What are the Benefits of being a Purpose Driven Organisation?

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Being a purpose driven organisation is not just a statement on a website, in marketing material or in a mission statement. In a purpose driven organisation, the purpose is integrated into the organisation’s culture. It is reflected in its policies, practices, and relationships with stakeholders. An organisation’s purpose is the reason for its existence and answers the question “why does the organisation exist?”.

There is a growing realisation among successful companies that the idea that the purpose cannot be about making a profit or on shareholder value. They understand that making a profit (and adding shareholder value) is the result of being purpose-driven. Profit is not the purpose in itself.

Purpose driven organisations perform better, make more money, have more engaged employees and more loyal customers. This is because they are better at innovation and managing change.


People are more likely to succeed when they care about the outcome. The same is true for businesses (since they are made up of people). A purpose driven organisation gives people the sense of being part of something greater than themselves.  This can lead to high levels of engagement and high levels of creativity. It can also improve of cooperation where people from different areas of the business are more willing work together to achieve a common purpose.  These outcomes are very powerful drivers that help the organisation achieve its goals and vision.

This goes against the assumption made by many leaders and managers that their people are primarily focused on money. While do work to make money to create or sustain a certain lifestyle form themselves and their families, they need more than that. Once their financial needs have been met, people tend to be more motivated by intrinsic meaning and the sense that they are contributing to something worthwhile. This is where the organisation’s purpose overlaps with personal purpose.

Decision Making

A purpose driven organisation streamlines the way decisions are made and ensures that everyone is pulling in the same direction. The purpose acts like a compass to direct the decision-making process and the actions that people take. Without the shared sence purpose, organisations tend to run in circles, never making forward progress but always rehashing the same discussions.  In purpose driven organisations, they ask “does this decision fit with our purpose?”.  This will ensure that decisions are made that are aligned with purpose and values.

It is important to note that these decisions are not always going to be positive.  They may result in not doing something. A purpose driven organisation will make decisions that may not benefit it in the short-term. They will make the decision base on what it right and in doing so are more likely to succeed in the long-term.

Competitive advantage

By prioritising purpose and aligning their operations and decisions with their values, a purpose driven organisations can create a competitive advantage. This is achieved by  building a strong brand reputation, attracting and retaining top talent, driving innovation, fostering customer loyalty, and promoting sustainability.

In addition, purpose is something that is discovered, not created. A purpose driven organisation understand that it has a reason for it existence which is much more than just to make money. The trick is discovering what that is and ensuring that it drives the values and culture of the organisation. When this happens it is nearly impossible for competitors replicate. This means that being a purpose driven organisation can create a competitive advantage that is unique and sustainable over time.


In summary, being a purpose driven organisation can bring many benefits. Some of these include the following:

  1. Increased employee engagement and satisfaction. When people understand the purpose of their work and how it contributes to a larger cause, they are more likely to feel a sense of purpose and fulfilment in their jobs.
  2. Attract and retain top talent. In a purpose driven organisation, people are more likely to stay with a company. This is because they feel a connection to and whose values they share. By having a clear purpose, they can attract like-minded individuals who are passionate about what the company stands. As a result, they and are more likely to be motivated to make a difference.
  3. Improved brand reputation: A clear sense of purpose and values can help organisations establish a positive brand image. It can also create a strong reputation in the eyes of customers, stakeholders and the wider community.
  4. Better decision making. Having a clear purpose helps purpose driven organisations make decisions that are aligned with their values. This not only leads to better outcomes but also helps to build a culture of integrity and transparency.
  5. Increased resilience. A purpose driven organisation can be more adaptable and resilient. This is because they have a clear sense of direction and a strong culture to support them through challenges and change.
  6. Improved innovation. When people are motivated by a sense of purpose, they are more likely to come up with creative solutions to problems and drive innovation. This can lead to new products, services, and business models that create value for customers and drive growth. As a result, a purpose driven organisation tends to stay ahead of their competition and remain relevant in a rapidly changing business environment.
  7. Increased customer loyalty. When customers believe in what a company stands for, they are more likely to become repeat customers and advocates for the business. This is because the values and ethics of the business attract customer with similar beliefs. A purpose driven organisation is likely to attract likeminded customers and building long-term relationships with them a business can create a competitive advantage over companies that are solely focused on profit.

Finally, research has shown that purpose driven organisations have highly engaged and motivated people, more satisfied and loyal customers, and fulfilled stakeholders.  They see themselves as market leaders with a brighter future than their competitors. In addition, they indicate that they are reaping major rewards for their efforts. In short, they are more efficient, focused and driven and all of this had a positive impact on the bottom line.


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