Business evolution: how living your purpose drives change for good
The third Evolving Business Masterclasses (Nov ‘24) focused on something close to my heart - business purpose. Purpose goes beyond profits to address the fundamental question: why does your business exist? With sustainability and social impact climbing up the business agenda, purpose has become the guiding force for businesses striving to leave the world better than they found it.
What Is business purpose?
At its core, business purpose defines the reason a company exists beyond making money. It shapes:
Strategy: aligning long-term goals with societal and environmental impact
Culture: building shared values that motivate and inspire teams
Decisions: informing choices that balance profitability with responsibility
Purpose / vision / mission
Purpose is distinct from vision and mission.
Purpose is your WHY: Why are we here? What’s the reason we exist? It guides you.
Vision is your WHAT: What are we going to deliver to meet our purpose? It inspires (and aligns) you.
Mission is your HOW: How are we going to do that? It drives you.
Purpose effectively serves as the foundation that guides every aspect of a business’s operations and goals.
Purpose matters more than ever
Purpose is not just a moral imperative - it’s also a competitive advantage. Larry Fink, CEO of BlackRock, put it best:
“Purpose is not the sole pursuit of profits, but the animating force for achieving them... Profits and purpose are inextricably linked.”
A clear, purpose-driven approach benefits businesses by:
Attracting new customers and building loyalty with existing ones
Enhancing recruitment, retention, and employee engagement
Differentiating brands in a competitive market
Fostering creativity and innovation
Strengthening resilience and risk management
A business purpose grounded in sustainability addresses the ‘triple bottom line’:
People: promoting equity, inclusion, and positive societal impact
Planet: prioritising environmental stewardship and resource conservation
Profit: ensuring financial viability to support long-term impact
This stakeholder-driven approach replaces the traditional shareholder model, balancing the needs of employees, customers, communities and the environment alongside profitability.
How to define and embed purpose in your business
For purpose to drive meaningful change, it must be found, defined, and embedded across every level of the organisation. Here’s how to start:
Find and define your purpose:
Reflect on the societal and environmental impact your business can make
Engage stakeholders, including employees and customers, to shape a shared vision
2. Embed your purpose throughout your business:
Focus on people by fostering an inclusive and supportive workplace culture
Create a positive impact on society and community through social initiatives and partnerships
Manage your impact on the planet by aligning operations with sustainable practices
3. Inspire and educate:
Share your purpose internally and externally to build momentum and buy-in
Purpose-led leadership inspires teams to contribute to a greater good, fostering loyalty and collaboration
Purpose is not a trend - it’s the future of business. By aligning operations, culture, and strategy with a clear purpose, businesses can create lasting value for all its stakeholders. A purpose-led business not only thrives in today’s competitive landscape but also leaves a legacy of positive impact for generations to come.