How To Write a Company Purpose Statement (+ 21 Real Company Examples)
Profits are great, but what’s your ‘Why’? A strong purpose statement becomes your company’s North Star, guiding employees & attracting talent. Learn how to write yours.
A purpose statement is like a company’s guiding star. It explains the “why” behind their actions beyond just making money. It declares why the company exists and what impact it wants to make in society.
A WeSpire study revealed that Gen Z workers were the first to prioritize purpose over salary. They must see the connection between their actions and the broader social impact. 75% of respondents surveyed believed that work should have a greater meaning than just bringing home the bacon. They are looking for positive, purposeful, and significant roles.
Contents
What is a purpose statement?
The role of HR in developing a company purpose statement
How to write a purpose statement
5 actionable steps for HR when crafting a purpose statement
Sample company purpose statement
21 company purpose statement examples
What is a purpose statement?
Purpose statements are the core beliefs guiding the organization’s decision-making and culture. It is a powerful tool for attracting and retaining talent. Candidates are drawn to companies that stand for something bigger than themselves.
A strong purpose statement resonates with potential employees, which helps in creating a robust workforce. It also helps build customer loyalty. Customers support brands that share their values. A compelling purpose statement can foster loyalty with customers who trust companies that align with their beliefs.
Company vs. personal purpose statements
Personal purpose statements
- A personal purpose statement is your internal compass
- More subjective and reflects the unique motivations and aspirations of a person.
- Mainly written for yourself, explaining your life goals and motivations.
Company purpose statements
- A company purpose statement is the guiding principle of the entire organization.
- Broader and consider the impact on a large scale, like solving environmental problems or promoting social justice.
- Targeted at employees, customers, and investors to inspire and build trust with stakeholders.
Purpose statement vs. mission statement: The difference
Outlines the company’s primary purpose and objectives. It defines what the company does, its customers, and how they serve them. The mission statement concentrates on the company’s daily operations and priorities.
Communicates the bigger impact or contribution it aims to make to society, communities, or the whole world. More than making business, it explains the reason for the company’s existence.
Outlines the company’s primary purpose and objectives. It defines what the company does, its customers, and how they serve them. The mission statement concentrates on the company’s daily operations and priorities.
Usually focuses on the organization’s long-term aspirations and the positive change it wants to create. It inspires and motivates employees, customers, investors, communities, and other stakeholders.
Outlines specific goals or outcomes the organization wants to accomplish in the short to medium term.
Emphasizes values, principles, and ideals that guide the organization’s long-term actions and decisions.
The role of HR in developing a company purpose statement
HR forges a strong connection between employees, leadership, and the company’s purpose, ensuring it drives the organization’s success.
Here’s how Human Resources plays a role in developing the organization’s purpose statement:
- Aligning employee and company motivations and aspirations: HR interacts with employees. Through staff surveys and meetings, they gather insights into their motivations and aspirations and how these align with the company’s potential purpose.
- Aligning company culture and purpose: HR ensures that the purpose statement reflects the company’s values and how it resonates with the culture.
- Promoting holistic insights across the organization: HR can organize discussions with staff from different ranks and departments, customers, partners, and other stakeholders to gain a holistic view of the company’s purpose.
- Communicating the organization’s purpose: HR plays a vital role in communicating the company’s purpose to the employees. This ensures that everyone understands how their work contributes to the company’s bigger purpose, fostering employee engagement.
- The purpose statement guides policy and initiative development: HR can use the company’s purpose to guide policies, programs, and initiatives.
- Creating attractive talent acquisition strategies: A clear purpose statement can be a powerful tool in attracting talent who share the employer’s values and aspirations. HR can use the purpose statement when creating recruitment and employer branding strategies.
How to write a purpose statement
To create a purpose statement that truly reflects your organization, consider the following elements:
Values
These are the fundamental beliefs that shape your company’s culture. They influence the way employees work together and decide. Think about how they shape your organization’s identity and purpose and ensure they are reflected in your mission statement.
For instance, if collaboration and innovation are your company’s core principles, your purpose statement should match these values and communicate how they drive your organization’s purpose.
Stakeholders
These are the people and groups with a significant interest in your business, such as your staff, clients, shareholders, vendors, and local communities. Consider their perspectives, needs, and expectations to ensure alignment when formulating your purpose statement.
For example, a statement highlighting customer satisfaction and social responsibility will help build stronger relationships with customers and communities, ultimately nurturing trust and loyalty.
Long-term goals
Your purpose statement should align with your company’s goals and aspirations. Explain how your goals coincide with your anticipated results, impact, and legacy.
For instance, if you desire to become a global leader in sustainability technology, your purpose statement should highlight your commitment to sustainability, innovation, and global impact.
Impact
Consider your organization’s financial success and the wider societal and environmental effects it wants to achieve. Recognize important social, environmental, and economic issues and explain how your goals aim to tackle them.
For example, a purpose statement for a healthcare organization may emphasize advancing medical research to cure cancer, focusing on its broader societal impact beyond giving healthcare services.
Authenticity
Your purpose statement must be sincere, transparent, and aligned with the organization’s values, culture, and actions. It should accurately represent the organization’s leaders and employees’ true intentions and beliefs.
When creating a purpose statement, it’s important to avoid generic statements. Being authentic builds credibility with stakeholders, improving engagement and commitment to the organization’s purpose.
5 actionable steps for HR when crafting a purpose statement
1. Build a team and collaborate
Crafting a company’s purpose statement is a team effort that should involve different groups of stakeholders. So, it’s imperative to build a cross-functional team to brainstorm ideas. Encourage open dialogues and active participation from staff of all levels. Assemble a representative individual or team from various departments, e.g., Sales, Marketing, Operations, Finance, IT, etc.
