Power of corporate purpose

: its impact on engagement and turnover intention, and amplified by person-organization fit

Abstract

In recent decades the interest from both academia and business in the concept of corporate purpose rose drastically, due to its various benefits to multiple stakeholder groups, the company, and the environment. A compelling corporate purpose can not only improve Employee satisfaction, commitment, and retention but also improve profitability and offer new strategic objectives. Due to its popularity and impact various companies try to find their purpose. However, the influence of employee perception on corporate purpose remains less explored. This dissertation examines how employees’ perception of the company’s purpose affects their engagement and turnover intentions. Furthermore, it explores the role of value congruence, specifically through person-organization fit, in moderating these effects. A methodological approach combining an online survey with 293 participants, with five semi-structured interviews, was used to investigate these relationships. The results demonstrate significant relationships between the perception of purpose and their engagement and turnover intentions. Additionally, an interaction effect between perceived purpose and Person-organization fit was identified, especially on turnover intention. The interviews gave a broader perspective on the perception of purpose, such as the importance of communication, or awareness. These findings highlight the importance of a clear corporate purpose in enhancing employee engagement and retention. The dissertation concludes with a discussion of its limitations and proposes avenues for future research.

Date of Award	25 Jun 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Moreira da Cruz (Supervisor)