In the modern business world, corporate purpose seems to have become a mandatory mantra. Every CEO talks about it, and every strategy refers to it. And every new employee recruitment campaign also makes it a key selling point. All companies want to be seen as having a ‘soul’, a mission that goes beyond simply pursuing profit. Unfortunately, however, behind all the hype lies a disturbing phenomenon we call purpose washing: when an organization claims to have an organizational culture and lofty goals, but in reality, its daily practices and behaviours are completely at odds with them.
This problem is far more serious than a mere communication error. Purpose washing will slowly erode the credibility of the organization, damage employee trust, and ultimately, defeat the business objectives themselves.
Purpose and Organizational Culture as Merely Ornaments
Look around us. Many companies now have impressive mission statements: “improving the welfare of society,” “pioneering a sustainable future,” or “empowering human potential.”
On the surface, everything sounds noble. However, take a deeper look.
Often, what we find are employees who are exhausted from having to chase inhuman targets, innovation that is stifled by convoluted bureaucracy, or business decisions that ignore the principles of sustainability in order to reap profits in the shortest possible time.
This is where ‘purpose’ loses its spirit and becomes nothing more than decoration—a beautiful but meaningless ornament of words.
In the context of organizational culture, this condition creates a deep divide between what is said and what is done. This gap stems from a fundamental misperception: companies often view the formulation of purpose as the finish line, a final product ready to be showcased. In fact, it should be the starting line, the beginning of a continuous behavioural transformation.
The essence of true organizational culture does not lie in beautiful or poetic sentences. It lies in the collective habits and actions carried out every day.
From the Boardroom to the Field: Putting the Organizational Vision to the Test
‘Visioning’ is a tool commonly used to design strategies and shape culture. This process helps organizations dream about the future—“what do we want to be like?”—and formulate the core values they want to embrace. However, danger lurks when this process stops at the announcement stage, without ever being followed up with implementation.
Meaningful visioning must be accompanied by a reality check, an honest moment to examine whether the values being espoused are truly alive in the daily pulse of the organization’s culture. The question is no longer “What are our ideals?” but “What are we doing today that proves we are worthy of realizing those ideals?”
For example, if a company upholds the value of collaboration, then the reality check is: Does the reward system prioritize team achievements or individual accomplishments? Do leaders truly open the door to hear voices from all levels, or only from their inner circle? When conflicts arise, are they resolved through open discussion or through politics and intrigue? These simple questions reflect the extent to which the organizational culture is truly alive and embraced by all members of the company.
Without the willingness to conduct this blunt reality check, organizations will fall into the trap of purpose washing—busy talking about dreams while turning a blind eye to the inconsistencies happening right under their noses.
The Jakarta Consulting Group has more than four decades of experience in helping various companies, ranging from state-owned enterprises, private companies, and giant multinationals, with visioning; aiming to mobilize members of the organization and provide clear direction and guidelines for achieving long-term goals, both for individuals and organizations.
The Hidden and Tangible Impact that Damages Organizational Psychology and Culture
Purpose washing is not just a matter of a bad image in the public eye. Its impact goes deep, damaging the psychological and cultural foundations of an organization.
When what they hear does not match what they experience, confusion, disappointment, and ultimately cynicism arise.
They will begin to view all company values as empty slogans and no longer trust internal communications. This discrepancy between words and actions slowly erodes the organizational culture. As a result, the values that should serve as guidelines lose their meaning in the eyes of employees. Purpose washing undermines the moral authority of leaders.
A leader who boasts about integrity but makes decisions that contradict those values will lose the respect of others. Over time, this fosters a culture of “pretending.” People will learn that the most important thing is to look good, not to be good. As a result, the organizational culture turns into a collective mask that distances the company from honesty and true learning.
Purpose washing kills the organization learning process. When all energy is focused on maintaining appearances, there is no room for introspection and improvement. Everyone is busy crafting beautiful words instead of improving their actions.
Meanwhile, the real impact, as stated by AlSalim and Etter, is a loss of trust, damage to reputation, and substantial financial losses.
Ultimately, all of this has an impact on the company’s competitiveness. In fact, according to the Harvard Business Review, culture is half or 50 percent of the factors that determine the competitiveness of one company over another in the same industry.
Building an Authentic Purpose: From Rhetoric to Action
So, how do we avoid this trap? The key lies in authenticity, which is the genuine alignment between words, decisions, and actions.
Organizational culture always starts at the top. Leaders cannot just be ‘spokespersons’ for purpose; they must be its ‘embodiment’. If a company promotes the value of “empathy,” then a leader must dare to show that empathy in difficult decisions, not just in rhetoric.
Organizations need to define clear behavioral indicators for each value they embrace. For example, the value of collaboration can be measured by how often cross-departmental projects are successful, the level of satisfaction with teamwork, or the way a manager mediates disputes. This way, culture is assessed based on visible evidence, not just rhetoric.
One of the biggest sources of purpose washing is internal systems that are not aligned with the values that are proclaimed. Payroll, promotion, and performance appraisal systems often still focus on instant short-term results, burying the noble values that are glorified. Therefore, integrating values into every system and procedure is a must. Purpose must be the lifeblood of an organization’s operations, not just a plaque on the wall.
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