69% of employees who strongly agree that their leaders make them enthusiastic about the future are engaged, versus 1% who disagree.
Research & implications
The Research behind Purpose & Vision
For many years I have worked on Purpose and Vision, in client projects and, alongside them, in the research and literature. This page brings together what I have found on the research side: the key studies, how robust they are, and what they mean for leaders.
Before we turn to the studies, four remarks on how to read them.
With that in mind, here is what the studies have in common. Four patterns run across all five categories, and they are the part I would ask you to remember.
4 Patterns across the Research
Not every finding is equally strong. Looking at the studies together, I have identified 4 clear patterns that run across all 5 categories. They align closely with what I have seen in 25 years of working with clients and projects addressing these questions.
It is also the reason I keep insisting on a Purpose being authentic: inauthenticity tends to be detected immediately and then produces the opposite of the intended effect. Yet both organizations and individuals often struggle to define a real Purpose, one that encapsulates the DNA of the company. See my article Does your Company pursue a real or pseudo Purpose?
1Purpose needs direction
Purpose works best when it comes with clear direction. In a study based on about 500,000 employee responses, companies that combined a strong Purpose with clear direction from management outperformed on profitability and stock returns. Purpose without that clarity showed no clear link in this study.
Core study
Gartenberg, Prat & Serafeim, 2019
Supported by
Gallup, 2015 and Gallup, 2026 · McKinsey, 2017 · Kirkpatrick & Locke, 1996 · Carton, 2018
2Purpose gives meaning, Vision gives direction
Meaningful work is strongly linked to engagement, commitment and job satisfaction. Clear goals are among the best-established drivers of performance, and a shared Vision is the strongest team-level predictor of innovation. A Vision works best when it is vivid, focused on a few core values and translated into everyday work.
Meta-analyses
Allan et al., 2019 · Hülsheger, Anderson & Salgado, 2009
Supported by
Locke & Latham, 2002 · Carton, Murphy & Clark, 2014 · Carton, 2018
3Statements alone move little
Purpose, Mission and value statements on their own show little effect. Results appear where Purpose is built into management systems, decisions and daily work, and where employees see their leaders act on it.
Meta-analysis
Desmidt, Prinzie & Decramer, 2011
Supported by
Guiso, Sapienza & Zingales, 2015 · CECP, 2026 · Kirkpatrick & Locke, 1996
4Authenticity is key
People respond to Purpose when they believe the organization can live up to it. Claims that are not backed by action backfire, with employees and with customers.
Supported by
Valdés et al., 2026 · Scheidler et al., 2019 · Walter et al., 2024 · Accenture, 2018
The Research grouped
by the 5 Categories
Category
Research
Type / Evidence
1Employee Engagement
People engage more when they understand why their organization exists and see where it is heading.
In the overview
77% of employees are engaged when their company’s Purpose is lived and aligned with their own, versus 20% when it is neither.
Show further researchHide further research4 studies
Meaning drives engagement. Meaningful work shows large correlations with engagement, commitment and job satisfaction.
A wide gap in practice. Only 16% of US employees say their company’s leadership makes them enthusiastic about the future.
Vision needs implementation. In a controlled experiment, a leader’s Vision mainly changed followers’ attitudes. Concrete task cues that put the Vision into practice raised performance.
Connect daily work to the aspiration. Lofty aspirations motivate when leaders show how everyday tasks contribute to them. Without that link, their breadth makes it hard for employees to see what their own work changes.
2Talent Attraction & Retention
A credible Purpose helps organizations attract people and keep them.
In the overview
At companies with more than 1,000 employees, job postings that convey a strong Purpose receive about 50% more applications. In firms with fewer than 50 employees, the gain is about 10%.
The authors link the difference to how credible a Purpose claim appears.
Deloitte reports that Purpose-driven companies achieve 40% higher workforce retention than their competitors.
The underlying data are not published.
Show further researchHide further research4 studies
Purpose works like a pay rise. In a hiring field experiment, describing the work as socially oriented raised applications by 25%, comparable to a 36% wage increase, and attracted more productive workers.
Working paper, not yet peer-reviewed.
People accept less pay for Purpose. Prospective workers submitted 44% lower wage bids for the same job after learning about the employer’s social responsibility.
Integration lowers turnover. Companies that build Purpose into their management systems show lower voluntary turnover than companies with lower integration.
Hypocrisy drives people away. Companies that invest more in external good causes than in their own employees are seen as hypocritical. This raises exhaustion, intentions to quit and actual turnover.
3Innovation
Teams that share a clear Vision show more innovation.
In the overview
Of 15 team factors studied, a shared Vision showed the strongest link to innovation.
Vision is measured at team level, as clear objectives the team is committed to.
Companies with integrated Purpose-driven management systems report 30% higher innovation rates than their peers.
Self-reported; the public report does not show how innovation was measured.
Show further researchHide further research3 studies
Vision-led leadership supports innovation. Transformational leadership is reliably linked to innovation and creativity. For creativity, authentic and empowering leadership show even stronger links.
Vision needs room to act. Visionary leadership raised follower effort and innovation only when leaders had real decision-making autonomy.
Vision bonds top teams. When CEOs articulate a Vision, their top management teams bond more strongly, which is linked to more corporate entrepreneurship. The effect appeared in top teams with high gender diversity, not in those with low diversity.
4Customer Loyalty
Customers reward companies whose Purpose they believe in.
In the overview
Consumers are 4 times more likely to buy from, and 6 times more likely to protect, companies they believe have a strong Purpose.
Measures stated intentions.
Brands with a strong Purpose grew their brand value by 175% over 12 years, more than double the growth of brands with a weaker Purpose.
Show further researchHide further research3 studies
Purpose has to make the brand distinctive. Brand Purpose raised loyalty only by making the brand more distinctive. It had no direct effect on loyalty.
Woke washing backfires. An authentic brand Purpose raised credibility. A Purpose claim without substance did worse than saying nothing.
Customers leave when Purpose is betrayed. 63% prefer to buy from companies whose Purpose reflects their values. Of those disappointed by how a company acted, 47% stopped buying from it.
5Financial Results
Purpose pays off financially when it comes with clear direction.
In the overview
Companies in the top fifth for Purpose combined with “clarity in the path” (Vision) earned 6.9% annual excess stock returns.
The quality and content of a CEO’s Vision predicted later venture growth, directly and through how it was communicated.
Show further researchHide further research5 studies
Purpose-led companies outgrow their rivals. 80% of companies that outgrow their competitors on revenue link everything they do to a clear brand Purpose, versus 32% of under-performers.
Performance is self-reported.
Proclaimed values are not enough. Values advertised on corporate websites showed no link to performance. Where employees saw top management as trustworthy and ethical, performance was stronger.
Healthy organizations outperform. Companies in the top quartile of organizational health deliver about three times the shareholder returns of the bottom quartile. Clear direction is one of nine health dimensions.
Vivid visions with few values perform better. Hospitals whose leaders combined vivid imagery with a few core values performed better on heart-attack readmissions. Most organizations do the opposite: little imagery, many values.
Bold visions get start-ups funded, with smaller cheques. A more disruptive Vision raised the odds of a first funding round by 22% and reduced the amount raised by 24%.
References
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Last updated October 2026
