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Corporate purpose serves as a business lever for cohesion, engagement, and defining corporate strategy. Defining the organization’s vision, identity, and purpose is the first step in the roadmap for strategic intangible asset management
We are convinced that the corporate brand is how you express who you are and why you exist in the world.
Frequently Asked Questions
What is the corporate purpose?
Corporate purpose is a phrase that defines an organization’s identity and reason for being. It goes beyond a statement; it is the core belief behind a company’s existence, the essence that gives meaning to everything it does. Its objective is to align the entire organization toward a common direction, acting as a reference framework that guides the global strategy, as well as all corporate and business decisions, such as governance models, organizational structure, and resource allocation and prioritization.
Why is it important to integrate and activate corporate purpose?
A strong and shared corporate purpose fosters a sense of shared identity, pride, belonging, and internal reputation. Managing corporate purpose is therefore essential, particularly in attracting and retaining talent and in the perception of commitment to shared value. Companies with an authentic, well-defined, activated, and internalized purpose ensure authenticity, create shared value, and make a positive impact on the communities where they operate.
Its transformative role and strategic potential are also notable, as it aligns and guides internal decision-making, ensuring consistency across all touchpoints and experiences stakeholders have with the organization. This approach fosters harmonious relationships with external stakeholders, creating sustainable value for them, as well as for the planet, and achieving long-term differentiation that is not easily replicable.
How is purpose defined? What are its elements? Mission, Vision, and Values
Purpose should be defined with stakeholders, starting from within and prioritizing employees’ perspectives. It cannot be decided from the top down. It should also have an emotional and motivational component that fosters pride and inspires continuous improvement. For purpose to function as a corporate core, it must be understood as an essential part of the company’s identity, alongside its history. Only then will it help achieve coherence, authenticity, cohesion, and a shared future vision.
Purpose is born from, unites, and concisely summarizes the following elements: vision (aspirational goal), mission (explicit statement of how we will achieve the vision), and corporate culture (the unique way of doing things within each organization), along with its strategic priorities and distinctive competencies in an inspiring way.
What is corporate culture?
Corporate culture is “the way we do things” that is shared by members of an organization—i.e., the collective decision-making and behavior within a company. It is defined by values, beliefs, principles, corporate policies, and more. Ultimately, it represents how employees live and express the corporate purpose in their day-to-day actions.
Examples of Purpose and Culture – Practical Cases
Southwest Airlines’ case demonstrates the importance of building a culture from the inside out, starting with employees. Prioritizing employee well-being during the pandemic was also a key factor in Salesforce’s success as they pioneered a hybrid work model. Likewise, integrating purpose and corporate values into an innovative and rule-free leadership approach makes Netflix’s case unique.
Explore these cases and many more in our Practices in Action.
