The business case for purpose

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Around the world, the business environment is in a permanent state of disruption. Today

This did not surprise us. At EY, when we began our purpose-led transformation to “build a better working world,” we experienced firsthand the same benefits and barriers explored here. And we have seen these as well when supporting our clients’ transformation journeys. Given the strong sentiment that purpose is important and the clear benefits it seems to accrue, it is curious that purpose is utilized by only a minority of companies as a driver of strategy and decision-making. As the survey findings suggest, this is due not only to external issues, such as short-term pressures from investors, but also to internal issues such as insufficient leadership commitment and misaligned performance metrics. This raises many interesting questions, not the least of which is why and particularly how some organizations are better able to strategically integrate and capitalize on purpose than others. We believe that better questions lead to better answers. With our community of global leaders, Beacon will continue to advance research, share stories, and amplify a growing dialogue on how businesses are redefining success to create sustainable value. We invite you to connect with us at ey.com/beacon—and to join the movement of those on the leading edge of transforming the working world.

more than ever, companies are searching for a new genetic code that will help them continuously evolve—to survive and to thrive. The EY Beacon Institute was launched in response to this transformation imperative. A community of global executives, entrepreneurs, academics, and thought leaders, the Beacon Institute is advancing the transformation of the working world, redefining what it means to be a successful company in the 21st century. A tie that binds our community is a shared understanding that there is a new leading edge: Those companies able to harness the power of purpose to drive performance and profitability enjoy a distinct competitive advantage. Laden with many meanings, the core insight about this notion of “purpose” is that meaning matters—not just in an abstract sense, but in terms of today’s business metrics. In the interest of advancing the science of purpose, EY Beacon Institute teamed with Harvard Business Review Analytic Services, surveying global business executives about the extent to which purpose is utilized by their organizations—and, importantly, the impact that it has upon their ability to grow, innovate, and transform. We found a very high level of consensus among these executives that purpose matters, and a widespread belief that it has positive effects on key performance drivers. The survey also demonstrates that companies who clearly articulate their purpose enjoy higher growth rates and higher levels of success in transformation and innovation initiatives.

Valerie Keller Global Lead, EY Beacon Institute

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