, companies are supposed to show how they have taken action on a range of issues consumers consider important. Industry research on brands taking a stand on social issues is now firmly entrenched.

And, the real risk for organizations and their communications teams lies with investors.

Activist investors—deep-pocketed individuals who use their dollars to drive change—are increasingly pressuring organizations to follow through on their purpose commitments. Whether it’s a fund pushing fossil fuel companies to increase decarbonization efforts or a single investor looking to force fast-food chains to adopt new animal treatment standards, the threats to companies are changing.

The ESG connection

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