ABSTRACT
Companies worldwide are encountering significant challenges as we face the consequences of decades of unsustainable business and consumption practices. Strategies and business models must be adapted to new circumstances, changing regulations, and the evolving expectations of both customers and employees. To do this successfully, managers should act based on norms and values shared by all relevant stakeholders to ensure the organization’s legitimacy. A transparent and concise corporate purpose provides clarity and meaning to navigate complexity, manage risk, and capitalize on new opportunities. However, not all companies succeed in formulating and implementing a corporate purpose that goes beyond mere marketing slogans. In the luxury industry, which has evolved from small workshops to global brands and conglomerates, corporate purpose is both conceptually underdeveloped and practically underutilized. In the present study, the authors attempt to narrow this gap and contribute to Transformative Luxury Research (TLR). Applying a qualitative exploratory research approach to the Swiss luxury watch sector, the authors propose conceptual pillars of luxury corporate purpose. In doing so, they uncover lingering tensions and challenges to employee well-being arising from the perceived misalignment of managerial actions with an artisanal work ethic. While the insights are purely exploratory and limited to the chosen context, they offer a starting point for further research in TLR, thus contributing to the field’s research agenda, and orientation to managers in and beyond the watch sector.
