Purpose: From theory to practice

Abstract

While there is abundant discussion in business journals on the “how to” of purpose to achieve social good beyond profitability, academic research addressing the theoretical and practical impact of purpose on an organization's performance is limited. Some management scholars claim that organizations that are not purpose‐driven and fail to consider the needs of their relevant stakeholders will not be able to create long term value for their companies. There is also concern that organizations may use purpose to show intention towards social good but lack tangible actions to demonstrate their commitment. To determine whether purpose impacts the long‐term value creation of organizations, this research paper examined a deeper understanding of the meaning of purpose from both individual and organizational perspectives. With clarity on individual purpose as the ability for humans to consciously set their intentions to achieve good, organizational purpose can be considered as the conscious intentions of individuals to work collectively towards social good beyond the singular goal of profitability. Building on this theoretical understanding of purpose, together with an exploration of the shift occurring in organizational responsibility from a singular focus on shareholder returns towards stakeholder inclusivity, this paper proposes a Stakeholder Purpose Framework which links the impact of purpose to long‐term value creation by aligning an organization's purpose with their stakeholders and measuring the outcomes of relevant environmental, social, and governance (ESG) metrics. Activating this framework will provide analytical data supporting whether (or not) purpose does impact an organization's ability to create long‐term value.

The Moderating Effects of Corporate Social Responsibility on Corporate Financial Performance: Evidence from OECD Countries

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Should I Stay or Should I Go? From Turning Points to Decision to Quit in a Call Center Environment

“…Based on these responses, it seems like management was perhaps driven by a profit motive, without addressing other collective, unifying potential purposes. Beyond the primary goal of sales revenue, a more collective purpose would include social implications centered on support for both customers and employees (Jones & Gomes, 2023). This broader inclusion around the organization's primary intentions would actually engender more committed employees who are poised to work toward the organization's profitability goals.…”

The workforce revolution: Reimagining work, workers, and workplaces for the future

“…The world is undergoing a profound transformation, wherein the fundamental nature of work (i.e., the responsibilities and tasks that people perform in exchange for remuneration), workers (i.e., the people performing work), and workplaces (i.e., the spaces where work is performed by workers) is being reshaped. This transformation is driven by externalities and trends such as: Groundbreaking technological advancements like Generative AI (e.g., ChatGPT; Dwivedi et al., 2023; Lim, Gunasekara et al., 2023) and virtual reality (e.g., metaverse; Dwivedi et al., 2022; Kraus et al., 2023); Increasing competitive pressures that necessitate new ways of thinking and functioning (e.g., the challenger approach; Lim, 2020); Shifting demographics with the rise of new generations (e.g., Generation Z or zoomers; Lim, 2022b) and intergenerational transitions (e.g., Generation X or baby boomers moving into the aging population and Generation Y or millennials becoming middle‐aged adults; Lim, Kumar et al., 2023); Evolving societal expectations such as corporate social responsibility or CSR (Castillo, 2022; Prasad et al., 2022), diversity and inclusion (Arora & Patro, 2021; Yilmaz et al., 2021), environmental social governance or ESG (Lim, Ciasullo et al., 2023), lifelong learning and upskilling (Lang, 2023), purpose‐driven work (Collins & Saliba, 2020; Jones‐Khosla & Gomes, 2023), sustainability (Lim, 2022a), and work‐life balance (Chigeda et al., 2022; Mello & Tomei, 2021; Naim, 2022); and Ongoing global crises or mega‐disruptions such as the COVID‐19 pandemic (Lim, 2021, 2023b) and the Ukraine‐Russia conflict (Lim, Chin et al., 2022), among others. …”