Organizations use recognition primarily to create a positive environment and to motivate high performance.
Companies also report using recognition to:

Create a positive environment (80.7%)
Motivate high performance (75.2%)
Reinforce desired behaviors (69.5%)
Increase morale (65.3%)
Support mission and values (61.6%)
Increase retention (49.4%)
Encourage loyalty (38.1%)
Support culture change (23.1%)