REVISIT COMPANY GOALS

Pallavi Pinakin explains why enterprises must benefit all stakeholders

It’s been a tough year for businesses. And while things are looking up now, the path ahead is still crisscrossed with key challenges. When employers are struggling to keep their heads above water, do they really have the luxury of time to focus on soft aspects such as purpose?

In reality, purpose isn’t a luxury – rather, it’s a crucial factor for any business that wants to survive this extended crisis and thrive in the post-COVID era.

AT THE CORE Vision and purpose are the pillars upon which organisations come to life, and flourish. As the mainstay of a company’s work culture, purpose infuses day-to-day activities with meaning and motivation. When we’re able to connect our roles and responsibilities with the bigger picture, we feel inspired at the start of the workday and satisfied at the end of it.

Renewing purpose in the workplace unlocks fresh reserves of energy and passion. In this way, it is also an antidote to mental fatigue and burnout – two widespread issues during the pandemic.

AN ANCHOR The chaos of the past year has upturned several well-established structures and processes in organisations. In this context, returning to a common purpose offers employees an anchor through which they can rebuild a sense of stability, coherence and unity among themselves.

In its absence, company ranks will continue to face fragmentation and confusion – conditions under which it’s nearly impossible to deliver one’s best work. With an underlying purpose in place, team members can set shared goals that are clearly aligned with the company’s high-level objectives.

PEOPLE FIRST The pandemic has also brought other important questions to the fore. It’s easy for corporates to be benevolent in good times but how do you respond when things are hard? In the face of industry upheaval, some businesses made panic-stricken choices such as mass layoffs while others offered increased support to team members.

Without a clear set of values and a common purpose to rally around, there is a tendency to make decisions through a short-term lens instead of taking a long-term view.

Businesses that put profits first and people last are likely to see a negative impact once the world returns to normalcy. At present, workers have limited job opportunities because of the economic slowdown so they will stay with their current employers.

But when the markets open up, we can expect an exodus from companies that prioritised shareholder value at the cost of their employees. Top talent will probably be the first to go since they will have the most number of opportunities to switch jobs.

SENSE OF PURPOSE The past year has pushed companies very hard… some to breaking point. But a world in flux also offers the chance for reinvention. This is the perfect moment for employers to ask themselves what they want their enterprises to be in the next phase, and how they can be – and do – better.

Shifting from panic to purpose is key to creating forward momentum and future success. So get back on track and rewrite
the next chapter in your business with a fresh sense of purpose.

MUTUAL AIMS As you work towards reactivating corporate purpose, it would be helpful to tune into recent discussions on this topic.

Historically, a corporation existed primarily to benefit shareholders. However, another operating principle has been evolving in the past couple of decades and in 2019, Business Roundtable in the US released a new statement on the purpose of a corporation. This was signed by 181 major CEOs who were committed to running their companies for the benefit of all stakeholders – i.e. customers, employees, suppliers, communities and shareholders.

The focus has shifted to long-term value creation. Corporates are increasingly acknowledging that they have a role to play in solving the bigger problems of the day – from climate change and natural resource crunches to historic inequalities that continue to exist globally.

It’s worth pondering whether companies can generate value so that both business and
society can flourish together.

VALUE SYSTEM Along with reinvigorating their existing workforce, purpose driven companies are also more attractive to customers. Consumers (especially millennials) are increasingly favouring brands that are in line with their personal value systems.

It may not be the most important criteria yet but company purpose is certainly starting to play a significant role in purchasing decisions.

Purpose is even more important for potential employees in the millennial segment as they place a premium on driving meaningful progress. According to a survey conducted by a global tech firm, 80 percent of millennial team members say they cared more about the organisation’s purpose than their personal paycheque.