Purpose-driven organizations are emerging as a new institutional form. While corporate purpose is often framed as a unifying force that fosters shared commitment, this chapter challenges that assumption by examining the complexities of collective sensemaking in the development of a new corporate purpose. Through a case study of “PurpCo,” we illustrate how members’ deep emotional attachment to personal values, the perceived heterogeneity of these values, and a highly democratic leadership approach led to tensions, conflicts, and fragmentation rather than convergence around a shared purpose. This case demonstrates that, despite collective commitment to “do good,” the interplay between values and emotions within sensemaking processes can destabilize collective alignment. It also highlights the critical role of deliberate leadership in managing these emotional and value-laden tensions, ensuring alignment between personal values and collective objectives. Ultimately, these insights deepen our understanding of purpose-driven organizing, a form of organizing that is emerging as a new institutional model in mainstream business.