What are company mission statements?

A company mission statement defines an organization’s purpose and objectives. It briefly explains what the organization does and why. For example, this statement can highlight the work performed by its employees, the products or services it offers, and the goals it aims to achieve through its work. It often helps enhance an organization’s reputation, such as providing details about how it impacts its community positively. Companies often align these statements with their organizational culture, helping provide direction and motivate their staff and stakeholders.

Why is a company mission statement important?

A company mission statement is important because it helps organizations differentiate themselves. It highlights the unique goals, values, and purpose an organization offers to its internal and external stakeholders. Companies often communicate their mission statements to motivate and inspire employees and build a unified culture. Employees then use these statements to understand how they can contribute toward achieving goals.

When a company incorporates values into its mission statement, it can provide expectations for employees’ behaviours. These values can also help attract new talent, as individuals who identify strongly with them might feel motivated to join and support the company. A mission statement can also help attract potential customers and supporters. Beyond describing what the company offers, highlighting organizational values can appeal to the public’s emotions. Customers who share similar values may want to show their support to the organization and help it achieve its goals.

How to write a company mission statement

You can use the following steps to draft an effective mission statement for your organization:

1. Mention the company’s offerings

Introduce your company by outlining the products or services it offers. State this information briefly and avoid irrelevant details. The purpose of mentioning the company’s offerings is to offer context to your audience that helps them understand what you do. For example, a company can say that it:

• Sells luxury clothing
• Provides SEO services
• Manufactures aeronautical parts
• Designs business software

2. Describe the company’s operations

Now that your audience understands what your organization does, you can define how it achieves that. Rather than providing a detailed description of steps, summarize your company’s core values or ethics. These concepts demonstrate the guiding principles your organization adheres to and how your employees perform their duties. Showcasing these values helps differentiate you from your competitors. For example, a company can describe its operations by saying it:

• Encourages creativity
• Promotes sustainability
• Provides accessible resources
• Ensures high-quality services

3. Define the company’s purpose

Next, you can describe why your organization exists or does what it does. Collaborate with company leaders to define the company’s ultimate purpose or intentions. Once you have discussed potential purposes with the company’s leadership team, you can seek feedback from employees and managers across the organization. These individuals can help you assess whether they believe the purpose aligns with their values or the work they do.

Companies’ purposes vary but often include goals related to how their offerings support communities or clients. For example:

• Sell luxury cars to make the driving experience more comfortable for customers
• Work with local farmers who grow fruits and vegetables to promote sustainable practices and healthier food options for the community
• Develop innovative technology that enables friends from around the world to connect with one another quickly

4. Communicate your mission statement

After finalizing your mission statement, seek opportunities to advertise it to your internal and external stakeholders. You can display this message on company websites, social media profiles, and marketing materials, and within internal handbooks. When leadership staff members understand the company’s mission, it can help them set team goals and develop strategies to achieve them. Making your mission statement accessible to the public can also help engage potential clients and supporters by building awareness of your brand identity and values.

Examples of company mission statements

When developing a company mission statement, looking at examples from other organizations can help leaders understand what details to include or avoid. Here are a few examples for inspiration:

Airline company

Speedy Airlines aims to make travelling more enjoyable by providing a positive and efficient booking experience while offering affordable fares.

Makeup company

Cassandra Beauty Tools wants to empower customers through our makeup products, encouraging them to use their creativity to create unique and colourful beauty looks that attract attention.

Community bank

Streamview Bank offers a range of personalized banking solutions to help individuals, families, and businesses fulfil their financial goals.

Company mission statement FAQs

Here are answers to several commonly asked questions about company mission statements:

How long should a mission statement be?

The length of a mission statement can vary, though typically is less than 100 words. Some companies craft a mission statement in one sentence, while others use up to four sentences. Drafting a concise statement allows the company to express its core goals and values to a wide audience while keeping them engaged.

Can companies change their mission statement?

Companies can update their mission statements to reflect changes related to their goals, purposes, or cultures. Their mission statement can also change according to industry trends or changes. For example, increasing demand for sustainability might encourage a company to align its mission and goals with sustainable practices. Reserve these updates for significant changes because changing the mission statement too often can make the brand identity or company culture less cohesive.

How do mission and vision statements differ?

A vision statement describes a company’s aspirations for the future, while a mission statement defines its purpose and the approach it takes to achieve it. The vision statement outlines long-term goals, and the mission statement focuses on current goals and actions. Some organizations combine these statements because achieving their mission statement’s short-term goals can lead to their ultimate vision.