A recent report confirms that the public trusts values-driven business more than the government or media even amid economic uncertainty. This gives purpose-driven leadership the chance to stand out by highlighting their organizations’ purposes. Purpose-driven leadership represent steadiness amidst swirling change, which can drive commitment, inspiration, and trust for stakeholders, customers, and employees.
A purpose fuels the corporate social responsibility, but this purpose doesn’t just sit at the top of a letterhead. It affects the organizations shared value in how it makes business decisions, speaks to its employees, and interacts with the community. The social impact of purpose-driven leadership is huge as it becomes a guiding light, illustrating how everyone’s jobs work together to fulfill a goal.
What is a purpose-driven leadership?
A purpose-driven CEO is a leader who believes that businesses have a responsibility to do more than just make money. They believe that businesses should also strive to make a positive impact on society and the environment. Purpose-driven CEOs are motivated by a desire to create a better world, and they use their businesses to achieve that goal.
What makes purpose-driven leadership and the companies they run so attractive to consumers dealing with the realities of global turbulence? For one, they represent steadiness amidst swirling change. A purpose-driven organization has an intrinsic compass that drives it to positively contribute — to its own employees, customers, or society at large. The compass is ESG (environmental, social, and governance) with reliable, predictable, and meaningful. No matter what happens, stakeholder capitalism helps the purpose-driven organization know there’s a North Star that won’t waiver. Conscious capitalism and the values-driven business is powerful and drives commitment, inspiration, and trust for stakeholders, customers, and employees.
Despite these obvious positives, you might already recognize (or be able to intuitively guess) that a purpose-driven leadership at the helm of a purpose-driven organization isn’t always simple. Becoming a recognized, B Corp (Benefit Corporation) giant takes effort and commitment. This is because of the inherent challenges that come from trying to strike a balance between profit and purpose in business.
Steps to purpose-driven leadership
How can you begin to transition to a purpose-driven leadership? There are three steps to begin this journey.
Identify your organization’s higher calling.
If you’re already feeling a little overwhelmed, you’ll be pleased to know that you probably won’t have to reinvent the wheel. Your organization likely already has the threads of a higher calling. Many of your leaders and employees are already moving in that direction. Your job is to recognize that higher calling, name it, and mold it into your purpose.
Stand behind your stated purpose with conviction.
Becoming a purpose-driven leader can take more than a modicum of courage. Your words and convictions matter, especially to workers eager to become purpose-driven employees and proudly carry the “purpose torch.” Some people — including investors and customers — may not agree with your purpose. This is why you must have the strength to be authentic about communicating your vision and never waver from the belief that your company’s purpose must be upheld at all costs.
Make sure all business changes line up with your purpose.
Evolutionary changes will always be necessary as your company moves forward so you can remain competitive. Before implementing a change, though, make certain that it’s consistent with your purpose. Remaining consistent is critical because it helps people feel comfortable with the changes they’re being asked to make.
There’s never been a more important moment for you to transform yourself into a purpose-driven leader. Not only will your efforts help you rally people around you, but you’ll set the stage for your company to become more profitable in the years to come.
What are the benefits of being a purpose-driven CEO?
There are many benefits to being a purpose-driven CEO. These benefits can include:
- Increased employee engagement and motivation.
- Improved customer loyalty and satisfaction.
- Enhanced brand reputation and trust.
- Greater financial performance.
- A more meaningful and fulfilling career.
- How can I become a purpose-driven CEO?
Rules of purpose-driven leadership
There are a few rules to follow to become a purpose-driven CEO. These include:
- Define your company’s purpose. What is your company’s reason for being? What positive impact do you want to make on the world?
- Align your business strategy with your purpose. Make sure your company’s decisions are aligned with its purpose.
- Communicate your purpose to your employees. Make sure your employees understand your company’s purpose and how they can contribute to it.
- Hold yourself and your employees accountable. Make sure you are all living up to your company’s purpose.
- Measure your progress. Track your company’s progress in achieving its purpose.
What are some examples of purpose-driven CEOs?
There are many examples of purpose-driven CEOs. Here are a few:
- Paul Polman, former CEO of Unilever. Polman led Unilever to become a global leader in sustainability.
- Marc Benioff, CEO of Salesforce. Benioff believes that businesses should use their power to make the world a better place.
- Mary Barra, CEO of General Motors.Barra is committed to making GM a leader in electric vehicles.
- Satya Nadella, CEO of Microsoft. Nadella has transformed Microsoft into a more purpose-driven company.
- Hamdi Ulukaya, CEO of Chobani.Ulukaya is a refugee who has built a successful yogurt company that is committed to social res
