Today, investing based on environmental, social, and governance (ESG) factors has become a cultural and political battleground. But amid all the furor, the closely related idea of corporate purpose quietly continues to resonate. A purpose for being aligns a corporation, appeals to its stakeholders, and is core to any profitable business. If it's well developed and articulated, purpose becomes integral to a company’s culture.
Corporations and the business media took up the idea of purpose well over a decade ago. Business students and young employees were already attuned. It’s what they had been looking for all along–purpose and a paycheck. Now, in the context of a tight labor market and fierce competition for the best and brightest, the discussion around purpose is important in job searches and interviews. Employers respond accordingly, and the cycle continues.
Of course, a passion for purpose isn’t enough. Sean Cady, the VP of global sustainability, responsibility, and trade at VF Corp, says young people often believe passion is what’s rewarded rather than delivering results that provide business value. He says VF is "performance-led and purpose-driven," but added that there has to be a balance.
Similarly, I recall a pharmaceutical executive speaking to our Georgetown MBA students about distributing anti-malarial drugs in Africa. A young woman said, "I want to work for you and save the world." He replied, "Saving the world is good, but I need people who understand supply chains."
Companies often recruit interns early, at the end of their freshman or sophomore years. They are looking for analytical thinking, an aptitude for business operations, and problem-solving skills. A sense of purpose may not be immediately paramount.
However, purpose is powerful, not just among younger workers but also among employees of all levels. Katya Andresen, the chief digital and analytics officer at Cigna, says that in her experience, "purpose is the top driver of engagement from nearly all cohorts and consistently shows up in employee surveys as a critical factor across the board. With burnout a stubborn problem, purpose can align us with something bigger than ourselves and restore our sense of meaning and resilience."
I stay in touch with my Georgetown business students after graduation. One of them told me, “I have student debt. I want to pay it off and make a good living. But I also want to stay engaged. I don’t want to lose my sense of purpose.”
And he’s not alone. Here are some examples of Georgetown business alumni (my former students) putting purpose to work:
- "I’m lucky and grateful to have my dream job with my company paying me to do what I’m good at and also to make a change in the world…I recently had a son and I’ve been thinking about how I can advance my purpose by showing him how to make a positive change through my own actions."
- "I work with a global team to build out our sustainable finance capabilities as we support our clients in a journey towards net zero. It’s the sense of purpose and the impact on more than just our bottom line that keeps us engaged and allows us to do good work."
- "What really connected me was the brand being rooted in writing and writing purpose. I was able to create brand-building marketing programs (…) to help support literacy and writing education for kids. I am excited about my job."
- "I work on a cross-functional supply chain team that includes sustainability, diversity, governance, marketing, and stakeholder engagement. In my role, I’m able to…make sure that these efforts are tied to our wider business goals (…) I’m happy to be at an organization that talks about career plans regularly."
- "I’m focused on corporate reputation and community engagement. I think young people joining the workforce are increasingly seeking purpose…in distinct ways. The impact-focused group (wants to) shape the corporate culture and strategic priorities. They need purpose to be central to their core work responsibilities and understand this is a long-term play."
I admire these young tigers, and I’m pleased they are becoming the leaders of tomorrow. Purpose is still powerful. Companies recognize it–and so do business schools. We’re on the right track.
Bill Novelli is a professor emeritus at the McDonough School of Business at Georgetown University. He was CEO of AARP and at Porter Novelli, the global PR firm. His latest book is Good Business: The Talk, Fight, Win Way to Change the World.
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