Purpose in Business Models: Strategic Principles and Key Decisions

Albena Björck (), Carlo Pugnetti (), Nicole Steller (), Béatrice Vogel () and Aisha Aebischer
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Albena Björck: International Management Institute, ZHAW School of Management and Law
Carlo Pugnetti: Lucerne School of Business, Institute of Financial Services Zug IFZ
Nicole Steller: Witten/Herdecke University, Reinhard Mohn Institute of Management (RMI)
Béatrice Vogel: International Management Institute, ZHAW School of Management and Law

Chapter 7 in The Sustainable Organization, 2025, pp 145-170 from Springer

Abstract: Abstract Interest in corporate purpose has increased in recent years due to the need for authentic, pro-social, and profitable solutions to contemporary problems. Changing employee and customer expectations, coupled with new regulations and disruptive environmental changes, have pushed companies to define their true raison d’être, becoming purpose-oriented. Implementing purpose requires integration into a company’s strategy and business model. However, research on corporate purpose and business models has mainly focused on hybrid organizations, such as commercial non-profits, to analyze how they balance their attention between social and economic goals. Our research extends the analysis of this tradeoff to for-profit organizations using eight purpose-driven companies to determine which strategic principles and decisions have enabled companies to incorporate purpose into their business models. While not yet constituting best practices, the results show common patterns that allow harvesting the benefits of purpose while avoiding the pitfalls of inauthentic signaling. These patterns align with the Three-Pillar Model of Sustainable Purpose, Travelling Organization, and Connectivity (see. https://link.springer.com/chapter/10.1007/978-3-030-23227-6_3 ).

Keywords: Business model; Purpose-driven firm; strategic principles; decision-making (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/978-3-031-89549-4_7

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