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How to Write a Purpose Statement That Serves Its Purpose (With 10 Examples)

If you had 5 minutes – or better yet, 5 seconds, could you describe WHY your organization exists? Would your colleagues describe it in the same way? And more importantly, would they FEEL a strong connection to the company's purpose?

Companies with a clear business purpose statement, and that use their purpose statement to connect with employees, customers, and key stakeholders at a deeper level, have an edge.

Why Company Purpose Matters Even More Today

It’s not a new concept: we tend to feel a bit better going to work or buying a product or service when we know there’s a greater reason for being behind it. It’s often a deciding factor between choosing one brand or company over another. What is new, though, is that the world we live and work in today calls for even more of a spotlight on purpose.

According to a 2021 McKinsey study , nearly 70% of employees are reflecting on purpose because of the pandemic. And, based on a PwC survey , 83% of employees rated “meaning in day-to-day work” as important to them. This has a downstream impact on hiring, morale, retention, and performance.

Your purpose statement is the foundation for how you can attract and retain talent, differentiate your culture, accelerate performance in a competitive, crowded marketplace, and re-energize employees who may be fatigued, apathetic, or skeptical.

The same McKinsey study found that employees who say that they live their purpose at work are:

• 6.5 times more likely to report higher resilience,
• 4 times more likely to report better health,
• 6 times more likely to want to stay at the company, and
• 1.5 times more likely to go above and beyond to contribute to the company (which is the employee engagement outcome many leaders and teams try to achieve).

For these reasons and more, our team believes that every organization should have a purpose statement and should know how to use it to tell your story on the inside and out for business impact so employees, customers, investors, shareholders, potential employees, and customers, and your many other stakeholders and partners see that they have a place in your company’s purpose.

What the Purpose Statement Is

A company purpose statement is its reason for being. It should answer these questions: Why do we exist beyond making money? What would the world lose if we didn’t exist? It goes beyond who you are and what you do. It’s your why and the impact your organization has on others.

Here are six characteristics of great purpose statements:

• Articulate the movement they’re ultimately championing and/or why the company is on the journey they are
• Are grand and aspirational while also believable
• Are differentiated so when viewed together with the mission, vision, and values of your company they are unique to your organization
• Are specific and create clarity, so they mean something to your company
• Are memorable and repeatable
• Have a tone and content that reflects the culture of the organization and fits them like a glove

Done right, company purpose statements are an important aspect of decision-making inside an organization so that it’s consistent with the company’s purpose.

10 Company Purpose Statement Examples

Here are 10 purpose statement examples across a variety of industries with a few thoughts on what makes them strong:

• AT&T: We create connection. This is both aspirational and ties to the company and its products and services over the years – which makes it believable. While it isn’t specific to a product, it creates clarity about what the company sees as its ultimate reason for being – to create connection. This is what we mean by “fitting like a glove”.
• Charles Schwab Corporation: To champion every client's goals with passion and integrity. It speaks to the larger reason for being a company in the financial services industry. It is specific to the movement it focuses on (championing clients’ goals) and it reflects the culture of the organization (passion and integrity). It’s both aspirational and believable.
• CVS Health: Bringing our heart to every moment of your health™ This captures the essence of the company’s focus around people’s lives and health. It’s memorable and repeatable and is used as a tagline. It ties in its brand as well (the heart), which also speaks to company culture and its intended service experience.
• Kellogg’s: Creating better days and a place at the table for everyone through our trusted food brands. You see the statement, company name, think of the products, and know that they go hand in hand. It speaks to the movement the company is championing (better days and a place at the table for everyone). It is grand and aspirational while also being believable. It’s specific and speaks to its industry (trusted food brand).
• Ford Motor Company: To help build a better world, where every person is free to move and pursue their dreams. This is grand and aspirational as well as entirely believable. If you run the screen of “what would be at risk if the company didn’t exist?” the mind goes to images of people not being able to get to their jobs, school, to travel, and be where they want to be. In reading this purpose statement, you learn quite a bit about the company and what it stands for (build a better world, be free to move, help people pursue their dreams).
• Virgin Atlantic: Everyone can take on the world. It speaks to the culture of the company, is easy to remember, and is memorable. It’s aspirational and yet feels believable in the sense that its products and services actually help people “take on the world”. There’s a swagger to this phrase that exudes confidence, feels empowering, and feels right at home with the brand. When you see this purpose statement and think about the company and what it’s all about, you can see (and almost feel) how they belong together.
• McDonald’s: To feed and foster communities. It’s memorable, repeatable, and naturally ties to the business it is in. It also signals in a believable way that its aspirations go beyond food and are also about building communities.
• NIKE: To move the world forward through the power of sport. It’s clear, easy to remember, and specific to the business. You know the industry right away which helps differentiate them (power of sport). It’s aspirational (moving the world forward) and also believable. When you read the purpose statement, you can visualize the essence of the company and its products that help people move.
• Novartis: To reimagine medicine to improve and extend people's lives. It’s specific to the industry (healthcare) and speaks to why the company exists (reimagine medicine) and its higher level reason for being (improve and extend people’s lives). It’s clear and easy to remember.
• Kroger: To feed the human spirit™ This speaks to its industry and focus as a business (food). It’s easy to remember and repeat, reading like a slogan. It’s also aspirational in that it speaks to feeding more than the “person” but also the “human spirit”.

