LATEST NEWS AND EVENTS FROM THE SCHOOL OF ENGINEERING
The first tool to measure corporate purpose in companies is born
It is an instrument that surveyed 1,500 employees and 350 managers from 20 companies in 4 different countries that have developed a purpose-driven management system.
The definition of a purpose that links business objectives with a positive social, ethical and environmental impact is one of the great challenges facing organisations, as reflected in the results of the report Approaching the Future 2019: Trends in Reputation and Intangible ManagementThe report, prepared by Corporate Excellence together with CANVAS Sustainable Strategies, based on a survey of more than 200 executives from large companies.
The need to measure the internalisation of the same and to know the levers to promote it in organisations has led Corporate Excellence - Centre for Reputation Leadership, Tecnun- Engineering School of the University of Navarra, the Chair in Management by Missions and Corporate Governance of the International University of Catalonia, NCH&Partners and DPMC to promote an R+D+i research project in this field of knowledge. The results of the project were presented today at the new Madrid campus of the University of Navarra in Madrid.
The results of the Approaching the Future 2019: Trends in Reputation and Intangible Management reveal that 56% of managers are already working on initiatives to implement and activate corporate purpose through corporate values and culture and, of these, 92% say they have defined it, understanding that it is no longer based exclusively on business, but includes social, ethical and environmental values. But as Ángel Alloza, CEO Corporate Excellence - Centre for Reputation Leadership, says "until now there were no tools that allowed us to assess the strength and internalisation of the purpose at an organisational level; this need is what we have responded to through the Purpose Strength Model".
In order to measure the degree to which employees have internalised the corporate purpose, the variables that accelerate or slow it down, as well as the impact that this internalisation has on a company's efficiency, the research project Measuring the Purpose Strength was created.
In this first phase, 1,500 employees and 350 managers from 20 companies, in 4 different countries, who have developed a purpose-driven management system, were surveyed. "The first analyses show that having employees identified with purpose can increase their organisational commitment by up to 70%. In addition, we have identified companies that have increased their profits by up to 30% as a result of developing a purpose-driven organisational model. However, we are still at an early stage and need to be cautious. The more empirical evidence we have, the better we will understand the effects of purpose," says Álvaro Lleó, professor at Tecnun- Engineering School of the University of Navarra and academic director of the project.
"The current environment of constant change, uncertainty and mistrust, makes companies increasingly aware of differentiation around a shared corporate purpose," explains Carlos Rey, Director of the Chair in Management by Missions and Corporate Governance at the International University of Catalonia.
"The sustainability of companies depends on managers clearly defining the purpose of their organisation and being able to translate it into their day-to-day work. We need human companies, companies with a clear sense of contribution to society," says Nuria Chinchilla, Professor at IESE Business School, Founder of the International Center for Work and Family and holder of the "Carmina Roca and Rafael Pich-Aguilera" Chair of Women and Leadership.
New reference manual for building purpose-driven enterprises
The event also hosted the presentation of the book Purpose-Driven Organisations. Management Ideas for a Better World. This is a reference manual for building companies led by a shared and differentiating purpose. The book, directed by Professor Carlos Rey, director of the Chair in Management by Missions and Corporate Governance at the UIC, and published by Palgrave Macmillan with the support of the Corporate Excellence Library and the consultancy firm DPMC, brings together, thanks to the contributions of 20 experts in this field of knowledge, the roadmap for the definition and activation of corporate purpose.
"One of the great singularities of the work is that it will be available in open access. This is our great contribution to business management," explains Jaume Giró, president of Corporate Excellence - Centre for Reputation Leadership and General Director of the La Caixa Banking Foundation, who explains that "it is not possible to generate trust, reputation and commitment with stakeholders without a coherent and authentic purpose".
The importance of linking purpose with profitability and profit generation is a priority for companies that has also been driven by investors, as evidenced by the annual letter to executives from Larry Fink, CEO of BlackRock (one of the largest global investment funds), on the need to link profitability and purpose.
Good practices in corporate purpose
María Campo Bernal, Director of Brand and Corporate Reputation at Ibercaja, shared the process of definition, activation and implementation that her company has undertaken to generate a system of shared beliefs around it and strengthen corporate culture, the main driver of differentiation in the economy of reputation and intangibles.
Nuno Pitta, CEO of DPMC, presented success stories and concrete examples of companies that have driven transformation processes around a shared purpose and the impact it has had in terms of individual commitment, collective unity and business benefit. "The only way to generate a shared purpose is through a sense of mission. I live it every day in my family and in the organisations that trust us".