Organizational Psychology

Purpose. The purpose of this article is to highlight the growing phenomenon of purpose-driven organizations and to explore the role of organizational values in the creation of such organizations. Given that there are different approaches to managing organizational values, particular attention is given to their need for balance, in the sense that the organization simultaneously promotes and develops values from different value categories. Approach. This paper presents the results of some recent research showing that today (1) the largest and most influential companies worldwide are managing their values in balanced way and that (2) managing values in a balanced way improves organizational effectiveness. Findings. Balanced values are helping organizations to focus on their key stakeholders and bring attention to the purpose of their businesses. Originality. This paper contributes to the understanding that the traditional old management logic is evolving into the new logic of purpose — modern businessmust produce a win-win result(s) for everyone rather than just for selected privileged stakeholders. The key to achieving this is focusing on organizational purpose.