How a Purpose Statement Fits Into Your Company’s Mission, Vision, and Values

Purpose is one of several elements of your organization’s DNA that make your company uniquely you. Together, these define who you are as a company and what you stand for. They serve as your North Star for your business – what you do, why you do it, and how you do it.

• Purpose statement: An organization’s reason for being (beyond making a profit) and how the products/services benefit people. It answers the questions for your customers and employees: why do we exist and what would the world lose if we didn’t exist? It has an external focus and remains constant over time. Purpose statements could be centered on society, customers, or community. All the other elements of the DNA tie back to the purpose statement.
• Mission statement: The mission states what the company will do to realize its business purpose. It comes from the perspective of inside the organization. The key elements to the mission statement are that it states the type of business/work you do today, is forward-looking, and speaks to your capabilities. It focuses on what you do and how you do it. A mission statement guides decision-making and informs business strategy, and it could evolve over time while your organization’s purpose remains the same.
• Vision statement: Paints a picture of what our company’s future looks like if we’re successful. It answers the question. It’s a statement of where the organization is heading. It’s future-oriented and aspirational. It’s also connected to the hearts and minds of people and captures hopes and dreams.
• Values and behaviors: These make up the desired ways of work (or culture) that employees need to live to advance the purpose, mission, and vision. Values describe the principles that are expected of employees, and behaviors are the tangible, observable, measurable elements that can be implemented. Both values and behaviors are intended to help employees know what’s expected of them and to guide how they show up at work. They define the company’s culture and personality, and answer the question: What does our company look like in action? Values and behaviors can happen in pockets but are aspirational for others.

Put another way…

• The purpose GUIDES you.
• The mission FOCUSES you.
• The vision INSPIRES you.
• The values ALIGN you.
• The behaviors MEASURE you.

These elements of a company’s DNA form a strategic framework that helps employees know what matters most for the organization, and how day-to-day business plans and tasks fit into the larger whole and greater good. It’s also an important way for employees to see how their sense of purpose fits (or doesn’t) with the place they work.

It’s like a stack of jigsaw puzzle pieces that fit together to form a cohesive picture for everyone to see and share in common.

How to Know When You Need to Update Your Purpose Statement

Because the purpose statement guides your company, it’s important to regularly calibrate between your purpose statement and changing dynamics to ensure they stay connected in all the right ways. Here are some defining moments in a company that signal when it’s time to review your purpose statement and determine whether it’s time to update it:

• New CEO / leadership team: With new leadership comes new perspective on the business. It’s a time when leaders are evaluating the business, weighing options, and setting new directions for the company that will make an impact. It’s important to also evaluate the purpose statement of the company and line it up.
• Merger and/or acquisition: This is a major change to your company that warrants a calibration to your purpose statement (and mission, vision, and values) as new entities, teams, products, and services are at play. It’s a good time to evaluate whether the purpose statement remains true to the company in its new state. At a minimum, it’s critical to drive awareness of your company’s purpose with employees, customers, and other stakeholders so they fully understand and appreciate it.
• New strategy: Purpose statements and company strategy must go hand in hand so if your company has a new strategy (or is working on a new strategy ), check that the purpose statement is still consistent and relevant.
• Significant transformation: Congruency between the company’s purpose and actions is essential. When big changes are happening in a company it’s key to calibrate so the transformation efforts continue to sync and support the company’s purpose and strategic direction. And, if the transformation is changing direction for a company, then the purpose statement (and mission, vision, and values) may need to evolve.
• Recruitment, retention issues, or other people-related issues: More than ever, employees want to work for companies that share a common sense of purpose and values. If your organization is struggling to recruit and retain employees, check your purpose statement and see if it’s as relevant and compelling as it needs to be.
• Heightened competition: Employees, customers, and investors look for differentiation and companies with an edge. Your purpose statement says a lot about your company – who you are, what you stand for, why you exist, and what’s at risk if you’re not there. When competition is fierce, it’s time to look at your purpose statement to see if it defines you accurately, speaks to your aspirations, and helps you stand out.
• Annual strategic planning: Make it a habit to check your purpose statement (along with your vision, mission, and values) annually in the context of your company’s strategic planning, so the most important elements of your organization guide decision-making for key priorities and plans for the year. It’s the ultimate litmus test to see that priorities and plans support your company’s purpose statement (and overall DNA). And, if they don’t line up, to have strategic conversations about what’s changing and why and whether it warrants updating your purpose statement.

