What is the purpose of “purpose”? The answer to this question is more vital and relevant than you may think. Put simply, your purpose is the reason you exist, both as an individual and as a business. Purpose defines you, drives you and motivates you. It makes a company strive to be better and attain success that goes beyond mere money-making. It isn’t, however, the same as a corporate “vision” or “mission” because these things might change over time – but purpose never does.
Having a company’s purpose clear is of interest to its shareholders, customers and employees. To the latter, it provides identification potential and a sense of meaning, because knowing the “why” behind what a company does creates transparency. In its article “Purpose with the Power to Transform Your Organization,” The Boston Consulting Group (BCG) states that “Purpose is also aspirational: It depicts what the organization can be and goes beyond brand positioning to take a stand. Rather than being only market driven, a purpose-based organization is also driven by values, culture, and ethos.” Also, according to the Global Leadership Forecast 2018, which is produced by Development Dimensions International (DDI), The Conference Board and EY, being a purposeful organization carries many benefits, such as better engagement, a stronger culture, higher levels of trust and loyalty and even the ability to better retain customers, employees and shareholders during transition periods.