A clear corporate purpose is key to outperforming rivals

CURRENT global realities have changed the game. Today, the corporate capacity for innovation and transformation defines its ability to thrive. Yet, transformation is beyond just better products and services. An evolving view of the corporation's role increasingly emphasises the corporation as a partner for societal well-being, and that has sparked greater dialogues around the notion of a corporation's purpose.

What's in a purpose? A strong purpose provides a "North Star" to guide the business and its people. It's a corporation's clear reason for being that serves to set strategic vision and decision-making. It is the raison d'etre of the organisation - the most important reason for it existence.

Research has shown that organisations with a clear purpose that is embraced by leadership, management, employees, vendors, customers and the market alike have a tendency to outperform competitors. Purpose-led brands are more successful in acquiring and retaining customers. This is backed by behavioural science: People buy things that make them feel good about themselves and do business with those they trust.