Abstract:
In recent decades, purpose has remained one of the most prominent subjects in
business sciences. Despite this, the evolution of purpose-driven and its underlying
conceptual framework remains opaque and unavailable to guide companies in their
strategic interventions. Using data from a sample of 266 employees in the FMCG
industry in South Africa, this study examined the relevance of a purpose-driven
strategy and the key enablers to sustain long-term customer loyalty and optimal
financial performance. Significant positive relationships between these core business
concepts were discovered. At a time when social and environmental consciousness
around capitalism is emphasised, companies must advance this agenda with all
stakeholders. This is evident in the data; employees are drawn to a greater purpose,
ethical leadership, and a meaningful corporate culture. This study formalises the
significance of a purpose-driven strategy and demonstrates how achieving this
correlates to customer loyalty, financial growth, and financial consistency. In this
quantitative analysis, critical enablers that might serve as a roadmap for companies
are identified. Furthermore, financial growth potential and financial consistency can
be achieved through the optimisation of financial performance and a
strong association exists with a purpose-driven strategy and customer loyalty.
Finally, this study provides empirical evidence which supports the relationships
between purpose-driven strategy, customer loyalty, and financial performance.
