Purpose-driven Leadership

Abstract

A sustainability ambition begins with company purpose, culture, and values. Purpose is the one thing that a company can do better than anyone else that brings value to society; a cause greater than profit. A purpose is strong when it feels true, reflects the culture of the organization, and builds on the company’s core existence. When purpose also illuminates how the company can contribute to society, transformation is possible. A purpose-driven CEO sets the tone at the top, evangelizes the cause, and builds a coalition of the willing. Purpose-driven companies are more likely to attract talent, customers, and investors, and often outperform the stock market. A number of companies exemplify purpose in action, like Swedish food waste startup Karma, aiming to be the first zero food-waste generation along with long-established Scania, Electrolux, and Ericsson. When purpose is treated like a business asset, it is the key to change and transformation.