Purpose-Driven Companies Reap Rewards of Success

 
 
By Dennis McCafferty  |  Posted 04-25-2014 Email Print this article Print
 
 
 
 
 
 
 
 

When CIOs and other executive leaders convey a strong sense of purpose behind their company's strategies, they help drive their organization toward a wide range of positive, revenue-influencing outcomes, according to a new survey from Deloitte. The accompanying report, "Culture of Purpose: Building Business Confidence; Driving Growth," reveals that businesses which rank high on purpose-based qualities are better positioned for brand strength and customer loyalty, revenue growth, and agility amid disruptive market changes. Their employees are more likely to buy into corporate strategies, while placing greater trust in the capabilities of their leadership team. In other words, expressing commitment to admirable values is more than the right thing to do. It's the smart thing to do. "Evidence is mounting that focusing on purpose rather than profits is what builds business confidence," says Punit Renjen, chairman, Deloitte LLP. "This is a critical finding—and underscores the significant impact a 'culture of purpose' can play in fostering a thriving business community." More than 1,050 U.S. executives and employees took part in the research. For more about the survey, click here.

 
 
 
  • Top Perceived Purposes of Organizations

    To provide business services and products that have a meaningful impact on customers: 89%, To deliver business services and products that benefit society: 84%, To ensure employees receive education, experience and mentorship benefits: 77%
    Top Perceived Purposes of Organizations
  • Positive Vibes

    91% of execs and employees at organizations with a strong sense of purpose feel their company will maintain or strengthen its brand reputation and customer loyalty, as opposed to 49% of those at organizations without a strong sense of purpose.
    Positive Vibes
  • Solid ROI

    83% of those at companies with a strong sense of purpose say their organization will deliver strong growth and returns, compared to 49% of those at businesses without a strong sense of purpose.
    Solid ROI
  • Forward Movement

    83% of these respondents say their company will stay ahead of industry disruptions, while just 42% of those at organizations without a strong sense of purpose agree.
    Forward Movement
  • Standard Setter

    80% say their organization will remain or emerge as an industry leader, as opposed to 48% of those at businesses without a strong sense of purpose.
    Standard Setter
  • Meaningful Edge

    79% say their organization will outperform the competition, compared to 47% of those at companies without a strong sense of purpose.
    Meaningful Edge
  • Long-Term Commitment

    92% say their clients have long-lasting relationships with their company, while 69% of those at organizations without a strong sense of purpose feel this way.
    Long-Term Commitment
  • Vote of Confidence

    81% say their stakeholders trust their company's leadership, compared to just 54% of those at organizations without a strong sense of purpose.
    Vote of Confidence
  • Intrinsic Value

    78% say their work colleagues share in the organization's culture and beliefs, as opposed to 32% of those at businesses without a strong sense of purpose.
    Intrinsic Value
  • Customer Service

    38% of respondents at organizations with a strong sense of purpose say their company's top priority is making a positive impact on clients. But just one-fifth of those at businesses without a strong sense of purpose agree.
    Customer Service
  • Short-Term Thinking

    45% of those at organizations without a strong sense of purpose say meeting short-term financial goals is their company's top priority, while just 16% at businesses with a strong sense of purpose agree.
    Short-Term Thinking
 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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