The point of a purpose is ‘to produce profitable solutions to the problems of people and planet’ and ‘not to profit from producing problems for people or planet’ (Mayer, 2020, p. 3).
A corporation’s purpose statement must point to a specific problem it intends to solve. For example, Novo Nordisk’s purpose is to eradicate Type 2 diabetes.
A purpose statement is like a vision statement, it aids decision-making, inspires employees, and serves as a galvanising and motivating force within an organisation.
Every other strategy and plans take their cue from the purpose statement. All activities have to be aligned to meet this purpose. It is the driver of all decisions.
Corporate purpose refers to the reason for a company’s existence beyond just making profits. It encompasses the broader societal and environmental impact that a company seeks to achieve through its operations.
While generating profits is a fundamental aspect of any business, corporate purpose goes beyond financial goals. It encompasses the company’s core values, mission, and its commitment to stakeholders, including employees, customers, communities, and the environment.
A well-defined purpose helps align the organization’s activities and investments with its broader societal and environmental goals.
Ultimately, corporate purpose serves as a guiding principle that shapes the identity, culture, and behaviour of the company.
Corporate purpose helps inspire employees, attract customers, build trust with stakeholders, and drive sustainable growth and success in the long run.
