Know your business's purpose

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

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

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

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

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

More than one of the other answers is correct

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

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

It should explain the organisation's reason for existence

How does an organisation benefit from being purpose-driven?

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

It may help in attracting and retaining talent

Two of the other answers are correct

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

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

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

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

All of the other answers are correct

Lobbying governments to allow business practices that harm the environment

Offshoring profits to engage in morally questionable tax avoidance

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

Financial incentives for selling individual products or services

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

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

None of the other answers is correct

Which of the following does the research evidence suggest?

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

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

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

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

All of the other answers are correct

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

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?

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

Employees who become advocates for the organisation's brand

Lower employee turnover

Better relationships with government agencies and regulatory bodies

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

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

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

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

All of the other answers are correct

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?

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