What is Purpose-Washing?
This article was originally published in December 2021 and updated in September 2023, and again in August 2025 to reflect global thinking and practice.
Have you heard of the term greenwashing?
It essentially refers to companies that mislead or overrepresent their products or brand as being environmentally friendly rather than actually doing the hard work to ensure that the company itself is sustainable. While some greenwashing is unintentional and results from a lack of knowledge about what sustainability truly is, it can also be intentionally planned as a marketing or public relations ploy.Unfortunately, this has misdirected willing consumers down the wrong path in the recent past, which has led to a healthy skepticism towards many company efforts claiming to improve the environment in the market. Purpose washing defined
In much the same vein as greenwashing, there is also a term used to describe the misuse of ‘purpose’ for commercial gain called ‘purpose-washing’. It stands to reason - just because a company has a purpose statement that they are doing good in the world, or a linkage to their brand, it doesn’t mean they’re living their purpose. An investment in purpose can actually do more harm than good to a brand if it’s not brought to life authentically - and consumers are increasingly demanding truth and transparency on the back story of a company when claims of ‘purpose’ and “social impact” are used in marketing. 
The purpose gap
Today’s consumers don’t just buy products, they buy into the values of the companies behind them. The Edelman Trust Barometer shows just how high the stakes have become - 40% of middle income consumers and 50% of high income consumers say they’ve stopped buying from a brand because they didn’t trust the company that owned it. Yet inside organisations, the story looks very different. Research from Razorfish and Vice Media found that while 83% of marketers believe their brands are living their purpose, only 43% of consumers agree. This disconnect highlights the “purpose gap” - a divide created when a company’s internal perception of purpose does not match the external reality experienced by customers. Many organisations talk confidently about purpose, but struggle to demonstrate it in practice. Closing the gap requires more than comms, it demands alignment between what a company says, what it does, and how it shows up in the market.A Harvard perspective
Harvard University Professor Ranjay Gulati has another take on purpose that may be considered ‘purpose-washing’.After interviewing 250 people across a range of companies, Gulati argues that there are indeed different types of purpose. He categorises them into two types - convenient purpose and deep purpose.The majority of companies he advises fall into the category of convenient purpose, where purpose is used for superficial means but not as a central driving force for change. However, he advises beyond the somewhat deceptive and transactional nature of convenient purpose, there’s another type of purpose - deep purpose. Deep purpose companies have purpose at the core of their strategy, and are reaping the benefits of doing well and doing good at the same time. They’re also less at risk of purpose washing. 
Recent examples of purpose washing
In this paper by King’s College London, they provide recent examples of companies that have been accused of purpose washing including Nike, H&M, Volkswagen, Audi, Starbucks and Primark.How to reduce your risk
Purpose washing isn’t just a reputational issue - regulators are beginning to treat it much like greenwashing, which means the risks are legal and financial as well as brand related. Inconsistent or superficial purpose claims can quickly erode trust, damage equity, and expose organisations to scrutiny.But when purpose is clearly and transparently embedded at the core of a company’s reason for existence (not just in its brand campaigns) it becomes a source of competitive advantage. McKinsey research shows that companies with authentic, values-led purpose not only avoid these risks but also unlock opportunities for accelerated growth.Conclusion
When purpose is lived deeply, it builds trust, resilience, and drives growth. When it’s reduced to brand activity, the risks are real - reputation, equity, and even legal consequences.If you want to reap the benefits of embedding purpose into your strategy, talk to us today.About the Author
Awarded internationally, Katrina Savell is a seasoned FCMO (Fractional Chief Marketing Officer) renowned for her leadership expertise, strong track record and passion for developing businesses as a force for good. With extensive experience in executive and consulting roles, she has excelled in steering marketing and communications strategies across diverse sectors, from startups to multinationals. Skilled in managing the C-suite and engaging business owners, Katrina's collaborative approach has consistently yielded impactful results, elevating brands, driving growth, and making a positive difference in the world.
References:
https://medium.com/disruptive-design/what-is-greenwashing-how-to-spot-it-and-stop-it-c44f3d130d5
https://www.campaignasia.com/article/consumers-are-growing-wary-of-purpose-washing-study/473981
https://carolyntate.co/purpose-washing-is-it-the-new-green-washing/
https://www.campaignasia.com/article/consumers-are-growing-wary-of-purpose-washing-study/473981
The Messy but Essential Pursuit of Purpose, Harvard Business Review, March 2022
Inside Companies that Get the Purpose-Profit Balance Right, HBR Ideacast, March 2022
https://www.brandpie.com/ceo-report-2024
https://www.kcl.ac.uk/business/assets/research/literature-review-purpose-washing.pdf
SEPTEMBER 13, 2023
