LEADERS HAVE TROUBLE SETTING A STEADY BUSINESS PURPOSE
July research from brand consultancy Brandpie shows that 97% of CEOs think organisations need to have a purpose, whether it is a general interest aim, an environmental one or at least something more than just making profits. But according to this survey which took place in France, Germany, the US and the UK, only 29% of CEOs feel the purpose is better pursued thanks to them.
Indeed most of them (78%) admit that because of the 90-day window they have got to prove themselves in a company, they often choose to satisfy the shareholders first rather than following a long-term purpose, and especially when they are working in a company with an annual turnover of $50m or more. And it can’t be denied that since the 2008 financial crisis, the marketplace has become increasingly competitive and it is now really hard for CEOs to manage to satisfy both shareholders and a purpose at the same time, and moreover in a really short time.
However, 57% of CEOs are still aiming to satisfy the customer needs to create more value for the company. And the longer CEO has been in the company, the more they feel responsible for setting a business direction, as only 21% of CEOs who worked for less than a year feel that whether that number increases to 39% for 10 years or more CEOs. Yet that number remains very low and CEOs’ behaviour is quite far from consumers' expectations – since 64% of them would like CEOs to lead on social change, according to a recent Edelman Trust Barometer.