Tom Fox is talking about purpose in this solo episode of the ESG Report. He shares insights from an HBR article, What Is The Purpose of Your Purpose written by Jonathan Knowles, Tom Hunsaker, Hannah Grove and Allison James, that talks about aligning your ESG program to your corporate purpose.
The Three Senses of Purpose
The authors identify the three senses of purpose: competence, culture and cause. There are gaps in these senses that compliance officers must overcome:
- The cause competence gap – the lack of alignment with your business and why it exists.
- The competence culture gap – where the company is valued by its customers but treats its employees poorly through low wages or an intolerant environment.
- The culture cause gap – where the company has a clearly defined cause but employee engagement on that cause is very low.
Finding Your Corporate Purpose
The authors map out a five-step approach to finding your corporate purpose, and also remedying the sense gaps. Itemizing the types of interests for your ESG program, and getting those departments to work together, will be crucial in order to get them to buy into the ESG approach. Understanding the three senses of purpose and their advantages will help compliance officers develop a clear sense of business objectives. Asking questions about your organization’s credibility to do good and bring value to society, will keep you focused on the bigger picture and help to ensure ethical behavior. By embedding purpose in corporate behavior, and from a bottom-up perspective, purpose can increase authenticity and engagement from the day-to-day experiences of customers and employees.
The Importance of Purpose
Purpose can increase customers’ preference for your products and services. Purpose can boost employee engagement. “The employees have to believe in your compliance program and do business in your compliance program by believing in it,” Tom quotes. The purpose of your organization and your ESG program can help with this. Purpose and ESG can help reinforce a company’s reputation as a good corporate citizen. Finally, purpose and ESG will allow you to respond to crises and risks in a timely manner, in ways that are impactful.
Resources
Tom Fox email
What Is The Purpose of Your Purpose
