Profiting on purpose: creating a master narrative

Abstract

Purpose The purpose of this paper is to examine the origins of and current practices in corporations seeking to define themselves as “purpose-driven”. The literature suggests that consumers, in particular Millennials, are attracted to companies that define themselves in this way both in terms of their buying behaviors and as places they would wish to work. The author also wanted to examine whether this trend represented a significant departure from previous activities in corporate citizenship, corporate social responsibility, sustainability or the triple bottom line. Design/methodology/approach This viewpoint reviewed the history of corporate philanthropy and social commitments from the 1880s to today to identify trend waves in this category. The author then examined some current examples of “purpose-driven” behavior to identify best practices. Findings The author found that there is considerable confusion in the marketplace about what constitutes best practices in corporate citizenship. The author also found that the outputs from preceding waves of corporate citizenship have created atomized pockets of similar activities in individual companies that either overlapped or were at odds with each other. This analysis suggested that there were four key requirements for companies trying to maintain a purpose-driven corporate brand: long-term commitment, authenticity, that they be employee-driven and be based on collaboration. Research limitations/implications The viewpoint was based on secondary source material and did not involve any primary research. Practical implications By identifying some core principles for purpose-driven activity, the viewpoint will help companies create and effectively maintain a master narrative. Social implications This review of corporate social responsibility will also create framework for thinking about the appropriate balance between the social and profit-driven motives of today’s corporations. Originality/value The author believes that this viewpoint is the first to examine the entire spectrum of corporate social commitment from both a historical and contemporary perspective.