Does a strong sense of corporate purpose lead to increased productivity?

Our latest podcast episode focuses on B Corp status with Thomas Bourne, a UK expert on this subject. One part of our conversation looked at the link between corporate purpose – and employee engagement with this purpose- and increased productivity.

The UK lags its comparators on a variety of productivity measures and many of our recent (and not so recent) PMs have mentioned about a focus on tackling this issue.

From a recent report by Deloitte (‘The rise of the social enterprise’), companies that prioritise social impact and purpose generally achieve higher levels of productivity and employee engagement – Thomas explained that B Corp certification provides a framework for businesses to integrate social and environmental impact into their operations, and most B Corp certified organisations have reported improved employee retention, customer loyalty, and financial performance.

The Social Enterprise report (written pre pandemic) highlights that employees (especially Gen Z) are increasingly looking for meaningful work that aligns with their personal values and that a strong sense of purpose can lead to increased job satisfaction and motivation.

Many of us have seen this in interviews, where increasingly younger employees are interrogating their prospective employers. This public benefit concept also ties into a podcast we did in Series 1 on Delt, which is owned by the public sector but has achieved high engagement (and recognition as a Best Companies to Work For) by strongly focusing on its purpose of Helping People do Amazing Things.

Whilst B Corp certification is not easy, many of our previous guests have discussed beginning this assessment in light of its potential benefits, not only in terms of financial performance but attractiveness to that scarcest of current resources – new employees. If enough organisations can adapt this, perhaps it might start to narrow the national productivity gap, although perhaps that it too ambitious?

Listen now: B Corp status with Thomas Bourne