What is the purpose of a company’s mission statement?

The purpose of a company’s mission statement is to communicate the company's core goals and reasons for existence. A mission statement serves as a foundational element for the organization, encapsulating its primary objectives, values, and what it seeks to achieve in the larger context of its market and society. It is a guiding beacon that helps align the efforts of employees and informs stakeholders about the company's purpose and intent.

A well-crafted mission statement addresses what the company does, who it serves, and how it approaches its work. It encapsulates the company's identity and strategic direction, making it easier for employees, customers, and investors to understand the company’s priorities and culture. This clear articulation of purpose not only inspires and motivates staff but also helps in decision-making processes.

While detailed operational plans, employee roles, and financial performance targets are important elements of a company's overall strategy, they serve different functions and are often derived from the overarching mission statement. The mission statement sets the stage for these operational aspects by laying out the fundamental reasons behind the company's operations.