What the Guardian newspaper teaches us about the value of purpose

Which comes first, moral purpose or business? The Guardian newspaper is a great illustration of how moral purpose can make your business stronger. This is their story.

The 1993 newspaper price war 

In 1993 the Times reduced their cover price to 30p from 45p, a predatory act (many believed at the time) to shut down the Independent, a relatively new market entrant which had launched in 1986. The Independent tried to raise its prices that same year (it was in great financial difficulty) but when The Times dropped its price again to 20p in June 1994 and the Telegraph dropped theirs to 30p in August, it was forced to follow suit, having already lost 20% of its readers.

Once prices started to rise a year later, the Times had gained significant market share against the Independent and the Telegraph. But the Guardian, which had held firm its 45p price over the period, managed to hold on to nearly all its readership. Not only that but it has continued to innovate and lead the way in terms of news and journalism and remains to this day the most distinctive broadsheet brand in the UK.

The Guardian’s moral purpose and values

Founded in 1821 in Manchester in the wake of the Peterlee Massacre and the protests against the Corn laws, it stood out as a liberal, independent newspaper of the time and has occupied a liberal/left wing position ever since. CP Scott, the editor and owner, reflected on its purpose in his 1921 essay written to celebrate its100th anniversary as follows:

A newspaper has two sides to it. It is a business, like any other, and has to pay in the material sense in order to live. But it is much more than a business; it is an institution; it reflects and it influences the life of a whole community; it may affect even wider destinies. It is, in its way, an instrument of government. It plays on the minds and consciences of men. It may educate, stimulate, assist, or it may do the opposite. It has, therefore, a moral as well as a material existence, and its character and influence are in the main determined by the balance of these two forces. It may make profit or power its first object, or it may conceive itself as fulfilling a higher and more exacting function.

 I think I may honestly say that, from the day of its foundation, there has not been much doubt as to which way the balance tipped as far as regards the conduct of the paper whose fine tradition I inherited and which I have had the honour to serve through all my working life. Had it not been so, personally, I could not have served it. Character is a subtle affair, and has many shades and sides to it. It is not a thing to be much talked about, but rather to be felt. It is the slow deposit of past actions and ideals. It is for each man his most precious possession, and so it is for that latest growth of time, the newspaper. Fundamentally it implies honesty, cleanness, courage, fairness, a sense of duty to the reader and the community. A newspaper is of necessity something of a monopoly, and its first duty is to shun the temptations of monopoly. Its primary office is the gathering of news. At the peril of its soul it must see that the supply is not tainted. Neither in what it gives, nor in what it does not give, nor in the mode of presentation must the unclouded face of truth suffer wrong. Comment is free, but facts are sacred. “Propaganda”, so called, by this means is hateful. The voice of opponents no less than that of friends has a right to be heard. Comment also is justly subject to a self-imposed restraint. It is well to be frank; it is even better to be fair.

 Sustaining unique customer relationships

The Guardian didn’t engage in trying to shut down the Independent, arguably the single biggest threat to its circulation, nor did it adopt the short-term tactics of its competitors. Rather, it stuck to its guns, continued to invest in innovation and journalism that not only ket its readership but also boosted its commercial performance.

It turns out the Guardian’s readers wouldn’t be swayed by a 56% discount offered by the Times whilst other titles’ readers were. This was because their brand choice was driven not by price but by a real and deep motional connection that placed a high value on their personal experience of owning and reading the Guardian. The power of this connection was and still is today framed by what the newspaper stands for which, for the majority of its readers, is more important than price.

So long as their editors and business people understand this, ensure they remain true to these values and yet can adapt to their changing commercial landscape, they should continue to enjoy the commercial success that flows. I’m told CP SCott’s essay is the only briefing given to new editors. After all, its all they need to know. Read it in full here

What can we learn?

Not everyone is like CP SCott. After all, he gave away his shares in the newspaper, gifting them to the not for profit Scott Trust which controls it to this day. And some people are happily in business to make money. But if your business does have a moral purpose that’s more important than profit, put this at the heart of your strategy. You’ll build extraordinary relationship with customers and with your staff and sustain performance even under the most severe competitive pressure. That’s what a great brand is.

Follow