Enduring Purpose

DEFINITION of 'Enduring Purpose'

A public statement regarding a company's core principles, defining values, as well as its short- and long-term goals. An enduring purpose is similar to a mission statement and serves to provide a guide as to the company's past and present direction. An enduring purpose can encompass both financial and non-financial goals.

BREAKING DOWN 'Enduring Purpose'

A company's enduring purpose defines the business and attempts to describe its vision and core values. It is considered the guiding principle that all employees are supposed to follow. An enduring purpose can be very important to those wishing to invest in companies that are in sync with their own values. For example, the green movement has even spawned its own index. Recently, Standard & Poor's introduced a new "carbon-efficient index," featuring leading companies in emerging markets that are ecologically conscious.

RELATED TERMS
  1. Mission Statement

    A short sentence or paragraph used by a company to explain, in ...
  2. Public Purpose Bond

    This type of bond is used by municipalities to finance public ...
  3. Nonfinancial Asset

    An asset with a physical value such as real estate, equipment, ...
  4. Accounting Principles

    The rules and guidelines that companies must follow when reporting ...
  5. Private Purpose Bond

    A type of municipal bond that is issued to finance a project ...
  6. Sterling Ratio

    A ratio used mainly in the context of hedge funds. This risk-reward ...
Related Articles
  1. Entrepreneurship & Small Business

    Implementing A Small Business Social Media Strategy: Define Your Goals

    The first step in creating a social media strategy for your small business is to define your goals.
  2. Investing

    12 Things You Need To Know About Financial Statements

    Discover how to keep score of companies to increase your chances of choosing a winner.
  3. Investing

    Explaining Financial Statement Analysis

    Financial statement analysis is the process of reviewing a company’s statements to gain an understanding of its financial health.
  4. Investing

    Why Financial Statements Are Harder to Read Than Ever Before

    Understand four major reasons that financial statements published in 2016 are more complicated and difficult to read than they were in the past.
  5. Investing

    Sneaky Subsidiary Tricks Can Cloud Financials

    Use consolidated financial statements to uncover a parent company's true performance.
  6. Investing

    How Special Purpose Entities Help Fight Risk

    A special purpose entity, sometimes called a special purpose vehicle, is a legal entity created for one very limited, particular task. Typically, SPEs are subsidiaries of a larger corporation.
  7. Investing

    GAAP

    Learn more about the generally accepted accounting principles, standards and procedures that companies use to compile their financial statements.
  8. Investing

    Understanding Consolidated Financial Statements

    Consolidated financial statements are the combined financial statements of a parent company and its subsidiaries.
  9. ETFs & Mutual Funds

    Define Your Investment Goals & Objectives

    If you build a house without a plan, what sort of results would you expect? Investing isn’t any different. Without goals – and a well-thought-out plan for meeting those goals – ...
  10. Investing

    What are Core Competencies?

    Core competencies are the essence of what a company does well. A business uses its core competencies to make and develop products, goods and services according to its company mission. Core competencies ...
RELATED FAQS
  1. Which of the following would endure the most negative impact based on rising inflation ...

    The correct answer is a). Bonds show a far greater degree of vulnerability during inflationary times than do the other choices, ... Read Answer >>
  2. What's the difference between an income statement and a balance sheet approach?

    Understand more about the principle purposes and primary differences between a company's income statement and its balance ... Read Answer >>
  3. How should a change in accounting principle be recorded and reported?

    Learn about changes in accounting principle and why businesses make them, as well as the reporting and recording requirements ... Read Answer >>
  4. How do you find a company's P&L statement?

    Learn how to find a company's profit and loss statement, along with the other financial statements that companies regularly ... Read Answer >>
  5. Who sets the guidelines for accounting principles?

    Understand the generally accepted accounting principles and why they were put in place. Learn what entity sets the guidelines ... Read Answer >>
  6. How has Google's operations strayed from its original mission statement?

    Learn about Google's current mission statement and decide if Google is practicing what it preaches. Read Answer >>
Hot Definitions
  1. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  2. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  3. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  4. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  5. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
  6. Real Rate Of Return

    The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other ...
Trading Center