Purpose: An organizational approach that cuts across all areas, in which leaders and metrics play a key role

Purpose: An organizational approach that cuts across all areas, in which leaders and metrics play a key role

Corporate responsibility has changed dramatically over the past 50 years. Gone are the days when corporations focused solely on shareholder value. Today, companies are expected to commit to a purpose. However, the definition of purpose is sometimes unclear, particularly in the context of marketing and advertising.

Given this reality, Almabrands and the Universidad de los Andes announced a few weeks ago the creation of a chair in Organizational Purpose—a pioneering initiative in the country—that seeks to foster the development of conscious, responsible companies committed to their impact on people and society.

We were joined by Gloria Ledermann, Marketing Manager at Copec; Romina Galatzan, Corporate Marketing Manager at Entel; Rebeca Astorga, Consumer Knowledge Manager at Nestlé; Juan Pablo Martínez, a business engineer and sociologist; from the Universidad de los Andes: Cristina Errázuriz, Vice Rector for Communications; María Augusta Scagliotti, Deputy Director of Corporate Culture; and Sebastián Goldsack, professor and advisor; as well as Almabrands partners Carolina Altschwager and Cali Trivelli.

A Wealth of Ideas

Among the ideas expressed—and there is broad agreement on this—is that a company’s business purpose is its reason for being, going beyond the mere generation of economic profits. This concept is directly linked to the common good, connecting the organization’s actions to a positive impact on society. And it is important not to confuse it with a slogan, an advertisement, or the company’s mission or vision.

This is because purpose is not a fixed goal; it is a journey that must integrate strategy, culture, and operations into the company’s day-to-day operations.

There was also considerable discussion about which department within the company addresses this issue, and there is agreement that, while marketing plays an essential role, this is a cross-functional area that must involve the entire organization—but where leadership is key. Here are a couple of quotes that support this:

“The purpose isn’t marketing. Although we use it in communications and marketing, its essence is much deeper, more cultural, and more strategic. It can’t get bogged down in operational details.”

“Leadership doesn’t just drive purpose; it lives it. Without this commitment, purpose would be nothing more than an aspiration, not a reality.”

Along with leadership, metrics are essential, and at Almabrands we’ve identified them as a huge opportunity. “Without clear metrics, it’s hard to determine whether the purpose actually impacts results or if it’s just an empty promise,” they said.

A recurring challenge is how to measure the actual impact of a company’s purpose. Despite progress in implementing it, the lack of metrics makes it difficult to assess its contribution in terms of organizational outcomes, credibility with employees and the public, and resilience during times of crisis or business changes.

In addition, communicating the company’s purpose should foster a sense of belonging and pride among employees, aligning personal goals with corporate objectives.

“It is crucial to align employees’ individual purposes with the organization’s purpose, as this connection gives meaning to their work and makes it resilient in the face of challenges. Encouraging self-reflection to discover this alignment can leave a lasting legacy for both individuals and the company,” he said.