HR can employ various techniques to facilitate collaboration, such as design thinking workshops, brainstorming sessions, or virtual idea-sharing platforms.
2. Research and analyze
Survey or interview employees, customers, potential suppliers, and community members. Ask questions about understanding the company culture and mission and identifying impact and contributions:
- What values do you believe are essential to our company?
- Which values do you think define our company culture the most?
- What do you think is the primary purpose of our organization?
- In what ways do you believe our company contributes to the wellbeing of our customers, communities, and stakeholders?
- How do you envision our company making a difference in the future?
- Where do you see our company in the next 5–10 years?
- What are your aspirations for the future of our organization?
By gathering and analyzing this data, HR gains valuable insights to inform the development of a purpose statement that resonates with stakeholders and aligns with market trends.
HR tip
You can also analyze industry trends and competitor purpose statements to inspire your own and consider how yours differs.
3. Crafting the purpose statement
Keep your statement concise and clear. It should focus on the organization’s reason for existence and ensure it aligns with its mission, values, and strategic objectives. It should also authentically reflect the organization’s values and resonate with internal and external stakeholders.
Based on your analysis and research, you may have many complex ideas, so HR professionals must simplify them with simple and impactful language. Use storytelling techniques to make your purpose statement engaging and memorable.
HR tip
Aim for a short and clear company purpose statement. Ideally, it should be around 1–2 sentences that are easy to understand and remember.
Avoid jargon and complex sentences.
4. Ask for feedback and finalize your purpose statement
Share the draft with the team and broader stakeholders. Solicit feedback from the employees, managers, customers, and other stakeholders. This will identify gaps and clarify any misunderstandings. It will also confirm that the purpose statement is inclusive and relevant to all stakeholders.
Based on their feedback, refine your statement to ensure clarity, conciseness, and inspiration. Remember to have the company’s leadership team review and approve it.
5. Create a communication plan
Once finalized, develop a comprehensive communication plan to roll out the purpose statement internally and externally effectively. Present the statement to employees via town hall meetings, intranet announcements, and integration into training and onboarding materials.
Externally, work with marketing to integrate the purpose statement into your company website, marketing materials, and social media presence.
Sample company purpose statement
“To empower individuals and communities to thrive by providing innovative solutions and exceptional service, guided by our commitment to integrity, diversity, and sustainability.”
In this example, the purpose statement articulates the organization’s commitment to empowerment, innovation, and service excellence. It emphasizes integrity, diversity, and sustainability values, reflecting the organization’s ethical stance and long-term vision for positive impact.
Tips for writing a good purpose statement
- Be inspirational: A compelling purpose statement should evoke positive emotions and inspire action. It should go beyond profit and appeal to employee’s motivations.
- Be specific and authentic: Avoid generic statements and clichés. Instead, articulate what makes your organization unique and why its purpose is meaningful.
- Be future-oriented: The purpose statement should convey a sense of vision and optimism about the organization’s future impact. It should inspire stakeholders to join in shaping a better tomorrow.
- Be actionable: A good purpose statement guides decision-making and behavior within the organization. It should serve as a compass, informing strategic priorities, operational decisions, and employee actions.
- Be inclusive: Ensure the purpose statement reflects all stakeholders’ diverse perspectives and interests. Consider the perspectives of all stakeholders, including employees, customers, partners, and communities. An inclusive purpose statement fosters a sense of belonging and alignment among diverse stakeholders.
21 company purpose statement examples
- Intel: We create world-changing technology that improves the life of every person on the planet.
- Boston Consulting Group: Unlocking the potential of those who advance the world
- Novartis: Reimagine medicine to improve and extend people’s lives
- Unilever: Make sustainable living commonplace
- Walmart: We aim to build a better world — helping people live better and renew the planet while building thriving, resilient communities. For us, this means working to create opportunity, make a more sustainable future, advance diversity, equity, and inclusion, and bring communities closer together.
- Pfizer: Deliver breakthroughs that change patients’ lives. R&D is at the heart of fulfilling Pfizer’s purpose as we work to translate advanced science and technologies into the therapies that matter most.
- McDonald’s: Feed and foster communities
- Goldman Sachs: We aspire to be the world’s most exceptional financial institution, united by our shared values of partnership, client service, integrity, and excellence.
- Coca-Cola: To refresh the world and make a difference.
- Vodafone: To connect for a better future
- Sony: Fill the world with emotion through the power of creativity and technology
- United Airlines: Connecting People. Uniting the World” drives our decision-making, supported by our core values – Safety, Caring, Dependability, and Efficiency. In action, that means doing the right thing for our planet, our passengers, and our people.
- Mondelez: We empower people to snack right
- DHL: Connecting people, improving lives
- Ford: To help build a better world, where every person is free to move and pursue their dreams.
- Nike: Move the world forward through the power of sport
- HSBC: Opening up a world of opportunity. We’re here to use our unique expertise, capabilities, breadth and perspectives to open up new kinds of opportunity for our customers. We’re bringing together the people, ideas, and capital that nurture progress and growth, helping to create a better world – for our customers, our people, our investors, our communities, and the planet we all share.
- De Beers Group: Make life brilliant
- Mckinsey and Company: To help create positive, enduring change in the world.
- Mastercard: Connecting Everyone to Priceless Possibilities
- Visa: To uplift everyone, everywhere by being the best way to pay and be paid
To sum up
Writing your company’s purpose statement is an investment in your organization’s future. It serves as a guiding light, attracting talent who share your vision and inspiring employees to bring their best selves to work every day.
A clear, concise statement that captures your “why” will resonate with your target audience, building trust and loyalty. Remember, your purpose statement is a living document. As your company grows and evolves, review and refine it to ensure it continues to reflect your core values and the positive impact you strive to make in the world.
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