A Deeper Look at the Return on Purpose: Before and During a Crisis

In October 2020, we published a study called “The Return on Purpose: Before and During a Crisis” that explored corporate approaches to purpose and their effect on financial performance and value.1 In this paper, we expand on that study with additional data and deeper analysis of the relationship of purpose to higher performance on financial, valuation, and value creation measures. We complement this with new statistical support to demonstrate the explanatory power of purpose on valuation, even after accounting for financial variables and other fixed effects. We conclude with practical first steps to better operationalize purpose in management decision-making.

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