Clear Corporate Purpose

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QUESTION 1 Explain why organisations should have a clear corporate purpose. (25 marks) Once upon a time, many companies used to lay out their corporate purpose for their operations only in compliance to a fiduciary requirement arising from their incorporation. Over time, the term “corporate purpose” has come to be more widely used by companies. The writer is going to explain why organisations have gone “beyond compliance” and have a clear corporate purpose. Terms to be defined “ corporate purpose” Definition of terms Mazutis et al (2015:9) defined corporate purpose as: “ a company’s core "reason for being.” It is the organization’s single underlying objective that unifies all stakeholders and embodies its ultimate role in the broader…show more content…
It does not just describe the organization’s output or target customers; it captures the soul of the organization. A primary role of core purpose is to guide and inspire.” . This means that the need to have a clear Corporate purpose have an impact to both internal and external stakeholders. On the internal side, it provides direction, unifies employees and makes them to remain resolute and anchor them within company values when implementing a strategic vision both at tactical and operational levels. Apart from having an important impact purpose, it consistently create a strong determination to have a continuous engagement among employees, thus eliminate inter office politics. Lastly on internal side, a clear purpose is a motivational factor which makes employees feel proud of, a well motivated staff has a greater turnover and helps to retain talent, as people who are aligned with the purpose are drawn to the…show more content…
It does not just describe the organization’s output or target customers; it captures the soul of the organization.’ This means a clear corporate purpose for an organization helps employees and customers understand what the organization is all about. It is a primary role of core purpose is to guide and inspire. A clear purpose for the corporate assists the organization move toward its vision or ultimate goal or objective of what the ultimate end should look like when the organization achieves its mission. and organization can plan a well designed and successful strategic plan leading to competitive
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