‘Purpose’ has recently gained huge momentum – influencing the thinking of businesses, investors, governments and regulators. In a fragmented world, characterised by mistrust and division, there is a growing acceptance that businesses need to be part of the solution, not part of the problem. Businesses can respond by understanding and delivering on their purpose in society. Those that do so will see faster growth, more engaged employees and improved stakeholder relations.
There’s growing acceptance that purpose is a commercial imperative amid evidence of a strong link between purpose-driven companies and strong financial performance. In order to thrive in the short and long term, organisations need to define their ambition for purpose, then articulate, demonstrate embed and track it.
Purpose is an organisation's reason for existing beyond just the financial. It sets out why the organisation matters, building on its core, differentiating capabilities, and articulates the value of the organisation to wider societal stakeholders.
A corporate purpose should create value for both shareholders and stakeholders, and be the means by which a business generates profit. It is core to what an organisation does, and key to the business’ strategy and operating model.
“We know that talking about our purpose is one thing, living up to it is another. It should inform everything we do, especially in times of change and uncertainty.”
We believe there are five key areas of value that companies successfully engaging with purpose are uncovering – in addition to the overarching societal benefits:
Improved decision making
More motivated employees
Improved customer engagement & brand
Better relations with investors
Managed regulatory risk
Define purpose beyond the financial, articulate it to stakeholders and understand the value it can unlock when embedded in strategy
Create an aligned, shared vision for purpose that delivers value through a motivated, productive workforce and wins the battle for talent
Measurement and articulation of impact in a way that resonates with investors and other stakeholders – for corporates and for funds
Where purpose acts as a ‘north star’ for a successful change programme – guiding key decisions
Purpose protecting value of a deal by driving strategic and cultural alignment, and informing non-financial (especially ESG) metrics
As required by regulators, capital markets and other stakeholders
COVID-19 has thrust purpose into the spotlight, as the relationship between companies, government, society and the public is critical for our clients, and there’s intense expectation on businesses to be part of the solution to the challenges arising from the pandemic.
This document advises businesses how to use purpose to navigate the crisis, and to use it as a platform for long-term transformation, building a business for the future with purpose acting as a guide for key decisions.
At PwC we have been on our own purpose journey since 2016. Our purpose is to "build trust in society and solve important problems".
Guided by our purpose, we have been transforming the way we work and deliver our services to future proof our business.
We focus on outcomes in the key areas where we feel we can make a positive impact on society. We do this through the work we do with our clients, and how we run our core operations, our supply chain and our community engagement activities.
For more information please visit Our Purpose page
Our team of purpose experts have experience providing strategic advice to senior leaders to help organisations realise the value of purpose. They can also draw on further multi-disciplinary subject matter expertise across PwC.
