Bridging the understanding of corporate purpose with its effectiveness: A systematic literature review and research directions

Abstract

The growing body of literature on corporate purpose has underscored its potential as a strategic driver for firms. However, its practical implementation remains challenging due to the concept’s multifaceted and often abstract nature. By reviewing 118 articles, this systematic literature review develops a process framework on how corporate purpose can be translated into concrete organizational strategies across three dimensions: antecedents, management, and consequences. Specifically, we identify the foundational conditions that shape a purpose statement in firms, examine how purpose is embedded and shared within them, and assess the multilevel outcomes of an effective purpose. The review highlights actionable levers to align purpose with strategy and practice, discussing how firms can implement their ‘reason why’. In doing so, the study provides contributions to better understand corporate purpose from both a theoretical and managerial perspective, within the broader field of strategic management.