How to Write a Purpose Statement

Apply these principles as you consider your approach to developing your company’s purpose statement:

• Make it a strategic business exercise – that sets the direction for your vision, mission, values, and strategy and is the foundation for how people know you as a company. Keep it from being a word-smithing exercise.
• Be intentional – Dig deep to understand the origin of the company and follow that thread through to who you are today, and why you will continue to exist in the future.
• Let leaders set the tone and involve others with purpose – The purpose statement should be shaped by the leadership team and key influencers in the company and then vetted and fine-tuned with employees so that they have shared meaning and ownership. This is bigger than any one person or team writing the purpose statement.
• Iterate – Work a smart process and let the process work so as people’s thinking evolves, the purpose statement captures it.
• Connect to your culture – Let the essence of your culture come through in how you describe the essence of your company.
• Go beyond the ordinary – If you lined up your purpose statement with others in your industry (or even other industries), check that it stands out from the rest.
• Have a plan – This is how you’re going to create the purpose statement and what you’ll do to introduce it to your key stakeholders inside and outside the company.

Steps to Writing Your Purpose Statement

Whether creating a purpose statement from scratch or refreshing an existing one, follow these steps to guide you. How you approach writing your purpose statement may vary depending on where you are as an organization, your starting point, and your culture.

• Intake Compare your current purpose statement with how your organization shows up in internal and external artifacts to see what’s consistent and what’s not. Ask: What’s similar and what’s different that we should consider for the new purpose statement?
• Develop Your Roadmap Determine your plan of action to get to a purpose statement that your organization is fully aligned around. Ask: What are the key steps and milestones to drive toward?
• Identify Your Stakeholders and Engagement Plan Map your plan for who and how you’ll engage people from across your organization in the process. Consider who your champions will be, who will be hands-on in co-creation, and who you want to involve along the way to preview or test concepts. If there are many stakeholders, consider a working group or committee of representatives to advance the work in a more manageable way. And then involve others to preview and test the committee’s work. Ask: When the purpose statement is drafted, who do we need to have on board so they support it and what’s the best way to get those people involved?
• Conduct Stakeholder Listening Based on your engagement plan, hold listening sessions with key stakeholders to understand their thoughts on the business and how that translates to the company’s purpose. Summarize what you’re hearing. Ask: What are the common themes and where are there different points of view that warrant more conversation and alignment?
• Co-create the Purpose Statement Gather all the key stakeholders to co-create the purpose statement together in a hands-on, interactive way. Have a facilitator lead the session and leverage all the work done in Steps 1 through 4. You can walk out with a solid draft of the purpose statement that the group is aligned around and that’s ready to test drive with others.  Ask: Do we have a purpose statement that we all understand, believe in, and can champion?
• Test the Purpose Statement Involve other stakeholders for input and buy-in. Get the draft purpose statement in front of employee groups and see what they say. You can also have key groups of leaders and working group members test drive the purpose statement with their teams. Ask: What resonates, where is further clarification needed, and in what ways do we see this purpose statement being lived in the company?
• Discuss and Refine the Purpose Statement Use the learnings as fodder for discussion with your core working group and champions about what changes to make in the purpose statement and to inform your communications before you revise and finalize the purpose statement. Ask: What feedback warrants changes to the purpose statement? What concepts will require more communication to help people understand?

Key Learnings from Developing Purpose Statements

We’ve worked with many clients to create their purpose statement (and their mission, vision, and values as well). Here are four things to keep in mind:

