What do we really mean by “purpose-driven businesses”?

Frame of the research: The concept of Purpose-driven Businesses (PDBs) has emerged as a response to pressing global challenges, including climate change, social inequality, and biodiversity loss, which call for a fundamental rethinking of the role of businesses in addressing societal and environmental needs. While the term has gained significant traction, its precise meaning remains ambiguous, often overlapping with existing constructs in management literature, such as Corporate Social Responsibility and Shared Value Creation. This study operates at the intersection of these theoretical perspectives, aiming to provide a structured analytical framework for understanding how PDBs incorporate social and environmental values into their strategies and balance the diverse expectations of stakeholders. Purpose of the paper: This paper is the end product of an extended conversation and debate between a number of business management scholars with a particular interest in the concept of Purpose. This concept has been increasingly used to characterise businesses which do not only have a conventional commercial purpose but also a social one. Despite the popularity of the term, the precise meaning of “purpose” remains somewhat unclear, especially when compared to the wide set of constructs which have already been used in business management literature to refer to similar types of business. A deeper analysis of the differences and similarities with other related concepts is thus needed. This paper summarizes the results of this discussion and provides a detailed definition of PDBs. Methodology: This paper is the result of an open debate on the concept of Purpose, which began with a series of face-to-face and online discussions between management scholars with an interest in this area. Firstly, the group of scholars who participated identified the existing literature on purpose-driven businesses. Next, the theoretical approaches that were most closely aligned with this concept were identified and each one of them was assigned to the person with the most expertise in that area so that they could examine it in more detail for the purposes of this article. Finally, an agreed definition of PDBs was produced. Findings: This paper sets out the differences between PDBs and other similar concepts. Further, we provide a list of characteristics that PDBs must have, may have, and cannot have. Research limitations: This article discusses theoretical approaches and is the result of collaboration between a number of scholars who specialize in the field. Our theoretical findings may suggest a way forward for future empirical studies. Practical implications: This paper provides a more nuanced and comprehensive understanding of what is meant by PDBs, with practical implications for managers working at both day-to-day and strategic levels. Originality of the paper: This analysis was the result of a process of discussion between scholars working in the area of PDBs. The checklist of the elements that characterise PDBs is intended to be a useful point of reference for scholars and professionals working in this field