Dr. Asif Theyyampattil
The biggest mistake CEOs make about purpose? Seeing it as a trade-off with profit.
Let’s debunk that myth and redefine purpose as your strongest business asset.
Every individual has a purpose in the lives of those they connect with—sometimes deep, sometimes surface level. Similarly, every company exists to address a problem. Whether founders realise it or not, the reason a company exists is the problem it solves. A business that doesn’t solve a meaningful problem—and deliver value profitably—cannot survive.
Many founders start businesses to seize profitable opportunities, which is fine. But the real challenge arises when the nature of the problem changes and the founder loses clarity or focus. Without clear understanding and purpose, adapting to change becomes difficult and profitability suffers.
Common Misunderstandings CEOs Have About Purpose—and Their Impact
- Purpose is the Same as Sustainability or ESG Initiatives
Many CEOs confuse purpose with environmental or social programs, treating it as a PR checkbox rather than a core mission. This “purpose-washing” can backfire, appearing inauthentic and distracting the company from its unique value creation. - Purpose is a Soft, Unmeasurable Concept
Some leaders see purpose as a feel-good, fuzzy idea irrelevant to financial goals. This mindset leads to short-termism and missed opportunities to embed purpose as a driver of innovation, resilience, and long-term growth. - Purpose is About Donating Money or Philanthropy
Philanthropy is positive but not synonymous with purpose. When purpose is delegated only to charitable efforts, it fails to influence core business decisions, creating a disconnect that harms trust and employee engagement. - Purpose is a One-Time Announcement or Statement
A flashy purpose statement means little if not deeply embedded into culture. When crises arise, companies without lived purpose often abandon their values, scoring distrust and disengagement among employees. - Purpose Conflicts with Profit
This false dilemma forces compromises that undermine sustainable success. Purpose-driven companies prove profit and purpose reinforce each other—purpose attracts talent, builds loyalty, and fuels innovation, while profit powers the mission.
How CEOs Can Embrace Authentic Purpose
A clear example is Google’s purpose “to organise the world’s information and make it universally accessible.” This mission guides everything from strategy to culture.
But purpose isn’t just words—it must morph into culture. Every team member should live this purpose daily by solving customer problems aligned with the company’s mission.
Practical steps include aligning hiring, training, rewards, customer loyalty, product design, transparency, work-life balance, social and environmental commitments, and accountability with the purpose. This deep integration fosters a culture where purpose drives every business decision, not just a tagline.
What’s your take?
Are you ready to move beyond buzzwords and embed real purpose into your company’s DNA? Share your experiences and let’s discuss how to make purpose a genuine force for growth and impact.
