Clarification of the purpose

It is easy to debate what you do, but the more extensive debate is to ask why you are doing it. What is the purpose of your efforts? The purpose is an enduring reason for the business to exist beyond just making a profit: a purpose that benefits society and respects people.

A good purpose is not about crafting a catchy statement. The purpose is why the business exists; it should clearly explain how society benefits from the company’s existence in an inspiring, authentic, and, above all, practical way.

Purpose is the glue that inspires all the people on which the business depends to succeed: its employees, customers, suppliers, the communities in which it operates, its investors, and the future generations affected by what it does. The power of purpose is to move people to commit to a shared worthwhile endeavor, unlocking their potential to create better value for both the business and society. To be a valued member of a winning team on a worthwhile mission.

Research on human motivation shows that humans seek meaning through their work and are motivated by autonomy, mastery, and purpose. This is supported by a growing body of evidence showing that purpose-led businesses deliver better long-term performance and are better able to attract, motivate, and retain talent.

This goes beyond employees: consumers are increasingly looking to businesses to provide products that respect the environment, pay their taxes, treat their people fairly, take responsibility for their supply chains, and be honest with their customers.

Fundamentally, purpose depends on whether the people in the organization respect and care about those affected by what the organization does. This is evident in the quality of the company’s relationships. A purpose-led business is conscious and intentional about the potential and the well-being of all people affected by the business in a manner that produces profitable outcomes, a better society, and a healthy planet.