Most organizations have a bottom-line purpose, after all, how can business get done without keeping the lights on? And yet, we know that a purpose-driven culture is what’s best for the bottom line. In fact, according to a recent study by IBM and the National Retail Federation, consumers who choose products and brands based on alignment with their values, represent the largest market segment at 44%. Customers are even willing to pay a premium for those products and services, almost 10% more based on a recent PWC study, even during heavy cost-of-living and inflationary concerns.
True purpose is built from the ground up. It must serve as the foundation that guides every action, or it risks becoming a theoretical aspiration. Read on to learn how leaders can operationalize purpose and build culture systems that drive authentic and real impact.
What defines a purpose-driven work culture?
A strong purpose-driven culture aligns people, processes and impact by helping to connect daily work to larger meaning. A 2024 Deloitte report found that 90% of all Gen Zers and millennials stated that having a sense of purpose at work is important for their job satisfaction and well-being. This same report shared that millennials and Gen Zers want to have a positive impact on society through their professional work.
So, it should come as no surprise that companies with clear purpose see higher employee satisfaction and stronger stakeholder trust. However, there’s a big difference between superficial commitment and action. Stated purpose is a reflection of the mission or values an organization publicly declares, often through corporate culture statements and activities as well as marketing, vision statements and leadership messaging. In contrast, lived purpose is how those values are embedded in everyday decisions, behaviors and business practices.
Leveraging a corporate social responsibility (CSR) software is an efficient way to embed purpose at work and begin building an engagement culture anchored in purpose. An industry-leading CSR platform will provide multiple ways for employees to participate and have the flexibility to engage with opportunities via both desktop and mobile. Opportunities for employees to participate in purpose programs can include:
- Making a planned or disaster-response donation.
- Signing up for group-volunteer events or recording personal volunteering time.
- Engaging with and recording micro-actions like taking public transportation to work or shifting to a re-usable water bottle.
Empowering your employees with flexible pathways is an effective way to help embed moments of purpose into their daily routines and sustain long-term participation.
The business impact behind purpose-driven work
The 2023 Payback on Purpose Report shows purpose-driven companies do better financially with a 13.6% compound annual growth rate (CAGR) over 20 years — three times higher than competitors and five times higher than the S&P 500. And in times of crisis, Harvard Law School found companies scoring highest on purpose outperformed bottom-quartile firms in total shareholder return (TSR), further signalling that purpose correlates with long-term financial stability.
Purpose attracts and retains top talent
The 2024 Global Talent Shortage Report found that 75% of global employers had difficulty finding skilled talent for open positions. The best and brightest are demanding more from work, and not just more money or more flexibility; more of a reason to work. With active purpose programs contributing to corporate culture and talent brand, companies can not only attract top talent, they can also retain them. The Benevity Talent Retention Study found there was 52% lower turnover among newer employees when they participated in purpose programs.
Why leaders are the catalysts of purpose-driven culture
Culture starts at the top and leadership modeling sets the organization’s tone and trust. A true purpose-driven culture includes leadership alignment and action.
Key leadership behaviors should include: clarity, empathy, accountability and strategic alignment between business and purpose goals. Leaders should be committed to connecting purpose into key performance indicators (KPIs) by translating the organization mission, vision and purpose into how success is measured.
Purpose-driven leadership builds credibility with employees and external stakeholders alike. By visibly upholding the company’s purpose, leaders can build stakeholder and customer credibility, which cultivates loyalty and sustains long-term, value-driven relationships.
How to create a purpose-driven culture
Clarify and communicate purpose
Building a purpose-driven culture starts with a clear, compelling purpose that employees and stakeholders can connect with. And it’s integral to communicate that purpose in a way that resonates across the business. This involves translating lofty mission statements into everyday language, connecting purpose to decisions and co-creating purpose statements with employee input to ensure authenticity and shared ownership.
Embed purpose into systems
Integrating purpose into systems allows purpose to become a part of how work gets done everyday. This includes integrating purpose into performance reviews, onboarding and recognition programs. Additionally, companies can align volunteering and giving initiatives with organizational values using CSR software.
Measure what matters
Measuring action is key to turning purpose into tangible results. Leverage dashboards and narrative reports to track engagement, participation and community impact metrics to understand and communicate the difference your initiatives are making. Keep the momentum moving forward by sharing impact reports internally and externally to celebrate successes, reinforce purpose and inspire continued action.
Reinforce continuously
Reinforcing your purpose helps keep a spotlight on the meaningful impact taking shape across the organization. Creating new opportunities to participate in purpose. Celebrating moments of impact. Showing up for community events and activities. Leaders need to both model and expect purpose-driven behavior and spotlight teams who bring the company’s values to life.
Build credibility through action
Building authentic purpose can only be done through consistent action. Organizations earn trust when they show up, activate their employees and consider purpose as part of everyday decisions, investments and accountability.
Leadership teams should be prepared to:
- Set clear goals
- Measure outcomes
- Transparently report on progress and setbacks
By backing words with visible action and aligning leadership incentives, operations and culture to shared values, companies move from performative purpose to authentic impact. In other words: let your actions speak as the proof of your commitment to purpose.
Connecting purpose to the employee experience
Employees are more likely to stay and advocate when they feel their work matters.
CSR programs, volunteerism and employee resource groups (ERGs) connect individuals to impact by providing structured opportunities to align personal values with organizational action, creating a sense of purpose and belonging.
CSR teams and employees have expectations for convenience and user-centric processes. Intuitive tools that make giving and volunteering easy focus on streamlining the process for both individuals and organizations through features like self-scheduling, automated communication and integrated donation processing. Utilizing technology for employee mobilization, the process of engaging and motivating employees to align their efforts with organizational goals, can help motivate everyone to go above and beyond their standard work role.
Future-proofing culture through purpose as a strategic advantage
The same Harvard Law School study found that companies that scored high on corporate purpose metrics outperformed their low-scoring counterparts on common measures of financial performance, market valuation and shareholder value creation. A purpose-driven culture fuels innovation by motivating teams around meaningful goals. It can also provide a much needed north star during turbulent times and uncertainty.
Commitments to purpose can help build trust with customers and stakeholders alike. Investments in purpose programs support long-term stability by creating opportunities to develop and maintain trust and confidence across a wide variety of stakeholder groups.
Turning purpose into culture, and culture into lasting impact
Corporate purpose goes beyond business purpose. It creates value to society, impacting people, communities and the planet. Successful, growth-oriented companies today integrate both, creating true, measurable enterprise value through meaningful impact. It’s a multiplier of performance that supports true enterprise impact, driving social benefits alongside business outcomes like innovation, growth, retention and trust.
Grow your purpose and performance with the Benevity Enterprise Impact Platform.
