Organizational purpose concept clarity: An exploration of employees' perspectives

Abstract

Employees play a critical role in materializing the company's purpose as they are the ones responsible for planning and executing all the organizational activities. Considering their vital role, we explored how employees, currently working full‐time from home, perceive their participation in the company's purpose. To do so, we performed online interviews with 23 employees from 14 companies. In addition to employees' perspectives, we collected textual data from the companies' websites where these employees were working, allowing us to compare both perspectives and better understand employees' perspectives. Results revealed that employees do not directly recognize the organizational purpose concept and that the term purpose is barely found on the companies' websites. Therefore, we found that besides a problem of conceptual lack of clarity in the literature, organizational purpose is still on the way to being comprehended within companies. To help solve this problem, based on stakeholder theory, we discuss the meaning of organizational purpose and compare it to related concepts such as mission and vision. Finally, we offer managers orientation on how they should operationalize their companies' purpose and how they may externally communicate it online.