Question 1

Isn't the sole responsibility of companies to make a profit?

Accepted Answer

Milton Friedman, one of the most prominent economists of the last century, argued that the sole responsibility of companies is to generate profit and that they are accountable only to their business and working partners. However, this understanding has led us to a point where six of the nine planetary boundaries have been crossed, half of the global population lives in severe poverty with a household income between $1 and $8 per day, and we are on the brink of a sixth mass extinction, losing forty thousand species annually. According to Stephen Hawking, humanity could be living in its final century on Earth. If American capitalism is as successful and sufficient as it claims to be, then why is the world in its current state?

Companies must evolve beyond being mere entities that generate income for founders and stakeholders or provide products and services to customers. They must transform into collective organizations driven by a philosophy and mission to improve the world. Unless every company becomes a stronghold genuinely battling social issues, it seems unrealistic for us to solve the deepening social problems caused by a growing population and the massive concentration of power in the hands of a minority.

Question 2

If we transition to the PurposePact model, how exactly will It benefit us and our business activities?

Accepted Answer

With PurposePact, you will experience the following benefits:

• Strengthened Collaboration: When employees see income equity within the organization, their collaboration will be strengthened, loyalty and motivation will increase, and turnover rates will decrease.
 • Increased Trust and Engagement: The belief in your company’s commitment to its mission will grow among your team, customers, suppliers, business partners, and the international community. Over time, they will become more committed and motivated to go above and beyond for your company.
 • Increased Enthusiasm: Your founders will have the opportunity to authentically engage in a social cause aligned with their life goals, achieve self-fulfillment, and leave a valuable legacy for humanity.
 • Industry Recognition: Your organization will become an industry role model, admired and emulated by others, particularly by younger generations.
 • Enhanced Efficiency and Innovation: As all resources are directed towards purpose-driven activities, your company's efficiency, productivity, and innovation indices will improve.
 • Improved Financial Value: As expenditures decrease, the financial value of your company will increase.
 • Greater Customer Loyalty: Customers will have a stronger motivation to choose your products and services. Customer retention will improve in the face of price changes, leading to increased customer loyalty.
 • Brand Heroism: Over time, your company will create a "hero brand" perception in people’s minds, making your brand stand out and giving you a competitive edge.

Question 3

Our company already complies with environmental protocols, so why do we need PurposePact?

Accepted Answer

While models like ESG standards, the UN Global Compact, IFRS International Sustainability Standards Board, People & Planet, B Corp, WFTO, TÜV, and UK Veritas are indeed inspiring in guiding organizations towards social impact, they are unfortunately insufficient on their own. These protocols primarily ensure that companies do not harm the environment and that they act with environmental responsibility. However, none of these frameworks invite a company to comprehensively direct all its resources towards a specific mission.

The certifications you have obtained or plan to obtain from these organizations can attest that your operations are carried out without causing environmental harm and with consideration for sustainability. However, PurposePact goes beyond environmental responsibility—it aims to transform companies into strongholds that fight social issues with a genuine sense of unity.

Question 4

Would allowing all employees to see the salary scale lead to internal discontent?

Accepted Answer

It will, if there are extreme disparities in salaries and/or if the reasons for these payments are unclear.

Today, the amount needed for a healthy standard of living is roughly known in every country. This can be assessed by considering key benchmarks such as the poverty line and minimum wage in the respective country. If the salaries paid by the organization are significantly above or below these averages, it could lead employees to question the fairness of the system. Particularly, paying astronomical salaries to executives may cause both customers and other employees to question the sincerity of your commitment to the manifesto. It becomes unclear whether the priority is the defined mission or high personal income. This damages the sense of unity among stakeholders and disrupts the focus. Unity and solidarity cannot exist among individuals who keep their salaries secret from one another.

With PurposePact, the questions and debates within your team will be replaced by collaboration as employees recognize that they are working under fair and reasonable conditions. People should want to work with your organization because they are genuinely committed to your mission, not because of the lure of exorbitant salaries. Moreover, there is substantial scientific evidence suggesting that extremely high salaries do not foster high motivation and may even undermine the company’s mission and values.

Question 5

Why should the income gap between the lowest and highest employee not exceed seven times?

Accepted Answer

For your organization to cultivate a sense of unity and dedicate all employees—from the bottom to the top—to a shared mission, salary disparities must remain reasonable, much like in governments and militaries. In companies where the income gap is extremely wide, employees tend to focus on wealth accumulation rather than the mission itself, preventing full alignment with the organization’s purpose. No organization where an executive earns 200 times more than an entry-level employee can genuinely claim that its mission and values are the priority.

In some of the world's most powerful militaries, where hundreds of thousands of individuals have worked cooperatively over extended periods to build states and vast economies, the income disparity between the lowest and highest-ranking personnel does not exceed seven times. Militaries are the clearest evidence that this controlled disparity does not undermine collaboration but rather strengthens it. By maintaining this reasonable range, an organization can prioritize its mission effectively.

Question 6

Why should the highest salary not exceed 15 Times the minimum wage?

