The Importance of a Purpose StatementA business that uses a Purpose to guide it could be any business. It needn't bear the label "Social Enterprise."Purpose is a target, a goal that's bigger than just the company. Some people describe it as a North Star or a Moon Shot. And, like continuous improvement, it may be an inspiring and never-ending quest.The Purpose Statement is the reference point, the light in which a company stands and weighs decisions against. It is why the company exists and what gets people out of bed in the morning with enthusiasm for the task.Ashley Bright, CEO of GCG Brighthouse, describes Purpose as a statement intended "to be generative… so that the benefits reach beyond the business."Dr. Colin Mayer of Saïd Business School at the University of Oxford says that a Purpose statement should express a firm's desire "to solve the problems of people and planet profitably, and not profit from causing problems."Zein Abdalla, a Director at Cognizant, observes, "In elevating Purpose, we must not lose sight of the fact that it is only powerful when (it is) part of an integrated ecosystem of vision, strategy, and values. Purpose as a standalone statement goes nowhere; only when it comes to life through vision, strategy, and execution is it sustainable over time."A Purpose Statement should be short, easy to remember, chosen carefully, and in conjunction with stakeholders.Here are some examples of compelling Purpose Statements.Patagonia, the clothing manufacturer, says:"We're in business to save our home planet."From REI Outdoor Equipment:"Inspire, educate, and outfit for a lifetime of outdoor adventure and stewardship."This one from LEGO is an example of a wordy, hard-to-remember Purpose Statement:"to inspire and develop children to think creatively, reason systematically, and release their potential to shape their future - experiencing the endless human possibility."Edifying but not mentally manageable.Country Music singer Willie Nelson covers a song called "We Are The Cowboys." The song offers some good advice.––––MusicWe Are The Cowboys, sung by Willie Nelson, written by Billy Joe Shaver, Legacy Recordings.ReferencesMayer, C., Eccles, R., & Younger, R. (2020, September 2). Enacting Purpose within the Modern Corporation. The Harvard Law School Forum on Corporate Governance. https://corpgov.law.harvard.edu/2020/09/02/enacting-purpose-within-the-modern-corporation/Miazad, Amelia, et al. EPI the Enacting Purpose Initiative Report # 2 Directors & Investors: Building on Common Ground to Advance Sustainable Capitalism 0 7 . 2 0 2 1. July 2021.The Purpose Project. "22 Inspiring Business Purpose Statements." Purpose Project, 15 April 2018, www.thepurposeprojectinc.com/blog/2018/4/25/22-inspiring-business-purpose-statements.Younger, Rupert, et al. Enacting Purpose within the Modern Corporation: a Framework for Boards of Directors. Aug. 2020.

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