Leading for Organisational Change

Chapter 2The Angel in the Marble

Six Perspectives on Purpose

‘Purpose’ is without doubt a hot topic and a big buzzword for business. It is, however, poorly defined and often involves the conflation of at least six related but distinct ideas. So let's take a little wander through the territory of what we might mean when we talk about purpose, and why it matters.

First up is the corporate responsibility school of ‘corporate purpose’. While corporate responsibility is sometimes regarded as a ‘bolt on’, ‘purpose’ is about an organisation's whole raison d'être – it gives responsibility a serious promotion, putting it at the heart of everything an organisation does and how it thinks. This is purpose entirely in terms of societal purpose, something normative and ‘good’. It is about looking beyond short-term profit generation to positively impact individuals, society and the environment.¹

This interpretation of purpose is a close cousin of a second, older concept which can be found in the Quaker-founded businesses of the past 200 years, and which is now enjoying a huge revival – namely, purpose as part and parcel of enlightened capitalism, incorporated within a broader and longer-term definition of value generation. This argument says that businesses with a clear sense of purpose generate more long-term value – i.e. are more sustainable – than those without.² Their positive societal impact strengthens the whole system upon which they depend, and their people are more engaged, innovative ...