BM_IMD_REPORT-How-Authentic-is-your-Corporate-Purpose

To validate the dimensional structure of a higher order authentic corporate purpose construct, we
then conducted a confirmatory factor analysis (CFA) using Mplus 7.11 on the 200 responses
received. As described in Section 5, the analysis supported all 12 identified dimensions. Having
established the dimensionality of the ACP construct, we then ran a full structural model (SEM) to
test the relationship between leadership and ACP. As discussed in Section 6, leadership was found to
be an important predictor of ACP.
To benchmark the survey findings and go deeper with the analysis, we conducted qualitative
interviews with executives from the companies identified by survey respondents as having an
authentic corporate purpose. We identified ten companies as subjects for interviews; contacts
within each of these companies in relevant functions were then e-mailed to inquire about their
willingness to participate in a structured interview. For those who confirmed, interviews were
conducted by phone in a standardized open-ended format for 45 minutes (refer to Appendix II for
the interview protocol). Interviews were recorded with the respondent’s permission, and transcribed
after the conclusion of the interview. During the interview, respondents were asked if they would
agree to rate each of the dimensions with regard to their company. If they agreed, these were then
sent to them by email in the form shown in Appendix III, together with a one-page attachment
briefly describing each of 12 the dimensions. The respondent companies and areas of activity are
indicated in Appendix IV.
3. Introducing the Authenticity of Corporate Purpose Model
In this section, we introduce our theoretically derived model of authentic corporate purpose.
Stemming from the authentic leadership, authentic branding and authentic CSR literatures, as
captured in Figure 1, we grouped the 12 core dimensions of authentic purpose conceptually into
factors that relate either to an organization’s identity or to its image. An organization’s identity
refers broadly to how an organization internally defines its central, distinctive and enduring features,
while the notion of image captures how external constituents, including customers and other
stakeholders, perceive the organization. As such, we see these two broad concepts as a mirror
reflection of each other or as two sides of corporate purpose and it is only when the internal and
external perceptions of corporate purpose align that we see attributions of authenticity occur.
11