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. Private Purpose Bond

    A type of municipal bond that is issued to finance a project ...
  5. Accounting Principles

    The rules and guidelines that companies must follow when reporting ...
  6. Financial Statement Analysis

    The process of reviewing and evaluating a company's financial ...
Related Articles
  1. Investing

    What are Financial Statements?

    Financial statements are a picture of a company’s financial health for a given period of time at a given point in time. The statements provide a collection of data about a company’s financial ...
  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

    What are Accounting Principles?

    The term accounting principles refers to rules and guidelines companies use to help them record their business and financial transactions.
  4. 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.
  5. Investing

    Why Real Estate Investors Need a Business Plan

    And how to write one that will serve as a road map to give you direction and motivate you to stay on track.
  6. 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.
  7. Investing

    Sneaky Subsidiary Tricks Can Cloud Financials

    Use consolidated financial statements to uncover a parent company's true performance.
  8. Small Business

    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.
  9. Small Business

    Understanding Consolidated Financial Statements

    Consolidated financial statements are the combined financial statements of a parent company and its subsidiaries.
  10. Small Business

    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. What is Apple's current mission statement and how does it differ from Steve Job's ...

    Find out how Apple's mission statement has changed from Steve Jobs' original mission statement. Jobs saw Apple products as ... Read Answer >>
  6. 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 >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center