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.

INVESTOPEDIA EXPLAINS '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. Holacracy

    A holacracy is a system of governance where members of a team ...
  6. Poison Put

    A takeover defense strategy in which the target company issues ...
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 >>
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. Fundamental Analysis

    Zappos.com & Holacracy, Will It Work?

    Zappos amounts to the most expansive corporate implementation of Holacracy. Why did they do it?
  4. Investing Basics

    Understanding Related-Party Transactions

    In business, a related-party transaction refers to a transaction where parties on both sides have a common interest or relationship.
  5. Economics

    Understanding Organizational Behavior

    Organizational behavior is the study of how humans interact in group environments.
  6. Investing Basics

    Explaining Tender Offers

    A tender offer is a broad public offer made by a person or company to purchase all or a portion of the shares of a publicly traded company.
  7. Fundamental Analysis

    Can Japan's Stewardship Code Turn Passive Funds Into Active Managers?

    Institutional investors in Japan have been criticized for being too cozy with corporates. Can a code force them to focus on the needs of beneficiaries?
  8. Stock Analysis

    Are These America's 5 Best CEOs?

    Do great leaders lead to great investment opportunities? Here's a few to consider.
  9. Investing Basics

    Explaining Non-Controlling Interest

    Technically, a non-controlling interest is any percentage of ownership that is less than 50% of a company’s voting equity.
  10. Professionals

    What Does Corporate Finance Do?

    Corporate finance is the subset of finance that involves how corporations use leverage to fund their operations and capital purchases.

You May Also Like

Hot Definitions
  1. Inbound Cash Flow

    Any currency that a company or individual receives through conducting a transaction with another party. Inbound cash flow ...
  2. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  3. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  4. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  5. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  6. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
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!