Accepted Answer

If your organization aims to become a beacon of social justice and dedicate itself to a collective social struggle along with its team, it must remain connected to the realities of the community it serves. Your company must convince all stakeholders that it has a purpose beyond wealth generation and accumulation. Only in this way can the public be assured of the organization’s genuine commitment, priority, and sincerity regarding its mission.

Moreover, when you do not offer astronomical salaries, it becomes easier to attract individuals who are genuinely committed to your mission. You work with people who truly believe in your purpose. You ensure that what keeps your employees together is their dedication to the mission and values—not a desire for wealth. Such a team will remain with your company during challenging times, committed to the cause, with a lower likelihood of leaving for higher salaries elsewhere.

Consider that throughout history, the highest-ranking officers of the world's most enduring and powerful militaries—which have built nations and vast economies through the collaborative efforts of hundreds of thousands—have earned, including bonuses and duty allowances, no more than 15 to 17 times the country's minimum wage. This financial structure ensures that armies remain connected to the societies they serve and can secure voluntary support when needed. As a result, people stand by their armies.

If you wish for your customers and, more broadly, the public to genuinely support you and your organization, you should avoid creating a vast disparity between the income you distribute and that of ordinary citizens. With this principle in mind, PPACT has established an upper limit for the highest income at 20 times the minimum wage.

Question 7

Within the scope of PPACT, can we also offer our managers and employees different forms of support besides salaries and bonuses?

Accepted Answer

Yes. In accordance with your company policies, and as long as it does not promote ultra-luxury, you may grant special privileges and rights to your employees and managers. You can take steps that contribute to their education and quality of life, establish funds, and even implement measures to enhance the well-being of their families. However, these initiatives should be inclusive and reasonable. For instance, if a manager opts for a company car worth hundreds of thousands of dollars instead of tens of thousands, or incurs noticeable expenses like flying first class, such supports—which are not inclusive from the employees' perspective—can harm the culture of collective effort among the organization's stakeholders and may lower your PPACT test score.

Question 8

How are management's expenditures monitored to ensure they do not fall into the super-luxury category?

Accepted Answer

First-class flights, luxurious dinners charged to the company, extravagant trips, or super-luxury company cars have no connection to our purpose—and they shouldn't.

If senior management uses the resources generated by the organization's collective efforts for such luxuries, employees and stakeholders will also focus on their comfort zones. This undermines the commitment to the mission.

Through the annual "PPACT Test" conducted for your organization, all stakeholders—especially employees—are asked about senior management's tendency towards luxury. This ensures that your management’s focus on comfort is regularly audited by your stakeholders.

Question 9

What is the PPACT survey conducted for employees?

Accepted Answer

As a PurposePact signatory, an anonymous survey will be conducted annually with all employees and stakeholders, with the results reported to management and the public. This survey includes questions that thoroughly examine employees' trust and belief in the organization, the alignment of expenditures with the mission, and emotional trust in management. This helps assess the level of unity within the organization. The expectation is that at least 80% of employees and stakeholders will express trust in the organization through their responses.

Question 10

We are already audited by independent audit firms. Doesn't that show that we are transparent?

Accepted Answer

No. Standard audits and full certification protocols conducted by independent audit firms only prove that you comply with the financial laws and social security regulations of the respective country.
To qualify under the PurposePact framework, an authorized independent audit firm must issue a "Trust Report" verifying your compliance with PPACT criteria.

Question 11

What should the report from the independent audit firm include?

Accepted Answer

To join the PurposePact movement, the trust report from the independent audit firm must confirm the following:

1. Salary/Bonus Scale: The salary/bonus scale announced on your website is being implemented.
2. No Dividend Distribution: Profits are not being distributed as dividends.
3. Income Gap Compliance: The income disparity between the lowest-paid employee and the highest executive does not exceed seven times.
4. Executive Income Cap: The income of the highest-level executive does not exceed 15 times the minimum wage.
5. Passive Founder Compensation: Any payments made to a passive founder do not exceed 5 times the minimum wage.
6. PPACT Test Score: The company’s score from the PPACT test.

This report must be renewed annually and published on the page of the company website containing the manifesto and salary/bonus tables.

Question 12

What types of organizations can become signatories of PurposePact?

Accepted Answer

PurposePact is fundamentally a pact designed for profit-driven companies to place social impact at the core of their operations. It aims to blend capitalist practices with a socially focused approach.

Therefore, only for-profit companies can become signatories. Non-profit organizations such as NGOs, public institutions, or foundations fall outside the PurposePact framework. However, economic enterprises affiliated with these non-profit organizations can also become PurposePact signatories.

Question 13

How PurposePact movement first initiated?

Accepted Answer

PurposePact was initially launched under the name Open Account Pact (Açık Hesap Paktı) by Sarpaş Danışmanlık A.Ş. in 2022. The concept was first introduced by Berke Sarpaş and outlined in the book "Girişim Savaşçılığı Perspektifi: Yeni Düzende Girişimcilik ve Markalaşma" (Venture Warrior Perspective: Entrepreneurship and Branding in the New Order), published by Alfa Publishing in May 2022. The model underwent significant development in 2023 and was introduced to institutions under its new name in 2024.

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