{"id":115771,"date":"2023-01-18T11:06:49","date_gmt":"2023-01-18T11:06:49","guid":{"rendered":"https:\/\/edenred.pt\/uncategorized\/purpose-what-is-it-and-why-should-it-guide-your-company\/"},"modified":"2025-01-31T15:13:27","modified_gmt":"2025-01-31T15:13:27","slug":"purpose-what-is-it-and-why-should-it-guide-your-company","status":"publish","type":"post","link":"https:\/\/www.edenred.pt\/en\/news\/human-resources\/purpose-what-is-it-and-why-should-it-guide-your-company\/","title":{"rendered":"Purpose: What is it and why should it guide your company?"},"content":{"rendered":"\n<p>In recent years, purpose has been a concept widely referred to in the organizational world.  <\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.forbes.com\/sites\/afdhelaziz\/2020\/06\/17\/global-study-reveals-consumers-are-four-to-six-times-more-likely-to-purchase-protect-and-champion-purpose-driven-companies\/?sh=1e164abc435f\" target=\"_blank\" rel=\"noreferrer noopener\">2020 &#8220;Strength of Purpose&#8221;<\/a> study concluded that consumers are four times more likely to buy something from a company when that company has a strong purpose.<\/p>\n\n\n\n<p>For this reason, many leaders recognize the <strong>importance of purpose in organizations<\/strong>. But what is purpose? What characterizes a purpose-driven company and why is it important?  <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is purpose?<\/h2>\n\n\n\n<p>Purpose is the <strong>reason for an organization&#8217;s existence<\/strong> beyond profits: it defines why the organization exists in a more aspirational way, summarizing why it is important to people.<\/p>\n\n\n\n<p>Purpose is related to the role the company plays in society and the value it adds in the long term, both to people and to the planet.<\/p>\n\n\n\n<p>According to <a href=\"https:\/\/hbr.org\/2021\/10\/creating-a-meaningful-corporate-purpose\" target=\"_blank\" rel=\"noreferrer noopener\">Hubert Joly&#8217;s definition in The Heart of Bussiness<\/a>, the purpose of an organization is what results from the intersection of four variables:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What the world needs;<\/li>\n\n\n\n<li>What is it that the company is exceptionally good at and therefore differentiates it?<\/li>\n\n\n\n<li>How the company can generate economic value;<\/li>\n\n\n\n<li>What the company&#8217;s employees are passionate about, what drives them.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Why is having a purpose important?<\/h2>\n\n\n\n<p>According to <a href=\"https:\/\/www2.deloitte.com\/us\/en\/insights\/topics\/marketing-and-sales-operations\/global-marketing-trends\/2020\/purpose-driven-companies.html\" target=\"_blank\" rel=\"noreferrer noopener\">Deloitte<\/a>, what differentiates companies guided by a clear purpose from those without one is <strong>longevity and authenticity<\/strong>.<\/p>\n\n\n\n<p>Having a well-defined purpose helps organizations to be more consistent and more relevant to people. When a company has a clear idea of its &#8220;why&#8221;, it can more effectively meet the needs and interests of its customers, resulting in <strong>greater satisfaction and loyalty<\/strong>. <\/p>\n\n\n\n<p>This greater satisfaction and loyalty also tends to be found in employees, who also prefer to work for a company with a strong purpose.  <\/p>\n\n\n\n<p>Ultimately, all this contributes to increasing productivity and profits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Example: Edenred&#8217;s purpose<\/h2>\n\n\n\n<p><a href=\"https:\/\/edenred.pt\/en\/about-us\/edenred\/\" target=\"_blank\" rel=\"noreferrer noopener\">Edenred&#8217;s purpose<\/a> is &#8220;<strong>Enrich connections. For good<\/strong>&#8220;. Ever since Edenred created the meal ticket, a small paper voucher, it has generated countless connections: between companies, employees, establishments, public authorities, society in general&#8230;<\/p>\n\n\n\n<p>We believe in the importance of these connections, which add value to all parties and promote progress and quality of life. At the same time, we care about how these connections develop on the planet we live on. And this is our purpose.  <\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Having a clear purpose means discovering new opportunities to add value to customers, other stakeholders and the communities in which companies operate. It means focusing on people and the planet, it means being authentic and consistent in what you do and say.<\/p>\n\n\n\n<p>Is your company already guided by a purpose?<\/p>\n","protected":false},"excerpt":{"rendered":"In recent years, purpose has been a concept widely referred to in the organizational world. The 2020 &#8220;Strength of Purpose&#8221; study concluded that consumers are four times more likely to buy something from a company when that company has a strong purpose. For this reason, many leaders recognize the importance of purpose in organizations. But&#8230;","protected":false},"author":4,"featured_media":110462,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[232],"tags":[],"target":[202],"class_list":["post-115771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-human-resources","target-company"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Purpose: What is it and why should it guide your company? - Edenred Portugal<\/title>\n<meta name=\"description\" content=\"Many leaders recognize the importance of purpose in organizations. 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