Daily CSR
Daily CSR

Daily CSR
Daily news about corporate social responsibility, ethics and sustainability

Global CEOs Assign A New Definition To Corporate Purpose


Survey finds the changing values of “corporate purpose” among the CEOs of the world.

Dailycsr.som – 22 January 2016 – This year’s PwC’s “annual survey of global CEOs” shows that now C.E.O’s clearly believe that there is a greater reason that goes above money for any existing business. Moreover, the survey also highlights that the said purpose has, in fact, “become a key part of business strategy”.
According to sixty one percent of the CEO’s, the meaning of a successful business will be “redefined” in the twenty first century, whereby the meaning of success will adhere itself to something that goes beyond the financial profit margins.
Nevertheless, all the CEOs did not agree to the above mentioned approach towards business, for the definition was a little different. One group of CEO took the said approach as their business’ reason of existence, while others keep it as their business aim towards which they move and ultimately want to arrive at, yet for some it meant the way “business is done”.
According to the CEOs description given about their “corporate purpose”, it relates to the value they hold for “one or more of a variety of stakeholders, including shareholders, supply chain partners, employees, customers and society at large”. Moreover, the value chain also covers the respective business when it comes to terms like “growth”.
Almost seventy percent of the CEOs have a similar feeling about their customers as the latter seem to be “most interested in cost” that leads to convenience and ultimately the functional utility of a product. However, twenty seven percent of the CEOs have a different take on the same for they feel that the customers want to build relationship with organisations that look into “wider stakeholder needs”. Overall, forty four percent of the CEOs consider the priorities patterns of the customers that are likely to take place in the next five years.
According to PwC, it seems evident that in the near future customers are also going to “put a premium on the way companies conduct themselves in global society”. Moreover, PwC also highlights that the afore mentioned belief is not only visible on the “customer front”:
“On the talent side it’s even more pronounced, it says, stating 59% of CEOs believe that top talent wants to work with organisations that share their social values and 67% feel it will be important in five years.
“Meanwhile, 37% of CEOs believe their investors seek ethical investments and 45% believe this will be the case in five years.”