- 66% of business leaders say they are profoundly rethinking their organisations' purpose as a result of disruption
- Only 15% say that their company's main purpose is to maximise shareholder value
A majority, 73%, of business leader believe in the value of a strong corporate purpose, and only a minority (15%) say their company's main purpose is to maximise shareholder value, according to the EY report, How can purpose reveal a path through disruption?
The report reveals that purpose means different things to different companies. When asked to characterise their organisation's purpose, 33% of those surveyed cite bringing value to customers, 15% of global organisations say boosting their share price and 11% cite bringing value to their employees, all focusing on a single stakeholder group. Others have a different conception: 40% of respondents say their organisation’s purpose is aimed at creating value for multiple stakeholders or offering an aspirational reason for being.
In addition, two-thirds of executives are profoundly rethinking their organisations' purpose as a result of the disrupted environment, and half of those are moving in the direction of this wider concept of purpose. 68% of companies that broadly define purpose and integrated it into their organisations say purpose gives them the agility to innovate in times of disruption.
Leaders need to turn their purpose rhetoric into business reality
The survey finds that 97% of companies that deeply integrate a broader sense of purpose into their DNA report a good or great deal of incremental value from doing so. Companies that have deeply embedded an aspirational and human-centric definition of purpose cite specific ways in which embedding their purpose across activities creates value.
In order to help businesses understand the pathway to turning the purpose rhetoric into reality, the report identified four steps that can help every organisation reach their purpose goals:
- Clearly articulate a purpose that responds to the needs of their stakeholders and is grounded in what an organisation does
- Embed purpose into their strategy and operations, and align their decision-making with that purpose
- Constantly evaluate where they are in their journey and what needs to change
Accelerate the journey by placing purpose at the center of their culture and ensuring it is owned by their people
Paul Arkwright
Publisher
