(Moral) Corporate Purpose
(Mourkogiannis)

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What is a Moral Organizational Purpose? Description

In an article regarding moral purpose from Nikos Mourkogiannis, he describes four main ideals of leadership. These can be used for inspiring and leading an organization toward a long-term competitive advantage. According to Mourkogiannis in Strategy+Business, Issue 41, Winter 2005, a moral purpose is a value that, when it is articulated, appeals to the innate sense which is held by some individuals of what is right and what is worthwhile. Great leaders have learned how they can use moral purpose to allow them to inspire and lead their organization toward achieving long-term competitive advantage.

Mourkogiannis distinguishes four categories of moral purpose which are most successful and influential in today's business, with four corresponding ideals of leadership:

1. Discovery. Here the type of morality is "the new". The moral basis for actions is "I have freely chosen it". The philosophical background for this value was provided by the Danish Philosopher Søren Kierkegaard (1813-1855). Typical examples include innovative, technological companies such as IBM, Sony, Intel and Virgin.
2. Excellence. Here the type of morality is "the good". The moral basis for actions is it constitutes fulfillment. The philosophical background for this value was provided by the Ancient Greek Philosopher Aristotle (384 B.C. - 322 B.C.). Typical examples include professional and creative companies such as Berkshire Hathaway, The Economist, Apple and BMW. Compare: Clarkson Principles, Seven Signs Of Ethical Collapse
3. Altruism. Here the type of morality is "the helpful". The moral basis for actions is it increases happiness. The philosophical background for this value was provided by the Scottish Philosopher David Hume (1711-1776). Typical example organizations include many political movements, charities and also Wal-Mart, Marriott, and the Body Shop.
4. Heroism. Here the type of morality is "the effective". The moral basis for actions is it demonstrates achievement. The philosophical background for this value was provided by the German Philosopher Friedrich Nietzsche (1844-1900). Typical examples include ambitious and daring companies such as S.G. Warburg, Microsoft, Ford, and Exxon Mobil. Compare: Strategic Intent

Each moral purpose, in its own way, compels the people who work in that organization to rewrite the rules of their industry's game and generate unprecedented results. It should resonate with the sensibility of customers, employees, and other constituents.

Origin of the Moral Purpose tool. History

The four moral purposes are based on the philosophy traditions as mentioned above.

Usage of the Moral Purpose framework. Applications

• It contributes to employee morale by establishing a feeling of community and common meaning which is grounded in mutual respect.
• It fosters innovation by sensitizing people to market conditions and opportunities.
• It counters risk-aversion in large companies. People are stimulated to search for solutions within the framework of the chosen moral purpose.
• It provides a unifying theme that allows people to understand and facilitate the complex fit between the organization and its actions, assets and strategy.
• Company leaders must manage and align the moral purpose with the strategy. The nature of the moral purpose should help the company to advance in its environment.

Strengths of Moral Purpose thinking. Benefits

1. As stated above, a moral purpose contributes to employee morale, fosters innovation, counters risk-aversion and it provides a unifying strategic theme.
2. Also: moral purpose is where the big money is made. Outstanding long-term results can be achieved.
3. It reveals the underlying human dynamics of a firm, which are very important to employee motivation and behavior.
4. Strong and lasting communication message, especially for CEOs.
5. Strong basis for achieving strategic breakthroughs.

Limitations of the Moral Purpose categories. Disadvantages

• There are a number of other moral ideas besides the main four which are described by Mourkogiannis. These include the belief in equality and universal justice, religious morality, obedience to authority and precedent, and patriotism.
• However these other ideas do not in themselves inspire employees in ways that would make these concepts useful as moral purposes for most competitive firms.
• Other moral purposes may become a dominant model over time or when circumstances change. Compare: Spiral Dynamics, Contingency Theory
• The framework of Mourkogiannis is clearly a realistic and a Instrumental Approach to corporate purpose.

Assumptions of the Moral Purpose theory. Conditions

• Effective corporate strategy starts by identifying what moral purpose is closest to the company's strategic intent.
• The true business leader's significant role is to be in touch with, and to act on, the moral currents that influence his or her colleagues.
• If a company's corporate purpose is X, its strategy can not be Y. It will not work and it might even be harmful.

