What do we really mean by “purpose-driven businesses”?
DOI:
https://doi.org/10.7433/s126.2025.02Keywords:
purpose-driven businesses, social-oriented behaviours and strategiesAbstract
Purpose of the paper: The term purpose is increasingly used to characterise businesses which are not merely guided by a general mission but also by a social one. Given the popularity of the term, deeper analysis of the distinctions/similarities with other concepts are needed, which is the aim of the present paper, which also offers a detailed proposal of what can be meant by Purpose-Driven Businesses (PDBs).
Methodology: First, we comprehensively reviewed the literature on purpose-driven businesses; then, we discussed related theoretical approaches and managerial challenges; third, we tried to contribute with a definition of what a purpose-driven business is in the contemporary landscape.
Findings: We have specified the differences between purpose-driven businesses and other similar concepts. Also, we provided a list of characteristics that PDBs must have, might have and cannot have.
Research limits: Our study has a theoretical nature, but it was conducted with the collaboration of various scholars specialised in the field of purpose. Our (theoretical) findings may be useful for further empirical works.
Practical implications: This paper provides a robust and better understanding of what is meant by PDBs, and this can have practical implications not only in academia but also in business and policy contexts.
Originality of the paper: This paper provides an original and useful contribution for scholars and practitioners working in the field of PDBs.
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