It is generally assumed that a corporate purpose aiming to benefit all stakeholders has a positive effect on employee motivation and engagement, but no empirical studies into these specific effects were found. To examine this assumption, a corporate mission and vision matching the definition of a higher purpose were tested in two subsequent studies. The first study (N = 270) was a cross-sectional self-report study. The second study included a longitudinal design (N = 56) modeling purpose, motivation, and engagement in (...) a cross-lagged panel design over three time-points. The results associated purpose with motivation and engagement. The subsequent longitudinal analysis confirmed the presumed directionality from purpose to engagement, but not to motivation. Hence, while a corporate purpose can be added to the list of antecedents to work engagement, the relationship with motivation, despite the significant association with purpose in the cross-sectional study, remains more complicated. The present study adds to the knowledge of the beneficial effects of a broader purpose and responds to the current surge of interest in purpose as an instrument for sustainable business. (shrink)

Abstract: In this article, I offer a proposal to clarify what I believe is the proper relation between value maximization and stakeholder theory, which I call enlightened value maximization. Enlightened value maximization utilizes much of the structure of stakeholder theory but accepts maximization of the long-run value of the firm as the criterion for making the requisite tradeoffs among its stakeholders, and specifies long-term value maximization or value seeking as the firm’s objective. This proposal therefore solves the problems that arise (...) from the multiple objectives that accompany traditional stakeholder theory. I also discuss the Balanced Scorecard, which is the managerial equivalent of stakeholder theory, explaining how this theory is flawed because it presents managers with a scorecard that gives no score—that is, no single-valued measure of how they have performed. Thus managers evaluated with such a system (which can easily have two dozen measures and provides no information on the tradeoffs between them) have no way to make principled or purposeful decisions. The solution is to define a true (single dimensional) score for measuring performance for the organization or division (and it must be consistent with the organization’s strategy), and as long as their score is defined properly, (and for lower levels in the organization it will generally not be value) this will enhance their contribution to the firm. (shrink)

One can determine the nature of something by asking what it is for. For example one understands what a chair is when one understands it is for sitting on. This involves understanding its purpose. One type of corporation is the for-profit-corporation. This seems to indicate that this type of corporation, the business corporation, has as its purpose to make a profit. Is that as obvious as it first appears? The favorite way for philosophers to arrive at the "purpose" of anything (...) is to ask the question "Why?" But there are at least two answers to the question "Why"? when addressed to a social practice such as business. One might be asking for a psychological account (explanation) of "Why" a person does business, and this is primarily answered by discovering the motives behind business activity; or one might be asking for a justificatory reason (justification) for the practice – what purpose legitimates business as a human activity. These two answers are often conflated and thus the purpose of business is often considered to be answered by giving the psychological account of the self-interested profit-making motive. This paper will attempt to highlight the importance of making the distinction between motive and purpose clearly, show what confusions arise when the distinction is ignored, and hint at some of the structural philosophical reasons why the distinction got blurred in the first place. (shrink)

Much research has been done on the economic effects of self-employment, environmental conditions for entrepreneurial success, as well as attributes if the person him-/herself fits to this career path. To successfully run a business, however, is contingent on the health of the entrepreneur. In particular, small business owners (being solo self-employed without personnel) face financial uncertainties, a high workload, long working hours, and are often unable to call in sick. This study aimed at exploring the working situation considering resources (e.g., (...) autonomy), strain (e.g., dependency on contracts with clients) and health and career outcomes of small business owners. This study used a qualitative approach to comprehensively mirror the working situation. Participants who were 29 small business owners from Germany gave permission for recording expert interviews in which they reported, for example, on health complaints, recovery opportunities, obstacles and resources while running their businesses. The interviews emphasize the meaning of active actions and own responsibility for creating working conditions and enabling autonomy. Small business owners yet have to be able to use the autonomy. Besides personal preferences regarding the career path as being pulled into self-employment and not pushed by situational circumstances also marketability and flexibility played a role and explained health and career issues. Our findings underline that the social network is of utmost importance to small business owners and that social support – even or despite of being solo self-employed – is a key to sustaining health and satisfaction. As voluntariness played an essential role for selecting this specific career path those being pulled into self-employment as no other jobs are available should receive particular support through career counseling. One shortcoming of prior research is that the concrete working situation of small business owners and its impact on health and career has not adequately been taken into account. Based on work-related stress models we developed a frame model specific for the situation of small business owners which allows concrete hypotheses for further quantitative research. (shrink)

Purpose driven companies have developed their corporate culture with a commitment to stakeholders, Sustainable Development Goals, and social responsibility, prioritizing the management of organizational intangibles over capital. The overall objective of this research is to gain knowledge regarding the attention and emotional intensity registered by young Spanish university students when visualizing corporate purpose versus corporate visual identity, as well as the image of the Chairman of the main Spanish companies quoted on the IBEX 35. The techniques of eye tracking and (...) galvanic skin response have been used with 31 Spanish university students. The results suggest that brands with the highest brand equity in the Interbrand ranking are also the ones that receive the highest levels of attention and emotional arousal, and that a well-formulated corporate purpose is not enough to satisfy the public if company credibility is low due to previous perceptions of an organization. (shrink)

The interest in meaningful work has significantly increased over the last two decades. Much of the associated managerial research has focused on researching ways to 'provide and manage meaning' through leadership or organizational culture. This stands in sharp contrast with the literature of the humanities which suggests that meaningfulness does not need to be provided, as the distinct feature of a human being is that he or she has an intrinsic 'will to meaning'. The research that has been done based (...) on the humanistic paradigm has been quite fragmented. This article aims to address these gaps through an action research project that actively involved participants in the process of affirming and uncovering the meaningfulness of their work. Our findings contribute to current organizational scholarship and practice as they enable scholars to clearly distinguish 'meaningful work' from 'the management of meaning', bring together the various sources of meaningful work in one framework and show their relationship with each other, clearly show the importance of engaging with both the inspiration towards the ideal as well as the often less than perfect self and the organizational reality in which meaning gets expressed and contribute to our understanding of how to engage individuals in conversations about meaningful work that are not prescriptive or exclusive, but that also show where meanings are commonly held. (shrink)

Tourism is capable of distributing wealth and participating substantially in the economic development of many countries. However, to ensure these benefits, the planning, management, and monitoring of a sustainable offer become crucial. Despite the increasingly widespread attention to sustainability in this sector, however, the concept of sustainable tourism still appears fragmented and fuzzy. The theoretical frameworks used in many studies often reduce sustainability to its environmental or social aspects and consider such pillars as separate issues. Furthermore, although most studies acknowledge (...) that a potentially wide number of stakeholders play a role in sustainable tourism production, they have so far focused on host communities, tourism producers, or tourists themselves independently. Fewer explorations have addressed simultaneously different stakeholders, their perceptions of sustainable tourism experience, and the various concerns and tensions that may arise. This study aims to investigate sustainability issues in tourism by considering the voices of two relevant stakeholders involved in “co-producing” the tourism experience: tourists and tour operators. Based on a qualitative study conducted in Italy, the article critically discusses how travelers and tour operators craft the sustainability idea, the implicit assumptions that rely on their different perspectives, and their practical implications. The results highlight four different narratives on sustainable tourism, which are related to different assumptions on sustainability and actions legitimated to generate sustainable value. Finally, the article offers insights into how to develop a more holistic and critical approach to sustainable tourism through education and communication. (shrink)