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

knowledge for the broader good. That is what makes us different. It is about using the
opportunity that you have to contribute to a broader good.
The result is a platform called the Google Innovation Lab for Food Experiences, which meets twice a
year. It brings people together from a diverse group of global companies and NGOs, who share the
core belief that together they can do more to make a contribution to affect positive change in the
overall food system, to feed the 8 or 9 billion people in the years to come in a way that considers the
intersection of health and environment. “The fact that we have the ability and the freedom to do
this within our organization is a part of our authentic corporate purpose,” explains a senior Googler.
Case Story: Toyota
Toyota Motor Corp. is a Japanese automotive manufacturer headquartered in Toyota, Japan.
Kiichiro Toyoda founded the company in 1937, starting the automotive business from scratch.
Since at that time, there was no automotive expertise in Japan, the company executives of the time
were sent to the US to actually learn how cars were produced.
The company nearly collapsed during the 1950 recession and became heavily dependent on banks.
The result was a focus on reducing risk as well as a commitment to organic growth, in order to
reduce reliance on external finance. In 2013 Toyota’s net revenues were $222 billion; it had 333,498
employees worldwide and was the largest automobile manufacturer by production.
Toyota’s stated purpose is; “Toyota will lead the way to the future of mobility, enriching lives around
the world with the safest and most responsible ways of moving people.” It sees its purpose as being
to serve society: to understand fully the impact that the company has on the environment, but also
how it helps people gain access to where they need to go and improve their mobility. Internally, it
seeks to make this as consistent as possible throughout the organization, making sure that all
entities globally are aligned. Toyota’s ability to be consistent in reliably delivering on its purpose
means that its external stakeholders respect it as a credible partner. On a number of occasions,
policymakers or stakeholders have sought the company’s advice on different issues. Therefore, it
places great importance on consistency, making sure employees fully understand what the company
purpose and mission is, through training and communication.
The founder’s vision continues to exert a strong influence on the company. Climate change was
always high on the agenda and therefore it has attended all the Climate Change conferences to date.
The corporate purpose is institutionalized and deeply embedded in the culture. Taking a long-term
view – an inherently Japanese cultural approach - is institutionalized at Toyota through an
interestingly differentiated approach. Some roles are clearly operational (encompassing a short-term
view) while others are deemed experts with also a thought leadership mandate (and are tasked with
taking a long-term perspective). The fact that the chairman of the board, for example, is tasked with
actively taking a long-term perspective on any strategic decision helps to ensure the company
retains its focus on long-run goals, understands the interdependence of current and future benefits
and preserves a long-term relationship with its stakeholders for future success.
Toyota, like many other companies, has experienced difficulty during the ongoing economic crisis
which started in 2008, and has faced strong pressure to shift its focus to shorter-term results. During
such periods of uncertainty, while parts of the organization needed to have a short-term view to
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