2014-04-07

Co.Exist

What's Going To Make A Company Grow? Being A Purpose-Driven Business

Employees and executives feel more confident about the future of their companies when the business model involves more than just the bottom line.

Work for an organization with a strong sense of purpose? Your company is probably more confident in its prospects for future growth, and as a result, invests heavily in initiatives that lead to long-term growth. That's the takeaway from this year's annual Deloitte Core Beliefs & Culture survey, an annual report designed to examine workplace culture.

The report—based on a survey of 1,053 executives and employees with full-time jobs in organizations with over 100 employees—found that 82% of respondents working at an organization with a strong sense of purpose believe that their organization will grow over the next year. In comparison, just 48% of respondents working for companies without a sense of purpose are hopeful about growth prospects.

According to respondents, a commitment to top-notch qualities and services is the main driver of confidence for purpose-driven companies. For all other companies, it's all about the bottom line. But a focus on the immediate bottom line—without a purpose attached—isn't necessarily a good thing, especially for employees: respondents working for purpose-driven organization report higher levels of employee engagement at their companies, as well as access to more tools and resources for career training and development.

The same goes for investors. Some 74% of employees and executives at purpose-driven companies say that investors are confident in their growth over the next year, compared to 52% for other companies. And overall, respondents at purpose-driven companies were more optimistic about their organization's ability to stay ahead in the future (83%) in comparison to other organizations (42%).

Last year, the survey came up with similar findings. Some 90% of respondents who believed their organization had a sense of purpose reported a strong financial showing in the business over the past year.

[Image: Abstract via Shutterstock]

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3 Comments

  • Glenn Geffcken

    It's great to see more research on this, as there has been much anecdotal evidence for sometime showing a strong relationship between values and purpose, and greater financial results. The next step, of course, is to actually move the needle on shifting culture in the direction of deeper more meaningful values and purpose.

  • Can you please clarify how you define a purpose-driven company for the purpose of this study? Specifically, does being a purpose-driven company mean that all employees are well aware of the purpose? Or could the purpose just reside in the minds of some people in the top management alone?