Book: Nikos Mourkogiannis - Purpose: The Starting Point of Great Companies

Forum Forum discussions about Moral Purpose. Below you can ask a question about this topic, share your experiences, report a new development, or explain something. Start a new topic about Moral Purpose Share your knowledge here (or ask a question)   How to Grow Towards a Higher Organizational Purpose In the past, quite a lot of senior executives, especially those with an Anglo-American business education background, had an economic view of the purpose of any firm. They believed that creating long-... 20   16 comments Three Types of Corporate Purpose The purpose of any company affects its success in many crucial areas. To mention a few, think of demand generation (how customers see it, brand personality), HR (employee engagement), investor attract... 19   11 comments 🔥 NEW Wrong Uses of Company Purpose A company or corporate purpose (statement) is meant to very succinctly communicate what a business firm is all about. It presents the (typically ambitious) long-term goal of the organization. It provi... 12   8 comments No WE Without WHY The foundation of virtually every organisation begins with a clear understanding of its purpose or intention. This is the motive driving the 'why' the organisation exists, why it strives to make produ... 11   1 comments Organizational Purpose of a Public Administration Organization What is the purpose of a public administration or non-profit organization? Thank you...... 5   2 comments

Expert Tips Advanced insights about Moral Purpose. Here you will find professional advices by experts. How to Articulate, Communicate and Deliver on a Corporate Purpose Statement How to Create a Corporate Purpose Statement, Corporate Mission, Organizational Purpose, Organizational Mission A Corporate Purpose Statement (CPS) has at least 3 major functions: market definition, employee motivation and external ... Functions and Goals of a Mission Statement Mission Statement Best Practices, Preparing a Mission Statement Defining the mission statement is a major part of the strategic planning process. A mission has three functions or goals... Typical Content of Value Statements Mission Statement Best Practices, Preparing a Mission Statement Common Topics in organization’s value statements, include: - Commitment to such outcomes as customer satisfaction and ... 4 Levers to Pursue a Dual Corporate Purpose CSR, Impact on Society, Balancing Financial and Social Goals, Dual Purpose These is a slow but steadily increasing trend for corporations to diminish their single-minded pursuit of shareholder va... How to Inject Corporate Purpose Into Corporate Governance Enacting Purpose, Organizational Purpose Implementation, Corporate Sustainability, ESG A nice output from the Enacting Purpose Initiative is a framework to help boards deliver on purpose: The SCORE framework... The Power of Moral Purpose The Role of Moral Purpose in the Recovery of Sandler O’Neill after 9/11 In the article "The power of Moral Purpose: Sandler O’Neill & Partners in the Aftermath of September 11th, 2001" Maltz a... The Impact of Mission Statements on Company Performance Strategy, Formulation Mission In a comparison of the performance of companies with “high-content” mission statements versus those with “low-content” m... The Maturity Stages of Corporate Responsibility Organizational Development, Corporate Responsibility Maturity Simon Zadek provides a useful best practice five-stage maturity model of how organizations deal with Corporate Responsib... Putting Purpose at the Core of Strategy Works Strategy, CSR, Stakeholder Management IMD Professor Malnight a.o. presented results of 8 years of study on high growth in companies, initially considering 3 d... The Endless Purpose Communicating the Company Purpose to Various Groups Statements are made to show others what we are standing for, but are they meant to share our purpose? And who do we want...

Information Sources Various sources of information regarding Moral Purpose. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops. Leadership, Moral Purpose and Change Leadership: the Role of Moral Purpose and Understanding Change By P. Bedford, A. Fossum, L. Maly and C. Rodriquez, 2009 uses definition by Fullan of Moral Purpose: “Moral purpose rel... How Great Leaders Inspire Action? They Start with Why Corporate Purpose, Organizational Purpose, Corporate Mission, Organizational Mission Famous TED speech by Simon Sinek. Sinek asks the question why some companies and leaders are much more successful than ... Martin's Trust Model: The Trust Matrix Trust, Corporate Reputation, Corporate Branding, Corporate Image An important determinant of the reputation of your brand, company or sector is TRUST. In the financial sector for exampl... Exceptional Speech by then 13 year-old Severn Suzuki at the UN, 2008 on Environmental and Social Responsibility Environmental Responsibility, Social Responsibility At the United Nations Conference on Environment and Development 2008, a 13 years old child, speaking for ECO, the Enviro... Perspectives on Moral Purpose Moral Purpose, Leadership Development Interesting presentation about Moral Purpose. The presentation includes various philosophies of moral purpose and descri... Martin Luther King: I Have a Dream... Documentary on Martin Luther King Arguably the most famous visionary speech ever, the 'I Have a Dream' - speech by Martin Luther King. August 28, 1963. W...

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Compare with Moral Purpose: Ashridge Mission Model  |  Seven Signs Of Ethical Collapse  |  Strategic Intent  |  Clarkson Principles  |  Intrinsic Stakeholder Commitment  |  Strategic Stakeholder Management  |  Seven Surprises  |  Stakeholder Value Perspective  |  Shareholder Value Perspective  |  Spiral Dynamics  |  Contingency Theory

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