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Is There a Link Between Corporate Purpose and Performance?

In: Management by Missions

Author

Listed:
  • Pablo Cardona

    (Universidad Internacional De La Rioja)

  • Carlos Rey

    (Universitat Internacional de Catalunya (UIC))

Abstract

After 50 years of debate on this crucial question, the evidence is increasingly strong in favor of “yes”: companies can achieve better results if they incorporate practices that foster people’s sense of purpose. This relationship seems to be valid for very different types of industries and various business strategies within the cost-differentiation spectrum. However, causality between purpose and performance is not as linear as some literature and consultants seem to indicate. In this chapter, we discuss this relationship under the perspective of unity (the degree of mutual trust and commitment to the company experienced by people who contribute to fulfilling its purpose). Based on this perspective, we provide a framework that distinguishes four types of cultures: bureaucratic, paternalistic, aggressive and competent.

Suggested Citation

  • Pablo Cardona & Carlos Rey, 2022. "Is There a Link Between Corporate Purpose and Performance?," Springer Books, in: Management by Missions, edition 2, chapter 1, pages 3-19, Springer.
  • Handle: RePEc:spr:sprchp:978-3-030-83780-8_1
    DOI: 10.1007/978-3-030-83780-8_1
    as

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