Know your business's purpose

According to the article, what specific difficulties are there for research into organisational purpose?

Data collected on the financial performance of purpose-driven, for-profit organisations is difficult to evaluate given that opaque, proprietary methods have often been used

The data on organisational purpose has mainly looked at for-profit businesses, which means their conclusions cannot be generalised to non-profit organisations

For-profit consultancies may have financial incentives for overclaiming the benefits of purpose for their client organisations

There is a lack of consensus on how to distinguish between purpose-led organisations versus their peers

What is the defining feature of an organisation's purpose?

It should articulate how the organisation aims to make a difference beyond maximising shareholder returns

More than one of the other answers is correct

It should explain the organisation's reason for existence

It should explain how the organisation aims to contribute to society or the environment

How does an organisation benefit from being purpose-driven?

It may help in attracting and retaining talent

Two of the other answers are correct

Leaders may find it easier to appease shareholders when financial returns are low

Consumers may be more willing to spend money on its products and services

What is likely the largest obstacle to becoming a truly purpose-driven organisation?

Managing the constant contradiction between the requirement to generate financial returns and the desire to satisfy non-financial stakeholders

Engaging employees to such a degree they believe in and are inspired by the organisation's purpose

Communicating purpose in an authentic fashion so that it is not seen as a marketing exercise

Creating financial incentives, targets and KPIs that reward purpose-driven behaviour

Given your knowledge of events in global business, what sorts of practices have some businesses engaged in while espousing high-minded purposes?

Funding research to weaken claims about the harm caused to consumers by the consumption of sugar and ultra-processed foods

Offshoring profits to engage in morally questionable tax avoidance

Lobbying governments to allow business practices that harm the environment

All of the other answers are correct

Which of the following is most likely to undermine an organisation's social purpose?

None of the other answers is correct

Financial incentives based on a line manager's ratings of each employee's behaviour in relation to the organisation's values

Financial incentives related to a team's scores in a customer satisfaction survey

Financial incentives for selling individual products or services

Which of the following does the research evidence suggest?

Purpose is likely to have weaker benefits in organisations situated in non-western and/or less democratic countries

The data linking organisational performance to financial performance is weak or non-existent

The benefits of having a purpose are mainly to do with attracting customers to buy from the organisation

There is strong evidence that employees are motivated to work for organisations that have a purpose other than to make financial returns

Which of the following is likely to help a listed business stay true to its purpose?

Data from market research companies showing that a large proportion of customers understand and value the organisation's purpose

A chief executive who frequently communicates the importance and benefits of the organisation's purpose to shareholders

All of the other answers are correct

A board that understands the long-term benefits of having a broader purpose

Which of the following is the least likely benefit of being a purpose-led organisation?

Employees who become advocates for the organisation's brand

Better relationships with government agencies and regulatory bodies

Customers who become advocates for the organisation's products and services

Lower employee turnover

Which of the following may explain a failure to become a truly purpose-led organisation?

All of the other answers are correct

The finance function may not understand why it should not always reduce operational costs

Employees are told to prioritise customer satisfaction but are also given quarterly sales targets

Leaders in the organisation refer to purpose mainly in external communications and make little reference to it in internal communications

Know your business's purpose

According to the article, what specific difficulties are there for research into organisational purpose?

What is the defining feature of an organisation's purpose?

How does an organisation benefit from being purpose-driven?

What is likely the largest obstacle to becoming a truly purpose-driven organisation?

Given your knowledge of events in global business, what sorts of practices have some businesses engaged in while espousing high-minded purposes?

Which of the following is most likely to undermine an organisation's social purpose?

Which of the following does the research evidence suggest?

Which of the following is likely to help a listed business stay true to its purpose?

Which of the following is the least likely benefit of being a purpose-led organisation?

Which of the following may explain a failure to become a truly purpose-led organisation?

You scored

0

out of

0

Test passed. Enter your details to download your certificate. Your certificate will also be sent to you by email.

Our sites

Useful links

Using this site

Contact us

Planned system updates