Too many well-intentioned consultants and business leaders conflate organizational purpose with environmental sustainability, corporate social responsibility, and other noble causes. They do the same with employees’ life purpose and their purpose at work, in hopes of aligning the two. And they often overlook the distinction between the organization’s mission, vision, or purpose and the higher purpose of one’s job role.
In this 3-part blog series, I will attempt to demystify these misunderstandings, starting with the first inaccuracy: organizational purpose is equivalent to environmental sustainability, corporate social responsibility, and other causes.
Here’s some of the misguided language I’ve seen used in corporate literature offering counsel on developing a purpose-driven workforce:
In an article about leveraging a company’s purpose to improve long-term business growth, readers were advised that employees should become active contributors to the organization’s social purpose. This was the only place in the article where an organizational purpose was referred to as a social purpose—as if the two terms could be used interchangeably. That’s incorrect. An organization’s purpose, its raison d’être, is its reason for being. It describes why the organization exists. And this may or may not have anything to do with addressing broader societal challenges.
A second article recommended that companies position themselves as socially responsible or environmentally conscious in order to convey to employees, customers, and stakeholders that they are purpose-driven. Again, an organization can be purpose-driven without positioning itself as socially responsible or environmentally conscious. This doesn’t mean the company is not socially responsible or environmentally conscious, it simply means that these attributes have nothing to do with its organizational purpose. That’s fine. It can still be a purpose-driven company.
In the 21st century, there is an expectation that corporations, once aloof from societal issues, take a stand on matters that are relevant to their purpose and values. Regardless of whether they are known for being socially or environmentally progressive, boardrooms are embracing environment, social, and governance (ESG), corporate social responsibility (CSR), and diversity, equity, and inclusion (DEI) programs.
As prevalent as these initiatives are today, it’s important not to confuse them with organizational purpose. By blending these priorities, their clarity and impact diminish. When stakeholders can’t distinguish between an organization’s purpose and its stance on environmental issues or inclusion efforts, confusion ensues. It’s more effective to clarify these distinctions and, in alignment with corporate purpose and ideals, capitalize on the unique contributions that ESG, CSR, and DEI programs make to the organization’s culture and success.
To clarify the difference between them, let’s start with some definitions and examples:
Organizational purpose is an organization’s existential question, its reason for being.
Examples:
- Kroger’s purpose is to feed the human spirit.
- Target’s purpose is to help families discover the joy of everyday life.
- General Mills’ purpose is to make food the world loves.
Environment, social, and governance (ESG) is the quantifiable measure of a company’s sustainability and societal impact, using metrics that matter to investors.
Examples: Greenhouse gas (GHG) emissions and climate risk, pay equity, diversity, and inclusion, ethical behavior and anti-corruption.
Corporate social responsibility (CSR) is defined as a form of business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically oriented practices.
Examples: Volunteering, helping employees advance careers, donating products or services.
Diversity, equity, and inclusion (DEI) is a term used to describe policies and programs that promote the representation and participation of different groups of individuals, including people of different ages, races and ethnicities, abilities and disabilities, genders, religions, cultures, and sexual orientations.
Examples: Develop sponsorship programs to provide opportunity and growth to minorities and marginalized groups, establish concrete, actionable, and quantifiable DEI goals that will advance the workforce representation of historically under-represented groups, and devise a means for measuring and reporting on performance.
For decades, corporations have articulated a purpose and corporate ideals in the form of mission, vision, and purpose statements and core values or principles. And, in truth, whether or not they define it, communicate it, or deliberately connect it to employees’ job roles, every organization has a purpose. There is a reason that it exists. Not so with ESG, CSR, and DEI strategies. These relatively new programs only exist if they’re developed, staffed, and funded.
As the landscape continues to evolve toward more organizations becoming increasingly involved in issues that tug at their values and matter to employees, customers, and investors, we will see more evidence of their impact. While ESG, CSR, and DEI programs are vital and inextricably linked to corporate values and direction, there is a difference between these strategies and organizational purpose. To conflate them is to add confusion and dilute their desired impact on your organization and its stakeholders.
Thanks for reading. Check back in the coming days for Part 2 in the series where I will clarify the difference between employees’ life purpose and their purpose at work.
