As societies become wealthier, we satisfy our material needs and are drawn to higher goals. Our highest need is to live lives that have meaning and purpose. The best leaders understand this, and work to give purpose to the teams and organizations they lead.

A shared purpose—the enduring value a company delivers in the world—is an organization’s most fundamental source of sustained performance. It motivates and engages us—as workers, as customers, and as investors. It binds us together in a common cause. It guides our choices. It encourages us to innovate and grow.

Giving purpose requires courage and grit. Sometimes, bureaucracy overwhelms an organization. Sometimes, the drive for profit grows so strong that it erodes the shared purpose, weakening the bond with workers and with customers. Many leaders declare a purpose. Authentic leaders live it, giving purpose through their behavior and actions.

Examples