Enduring Purpose

AAA

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. Social Responsibility

    The idea that companies should embrace its social responsibilities ...
  3. Business Model

    The plan implemented by a company to generate revenue and make ...
  4. Credo

    A Latin word which means "a set of fundamental beliefs or a guiding ...
  5. Corporate Social Responsibility

    Corporate initiative to assess and take responsibility for the ...
  6. Corporate Culture

    The beliefs and behaviors that determine how a company's employees ...
Related Articles
  1. Active Trading Fundamentals

    Evaluating A Company's Management

    Financial statements don't tell you everything about a company's health. Investigate the management behind the numbers!
  2. Investing Basics

    Sinful Investing: Is It For You?

    Sin stocks may seen outright undesirable to some, but these "naughty" industries bring stable returns - even in hard times.
  3. Economics

    Explaining the Balanced Scorecard

    A balanced scorecard is a metric that measures a business’ performance.
  4. Investing Basics

    What is a Public Company?

    A public company has sold stock to the public through an initial public offering (IPO) and that stock is currently traded on a public stock exchange.
  5. Economics

    What Does Human Resources Do?

    Human resources (HR) is the department within a company that handles all matters relating to employment.
  6. Professionals

    8 Justifications For Sky-high CEO Salaries

    Why are CEO salaries so astronomically high? There may be more to the story than you think.
  7. Term

    What is a Feasibility Study?

    A feasibility study analyzes a company’s ability to complete a project.
  8. Stock Analysis

    Drugmaker Extraordinaire: How Eli Lilly Grows

    Drugs mean big profits in America. Here's how the country's oldest pharmaceutical firm keeps its toehold in the market.
  9. Professionals

    Are Stock Buybacks Always Good for Shareholders?

    Stock buyback programs aren't always done with the interests of shareholders in mind. It's important to try to understand the motivation behind such moves.
  10. Economics

    Understanding Management by Objectives

    Management by objectives is a process in which a manager and an employee agree on specific performance goals and then develop a plan to reach those goals.
RELATED FAQS
  1. Which key performance indicators (KPIs) indicate that a business is successfully ...

    There is no specific list of key performance indicators (KPIs) that can be universally applied to any business. The selection ... Read Full Answer >>
  2. How do modern companies assess business risk?

    Before a business can assess or mitigate business risk, it must first identify probable or likely risks to its bottom line. ... Read Full Answer >>
  3. Why has emphasis on corporate governance grown in the 21st century?

    Corporate governance refers to operational practices, management protocols, and other governing rules or principles by which ... Read Full Answer >>
  4. What impact did the Sarbanes-Oxley Act have on corporate governance in the United ...

    After a prolonged period of corporate scandals involving large public companies from 2000 to 2002, the Sarbanes-Oxley Act ... Read Full Answer >>
  5. Why should investors research the C-suite executives of a company?

    C-suite executives are essential for creating and enacting overall firm strategy and are therefore an important aspect of ... Read Full Answer >>
  6. What is the difference between a direct and an indirect distribution channel?

    A direct distribution channel is organized and managed by the firm itself. An indirect distribution channel relies on intermediaries ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
  2. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
  3. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market ...
  4. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the Philippines and Thailand. Tiger cub economy indicates that ...
  5. Gorilla

    A company that dominates an industry without having a complete monopoly. A gorilla firm has large control of the pricing ...
  6. Elephants

    Slang for large institutions that have the funds to make high volumes trades. Due to the large volumes of stock that elephants ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!