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

Strategic embedding: When purpose is deeply engrained in organizational decision-making,
both at the operational and strategic levels, it becomes an integral part of the organizational
make-up, leaving no doubt about how it translates into action in every situation.
Clear and continuing vision: Strong leaders who are both convinced and convincing continue
to guide and inspire, helping to ensure the organization continues to stay the course and live
its purpose over the long term rather than becoming complacent.
The interviewees raised some interesting questions: Will authenticity become more of a strategic
challenge in the future as companies make a broader corporate purpose central to their strategy?
How can they ensure they communicate this effectively? With the proliferation of conversations
happening at increasing speed and across time zones on social media platforms, how can companies
be sure that what they project externally reflects their authentic corporate purpose?
8. Understanding the Dimensions of Authenticity
In this section, we explore some of the most important dimensions when it comes to establishing an
authentic corporate purpose – bearing in mind that all twelve dimensions are important for
authenticity. We then look at how leaders and other stakeholders can use these dimensions to
establish and maintain an authentic corporate purpose.
Dimension
Awareness
Embeddedness
Transparency
Description
The company – through direct interactions with its stakeholders – has acquired a
deep understanding of its strengths and weaknesses, what drives or motivates its
actions and how it impacts stakeholders and the environment.
The company’s choices and actions are partly generated by the actions and
expected behaviour of other actors, and thus it remains close to its stakeholders
who enable it to remain connected to the world around it.
The company promotes trust by openly sharing information with its stakeholders,
demonstrating coherence between “talk” and “walk,” is honest and truthful about
its activities, admits mistakes when they are made and does not pretend to be
something it is not.
8.1 Awareness
Organizations that are aware have a deep understanding of their own strengths and weaknesses.
The questions included in our questionnaire and designed to throw light on our understanding of the
relationship between an organization’s awareness and its authenticity in corporate purpose were as
follow:
- Does the organization seek feedback to improve its interactions with stakeholders?
- Does the organization accurately describe how stakeholders view its actions?
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