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Emerging Multinationals Use
Purpose for Growth
Integrating a strong, cohesive purpose can ignite employee passion and drive growth, something
emerging market companies have become good at.
The Florida Ice and Farm Company (FIFCO), a Costa
Rican food and beverage company that counts
famous drinks labels Labatt beer and Milory
carbonated drinks among its products, says it brings
“a better way of living to the world.” It’s not a
mission statement or a contrived corporate value.
The company’s CEO, Ramon Mendiola calls this its
purpose.
FIFCO’s purpose is about more than just words. The
company has used the idea to energise its workforce
and define its place in the community; essential
foundations for its growth. In fact, Mendiola says the
company’s financial performance has been
strengthened by its “purpose and its triple bottom
line way of doing business.”
It’s not the only emerging firm that’s doing well by
doing good. Natura Cosmeticos, a household name
in cosmetics in Brazil calls itself the “wellbeing well”
company. In 2014, Natura attained “B Corp” status,
joining a community of organisations (and the first
publicly traded company) to reconcile economic
growth with the promotion of social and
environmental wellbeing. It’s no coincidence that
Natura is growing aggressively, with over 1 million
sales representatives across Brazil and increasingly
more in other countries.
Meanwhile in India, Tata Motors’ motto, “leadership
with trust”, defines its growth model, anchoring its
ambition to be a global company operating in
multiple countries, and at home anywhere in the
world, whilst carrying this sense of trust wherever it
goes.
Learning from the emergent
Firms around the world can learn about enterprise
purpose, its role and its power, from the experience
of these emerging multinationals, according to a
report from the World Economic Forum’s (WEF)
Global Agenda Council on Emerging Market
Multinationals.
The idea of a public role for enterprises, and hence
enterprise purpose, is spreading as governments
are increasingly being challenged to deliver the
progress that society is seeking. This may be
especially true in emerging markets, says Subi
Rangan, INSEAD Professor of Strategy and Chair of
the WEF Council on Emerging Multinationals.
Although it’s too early to say definitively, business
leaders believe that the energy of enterprise
purpose is reflected in stronger employee
engagement, greater productivity, greater trust in
society (potentially less costly regulation), and a
more adaptive and sustainable enterprise.
At a recent offsite of the WEF council on emerging