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News24 | Marius Ungerer | Why purpose matters more than profit

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Employees are more committed when they believe in what they do.

Employees are more committed when they believe in what they do.

 Across South Africa and around the world, people are changing what they expect from work. A salary still matters, of course. But increasingly, it is not enough, writes Marius Ungerer.


People want to know that what they do has meaning. They want to grow, contribute and feel part of something worthwhile.

This shift is reshaping organisations. Companies are discovering that pay alone does not build loyalty, creativity or commitment. People stay where they feel valued. They perform where they feel connected. They thrive where they believe their work matters.

That is why purpose has moved from a soft idea to a strategic one.

For years, many businesses operated through hierarchy and control. Decisions were concentrated at the top. Employees were expected to comply, not contribute. It may have delivered efficiency, but it often came at the cost of innovation, trust and motivation.

Today, a different leadership model is gaining ground: stewardship.

Stewardship is the idea that leadership is not about holding power tightly but using it responsibly. It means creating trust, sharing responsibility, involving people in decisions and building organisations that serve a wider good.

In these workplaces, success is measured not only by profit, but by the value created for employees, customers, communities and the environment.

And contrary to popular belief, purpose and profit are not opposites.

Some of the world’s most successful companies are deeply clear about why they exist. Google set out to organise the world’s information. Netflix aims to entertain the world. Tesla focuses on accelerating sustainable transport. Patagonia built its identity around protecting the planet. Closer to home, Pep’s purpose is to make it possible for everyone to look and feel good.

These are not marketing slogans. They are directional compasses.

Every organisation needs such a compass, which I call a North Star. Purpose gives people clarity in uncertain times. It helps guide decisions, shape culture and align effort. Importantly, purpose is not fixed. It evolves as organisations learn and respond to a changing world.

Connecting individual and organisational purpose

But organisational purpose is only half the story.

Individuals also carry their own sense of purpose: their values, strengths and desire to make a difference. When personal purpose connects with organisational purpose, something powerful happens. Work becomes more than a transaction. It becomes a source of energy, pride and fulfilment.

Research repeatedly shows that human connection and meaningful relationships are among the strongest predictors of well-being. The same applies at work.

People who feel seen, supported and connected tend to contribute more and perform better.

So how does an organisation find real purpose?

It starts by asking difficult questions:

  • What problems in the world can we help solve?
  • What are our people passionate about?
  • What are we uniquely equipped to do well?
  • How do we create economic value?
  • How do we create societal value at the same time?

Where those answers meet, purpose begins to emerge.

Yet purpose only matters when it is lived.

That requires what I call practical idealism: the discipline to pursue worthwhile goals even when progress is slow, costly or imperfect. It means making decisions that reflect values, not just quarterly targets. It means understanding that long-term trust is often worth more than short-term gain.

The rise of purpose-driven organisations is not a passing trend. It reflects a deeper shift in how people understand success, leadership and work itself.

People want to belong. They want to contribute. They want their efforts to count.

Organisations that recognise this will do more than survive. They will attract talent, build resilience and create lasting value.

Because, in the end, profit is an outcome. Purpose is the reason people give their best to achieve it.

Marius Ungerer is Emeritus Professor at Stellenbosch Business School and the author of the recently released book entitled “Living our North Star: Aligning Spiritual and Management Innovation Practices”.

News24 encourages freedom of speech and the expression of diverse views. The views of columnists published on News24 are therefore their own and do not necessarily represent the views of News24.

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