Throughout the whole chapter, the patterns have been emerging by themselves. It is the reading of the characteristics of the five global platforms that gives the reader an idea of the patterns. And this is stated since the platforms have a path, an idea, but they don't want to limit of propose an ‘only' way to do alternative management, so a purpose-driven business is achieved. Here is where the beauty of these approaches reside. In their humbleness of deeply believing in a new form of management, but at the same time knowing that their ideas are ‘just' a proposal. That is why the authors wrote this chapter, so people can start thinking more about purpose-driven companies as the new ‘mantra' for management. The old one, ‘command and control' must disappear ASAP, so we can create a new type of businesses that can help solve the worst challenges we are facing as a global society.
TopIntroduction
Purpose is a momentous objective. A purpose is not the same as a Mission in terms of strategic planning. Having a purpose goes much further; it is a transcendental vision, it is a dream, it is an essence, an aspiration, a calling. What gives us purpose in our lives is a Higher Purpose; it is working to have a real impact in the world that we live in.
Purpose refers to the difference you're trying to make in the world, mission is the core strategy that must be undertaken to fulfill that purpose, and vision is a vivid, imaginative conception or view of how the world will look once your purpose has been largely realized. (Mackey & Sisodia, 2014, pg. 47)
Purpose-Driven Companies are those that, through management, go far beyond what is expected to rise up to their momentous vision, which answers to the Why of the existence of the Company. Additionally, Purpose-Driven Companies exist because they want to generate wealth for society and not merely for the owners of the Company. The wealth generated in these businesses serves, firstly, to strengthen the Business itself and, secondly, to push it toward success in its transcendent vision. It is in this distribution of wealth that Purpose-Driven Companies have a triple impact vision, that is to say, they recognize they must work toward economic, social, and environmental sustainability (Correa 2012).
Purpose-Driven Companies want to redefine the meaning of economic success and seek to develop a branch of sustainable capitalism. They want to be the best businesses for the world rather than the best businesses in the world; in other words, they seek to be the best company possible for all their stakeholders and, more than anything, for their employees. In terms of managerial style, Purpose-Driven Companies tend to rise above traditional management styles: instead of controlling and mandating they focus on inspiring, as well as redefining control, authenticity, and passion (Hamel & Breen, 2010).
This topic is consistently receiving more attention from different guilds, businessmen, and academia in general. For example, in the July-August 2018 issue of the Harvard Business Review, the cover highlights an article titled “When Work Has Meaning: How to turn PURPOSE into PERFORMANCE”. In the article, Quinn & Thakor (2018) state:
A higher purpose is not about economic exchanges. It reflects something more aspirational. It explains how the people involved with an organization are making a difference, gives them a sense of meaning, and draws their support (p.78).
In the same vein, Hernández (2018) states that “Purpose-Driven Companies are more successful” and refers to a certified and very well-known B Company, Patagonia, and its creator. Purpose is the engine that drives workers toward getting out of bed in the morning with enthusiasm, it is the conviction that they are contributing to something larger than their individual job. New generations understand it best, numerous studies show that millennials seek to work in businesses that share their values, companies where they feel like they are working toward some greater good. This all helps employees connect to the company and motivates their performance.
In May 2019 a qualitative investigation conducted in nine businesses with a purpose, seven of them Colombian and two of them Kenian, came to a close. After interviewing the creators of said companies as well as 20 collaborators of one of the companies —”Las Mazamorras de Urabá”—, the research team1 found an important approach that contributes to this document. The team differentiated between “Purpose-Driven Companies” and “Businesses with a Higher Purpose”, concluding that those with a higher purpose tend to abide by three necessary pillars to be on the path to higher purposes. Those companies that abide by only one or two of the pillars can be called Purpose-Driven Companies, but they fall short of being considered Higher (Largacha-Martínez, Montoya, & deArmas, 2019). The following table expands on the aforementioned components (table 1).