Today, investing based on environmental, social and governance (ESG) factors has become a cultural and political battleground. But amid all the fuss, the closely related idea of corporate purpose continues to quietly resonate. A purpose for existence aligns a company, engages its stakeholders, and is at the heart of any profitable business. When the purpose is well developed and articulated, it becomes an integral part of a company’s culture.
Companies and the corporate media adopted the idea of the target well over a decade ago. Business administration students and young employees were already attuned to each other. It was what they had been looking for all along: a goal and a paycheck. Now, in the context of a tight job market and intense competition for the best and brightest, the discussion of purpose is important in job searches and interviews. Employers respond accordingly, and the cycle continues.
Of course, a passion for the goal is not enough. Sean Cady, VF Corp’s vice president of global sustainability, responsibility and trade, says young people often believe passion is rewarded rather than delivering results that create business value. He says VF is “performance-oriented and goal-oriented,” but added that there has to be a balance.
Similarly, I remember a pharmaceutical director talking to our MBA students in Georgetown about the distribution of antimalarial 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 first or second year. They are looking for analytical thinking, business aptitude and problem solving skills. A sense of purpose may not be paramount right away.
However, the goal is powerful, not only among younger workers, but also among workers of all levels. Katya Andresen, Chief Digital and Analytics Officer at Cigna, says in her experience “purpose is the top driver of engagement across almost all cohorts and consistently emerges in employee surveys as a critical factor across the board. Now that burnout is a persistent problem, a goal can align us with something bigger than ourselves and restore our sense of purpose and resilience.”
After graduation, I keep in touch with my business students in Georgetown. One of them told me: “I have a student debt. I want to pay it off and earn a good income. But I also want to stay involved. I don’t want to lose my sense of purpose.”
And he’s not the only one. Here are some examples of Georgetown business alumni (my former students) who have a goal in mind:
- “I am lucky and thankful that my dream job at my company pays me to do what I do best and also to make a change in the world…I recently had a son and I have been thinking about how I further my cause by showing him how I can make a positive change through my own actions.”
- “I work with a global team to build our sustainable finance capabilities as we support our clients on their journey to net zero. It is the sense of purpose and the impact on more than just our bottom line that keeps us engaged and enables us to do a good job.”
- “What really connected me was that the brand was rooted in writing and writing purpose. I have been able to create brand building marketing programs (…) to support literacy and writing education for children. I am enthusiastic about my work.”
- “I work in a cross-functional supply chain team that includes sustainability, diversity, governance, marketing and stakeholder engagement. In my role, I am able to…ensure that these efforts align with our broader business objectives (…) I am pleased to work for an organization that regularly discusses career plans.”
- “I focus on corporate reputation and community involvement. I think young people entering the job market are increasingly looking for purpose… in different ways. The impact-oriented group (wants to) shape the corporate culture and strategic priorities. They need a goal that is central to their core tasks and understand that this is a matter of patience.”
I admire these young tigers and am happy that they will become the leaders of tomorrow. The goal is still powerful. Companies recognize it, and so do business schools. We are on track.
Bill Novelli is a professor emeritus at Georgetown University’s McDonough School of Business. He was CEO of AARP and Porter Novelli, the global PR agency. His latest book is Good business: the way to talk, fight and win to change the world.
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