Leaders recognize the importance of purpose-driven companies

Are you working in a purpose-driven company?

In the news, you are probably observing a shift in conversation. To clarify, the importance of Purpose is becoming a focus of leaders today. Rather than having a sole concern with profits, CEOs are now talking about Purpose in a different way.

The Purpose of a Corporation

The Business Roundtable is an association of chief executive officers of America’s leading companies. They recently released a Statement on the Purpose of a Corporation. This new statement, signed by numerous CEOs, highlights the role that corporations can play in improving society. An organization’s focus must be on delivering long-term value for shareholders. But that is not enough. Companies must also seek to make a difference for all stakeholders—that means, serving customers, investing in employees, dealing fairly and ethically with suppliers, and supporting our communities.

Leaders on Purpose CEO Study

The 2019 Leaders on Purpose CEO study reveals that CEOs are building Purpose into the core of their businesses. They are becoming purpose-driven companies. They define Purpose this way:

“Purpose is the ambition to create value by contributing to the welfare of society.”

The results of the study highlight the importance of Purpose for promoting business success and advancing social wellbeing.

Leaders of Purpose-driven companies

Purpose is the contribution that an organization makes to society. Leaders now realize that solely focusing on shareholder profit is not the way to build a great company with engaged employees.

More and more, we are hearing CEOs talk about the importance of building meaning in work. To clarify, leaders understand that being purposeful is not in conflict with being successful and profitable. For example, Starbucks CEO Kevin Johnson said in a recent CNBC interview:

“The whole foundation of Starbucks is built on the fact that we believe that the pursuit of profit is not in conflict with the pursuit of doing good. In many ways our purpose and our reason for being go far beyond the pursuit of profit.”

Kevin Johnson described how their stores are a part of their local communities. He highlighted the importance of serving their communities. Starbucks seeks to support the local community and neighborhood. As the Starbucks mission reads:

To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

Tesla and other companies led by Elon Musk are purpose-driven companies. They seek to improve the planet and affect the future of humanity. For example, Tesla’s mission is to accelerate the world’s transition to sustainable energy.

Robert Branson considers smart disruption as part of the company’s DNA. On their website, they describe the Virgin Group’s purpose this way:

Virgin Group’s purpose is changing business for good.

The website shares one of Branson’s quotes that illustrates his focus on purposeful work: “When people work toward a common goal, they are driven, passionate and purposeful.”

Making a difference and meaningful work

Making a difference and providing meaningful work is key to having a successful company. If leaders and employees cannot quickly identify their contribution to society, then the Purpose is either not defined or not shared. Companies, in the past, have neglected this broader perspective. Many employees today are seeking a purposeful company, and they are changing jobs because of it. Therefore, the Purpose must be a contribution to society that matters to the people who work there.

Purpose-driven companies outperform: The Global Leadership Forecast 2018 Report

The Global Leadership Forecast 2018 report illustrated the impact of Purpose on financial performance. Just having a Purpose statement is not sufficient. Instead, the company must be a Purposeful company. To clarify, this is a company where leadership actively practices and supports the Purpose. Behaviors are aligned with the Purpose.

CNBC/SurveyMonkey @Work Survey and Workplace Happiness Index

CNBC presented the results of their November 2019 CNBC/SurveyMonkey @Work Survey and Workplace Happiness Index. Each quarter CNBC and SurveyMonkey poll over 8,000 professionals. The results show that Purpose matters. Their survey revealed that “Feeling Work Is Meaningful” is the most important factor in determining workplace happiness. Thirty-five percent of respondents noted it is the most important factor. In contrast, 21% said “Being Paid Well” is the most important factor.

The importance of Purpose and meaningful work

In conclusion, company Purpose and meaningful work do matter! Therefore, I ask, what is the Purpose of your company? Firstly, do employees know the Purpose of their company? Secondly, do they personally connect with the Purpose? And thirdly, do they live the Purpose each and every day. This is the path to creating Purpose-driven companies and workplaces that thrive.

Contact Sheila to help you become a more Purpose-driven company

Have any questions? Above all, contact Sheila for information on her organizational culture, change, and employee engagement services. Her management consulting firm Workplace Culture Institute is based in Atlanta, serving clients globally. Use the Contact Form to email Sheila.