The impact of being purpose driven has a fundamental effect on the whole organisation
Ernst&Young calculated the impact that purpose-driven organisations have.
With ‘purpose driven’ we mean that the company arranged itself to contribute to a larger goal, like bringing down carbon emissions, creating fair trade, and improving life on earth. They do not strive for profit maximisation, but for purpose maximisation.
They make different choices, do not think in terms of competition, share their knowledge, are transparent and tell about their imperfections.
World improvers are long regarded as an exotic species from another island.
They set the performance bar high for other companies.
The Performance Bar
Employees of purpose-driven organisations are 40% more involved and 70% more satisfied with the work they deliver. The probability that they will remain is 300% higher in comparison to other companies.
Customers are also more satisfied: 79% say they are prepared to recommend an organisation with a purpose to others, and 89% thinks that these companies deliver the best quality.
Shareholders beware: purpose-driven organisations perform ten times better (period of 1996-2011) and get 120% more return on the stock exchange (2013) (source: E&Y.com)