Deconstructing Corporate Purpose: A Conceptual Framework in an Evolutionary Perspective

This paper introduces a novel multi-dimensional co-evolutionary framework for understanding and analysing corporate purpose, addressing its under-conceptualized nature and diverse interpretations in contemporary business studies. Grounded in the principles of coevolution and integrating Esposito De Falco’s (2012) framework on the genesis and evolution of firms, our work advances a unique theoretical typology of corporate purpose. This typology elucidates the evolutionary pathway of corporate purpose through the "3S" dimensions (structural, systemic, and strategic), offering organizations a guide to align their strategies with both their identity and public image. By examining corporate purpose through these dimensions, we highlight the interconnectedness of an organization’s intrinsic identity (structural), its engagement within its ecosystem (systemic), and the alignment of purpose with actionable strategies (strategic). This multi-dimensional approach reveals how corporate purpose guides firms through a transformative journey from their genesis to their interactions with stakeholders and broader market dynamics. To do this, the paper delineates four distinct typologies of corporate purpose: purpose washing, formal purpose, promising purpose, and deep purpose. These typologies are systematically organized within a synthesis matrix, providing a nuanced and detailed understanding of how corporate purpose manifests and evolves within different organizational contexts. Central to the study are two key propositions. The first proposition positions corporate purpose as the “metabolism of firms”, drawing a parallel with biological metabolism to underscore its crucial role in ensuring business survival, prosperity, and evolutionary adaptation. The second proposition emphasizes the importance of a sequential progression across the genetic, relational, and phenotypic stages of corporate purpose, which is critical for the design of genuinely purposeful organizations. By moving beyond a purely definitional approach, this paper contributes significantly to the ontological understanding of corporate purpose. It sheds light on the dynamics of purpose in organizations, highlighting its strategic importance and the need for alignment between a firm’s identity and actions. Our paper provides a valuable resource for academics and practitioners alike, seeking to navigate the complexities of corporate purpose in a dynamic business landscape.