Corporate Purpose and Firm Strategy

Abstract

This paper explores the relevance of corporate purpose to strategy research. Corporate purpose can be conceived as a shared understanding of why an organization exists, made real by the beliefs of employees and tangible actions by firm leaders. While it has a long history within organization theory, law, and finance, purpose has received relatively less attention within the field of strategy. This essay argues that incorporating purpose into strategy research is both consistent with the view from practice and can open up the field to new channels by which firms compete and survive. It also outlines potential areas for future research, including links between corporate purpose and strategy at the individual, firm, and industry level.