CA-2

Name- Tanmoy Mondal

Roll- 16500921023
Subject- Corporate Strategy
Paper Code- MB 302

Topic Name- Evaluating the Corporate Purpose

The art of ensuring that the value of the enterprise as a whole is more than the sum of
its parts. The goal of corporate strategy is to articulate a vision of a great company that
is also a great stock—and to define the specific moves needed to bring that vision to
Life.

Corporate purpose : -
Corporate purpose is the higher
purpose of a company that
goes beyond the sole profit
orientation. The purpose is to
define and deliver a long-term
value-creating promise, either
in the company's local
environment or in the global
market environment, that is
 CA-2
Name- Tanmoy Mondal
Roll- 16500921023
Subject- Corporate Strategy
Paper Code- MB 302

directly related to the company's value creation.

How to evaluate the impact of corporate purpose : -
Companies must develop the capacity to accurately assess whether they are making
progress toward social and environmental goals. Confronted by employees seeking
meaningful work, customers demanding sustainable and traceable products, and
investors who want
companies to do both
well and good — while
inequality is rising and
climate change is an
increasingly dire threat
— business leaders are
redefining the purpose
of their organizations.
These days, one is
hard-pressed to find a
major company that has
not incorporated the
greater good into a
statement that lays out
the organization’s
reason for existing.
But if corporate purpose is to be more than window dressing and deliver on the
promise of an engaged, motivated workforce and more loyal customers, companies
must develop a capacity that is still lagging for most: They must be able to accurately
assess the results of executing their purpose-driven strategy, particularly when that
strategy extends to making a positive social and environmental impact. If companies
measure this at all, they often outsource it to consultants, silo it in a corporate social
responsibility function, or even
delegate it to an intern. This attitude
has led to suboptimal approaches
that fail to look holistically at the
core business, are not taken seriously
 CA-2
Name- Tanmoy Mondal
Roll- 16500921023
Subject- Corporate Strategy
Paper Code- MB 302

by key stakeholders, or produce poor data that is not actionable.

Even companies that are making a sincere effort to implement purpose often focus
largely on aligning employees with the organization’s raison d’être. Consequently,
their efforts to track the impact of purpose may lean toward measuring employees’
understanding of purpose and its effect on engagement and retention. But for an
organization’s stated purpose to be sustainable, companies must begin to engage in the
hard work of assessing how it is made manifest (or not) in all business activities in
terms of specific objectives, outputs, and outcomes. At truly purpose-driven
companies, managing purpose is inseparable from managing the business.1 They
evolve into what we call impact organizations that strategically define, measure, and
manage their financial, social, and environmental objectives.