• The process is as important as the statement – How you engage people and bring them along on the journey is just as important as what the final words are of your company’s purpose statement. You need a purpose statement that will guide the company – and its people – for years to come and that requires involvement from people.
• Involve skeptics – Some may think of this work as a word-smithing activity or that culminates in posters that no one ever reads. To those people, we say … let’s get you involved in this process so we can make sure that doesn’t happen. Build a plan that is skeptic-proof. I’ve heard from many leaders as they go through this process that they were skeptical about this work at first and then became the biggest advocates of the purpose statement they created and the process that was taken to build it.
• Avoid shortcuts that may cause shortcomings – On paper, a purpose statement is just a few words but getting a room full of people (let alone a whole company) to align around the meaning behind the words looks easier than it is. We believe in a “go slow to go fast” approach that by working a smart process you’ll get to a better outcome faster and that will have lasting power. Watch out for shortcuts that can cause shortcomings – for example, skipping listening or testing may save a few days, but you lose out on important insights and cut people out of being involved who could have become champions.
• Embrace input – It can be nerve-wracking to draft a purpose statement and then take it to pockets of the organization for input not knowing if it will be liked or overhauled. However, it’s better to bring people along on the journey and get input before things are finalized for prime time. In addition, when people are engaged earlier, they tend to be more positive. We worked with a client to preview their company’s DNA (including the purpose statement) with more than 1,000 people. The reception was extremely positive and where there was feedback, it was hugely helpful. Most importantly, when it came time to roll out the final content, people were on board and ready to champion it because they had been a part of the process.

You’ve Crafted Your Purpose Statement – Now What?

Having a clear purpose statement is a big step to celebrate. It’s also just the beginning as you think about how to embed it into the organization. Consider these next steps:

• Define your terms – A purpose statement is just a few words, but every single word matters and needs to mean something. Have specific definitions for each word so people in your organization know what it means and use the terms consistently.
• Align the rest of the strategy to the purpose statement – The purpose statement anchors many other components of your company’s strategic framework so everything needs to ladder back to it, including the mission, vision, values, culture, business plans and priorities, and KPIs and metrics. Identify where there are connections to make and/or disconnects to address. Create a strategic framework that shows visually how all the pieces connect together.
• Plan the rollout and activation – Have a plan for how to communicate the company’s purpose across the organization. Think of it in terms of launching, activating, and sustaining so you can embed the purpose in how people think and work. Make it part of the everyday storytelling inside and outside the company. This takes time, consistency across voices and channels, and purposeful communication.

Case Study: A Purpose-Driven Function

We worked recently with a large function in a global organization through these steps. The function originally needed help to roll out and embed their new strategy to its 7,500 employees, but early on it became clear that before employees could align around a strategy, they first needed to come together with one shared purpose. Working these steps led to many defining moments, including:

• During discovery, an employee survey led to useful insights that guided the leadership team’s focus and helped them address some opportunities, and it served as a follow-up loop for communicating the purpose and strategy.
• Leader listening uncovered a wide range of perspectives on the organization’s purpose and path forward. This was critical to uncover early on, so the work to follow could bridge the gaps and bring the leaders together as one aligned team.
• The process of co-creating the purpose statement worked. It got some grumbles at first. “Really, we need to break up into groups and do flip chart exercises?” Yes... and did they ever rise to the occasion. In a few short hours, the group co-created a purpose statement and started using it in the same meeting to make some critical business decisions. It was an instant payoff and the leadership team knew it. They later described that as a defining moment for their leadership team and their company.
• Leaders played an active role in talking about the purpose statement with their teams and ensuring a common understanding of the meaning of each element of the purpose.
• Next-level leaders (directors and above in this case) became immersed in their purpose, mission, vision, values, and strategy at an offsite meeting where every moment of the day was designed purposefully to bring the company’s DNA to life in ways that made it real, relevant, and actionable for them, so they could take the same experience and energy back to their teams to get them grounded in it.
• The purpose statement took on a life of its own as leaders enrolled their teams in it. They held rallies, decorated their sites with signage, gave employees swag, made it part of everyday conversation, and even got teams writing songs about the purpose statement. It took hold because people got inspired and excited about it.

To learn how we helped another organization define its new DNA following a merger of equals, check out this case study .

Final Thoughts

Be purposeful when creating your company’s purpose statement so that it’s strategic, you have organizational buy-in, and it’s tied to business goals for the best outcome. Follow these steps so that your organization has a purpose statement that effortlessly describes why you exist and guides your company for the future in a way that sets you apart, and that employees, customers, and other key stakeholders know and believe in.  

As you reflect on your company’s purpose statement, would it benefit from being updated?

—Kate Bushnell

This quick guide covers a methodology you can use to co-create your purpose statement and maximize leader and employee buy-in. Download Maximizing Strategy Development & Rollout with Top Leaders   today!

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9 Examples: How to Write a Purpose Statement

• Key Elements of a Purpose Statement Part 1
• How to Write a Purpose Statement Step-by-Step Part 2
• Identifying Your Goals Part 3
• Defining Your Audience Part 4
• Outlining Your Methods Part 5
• Stating the Expected Outcomes Part 6
• Purpose Statement Example for a Research Paper Part 7
• Purpose Statement Example For Personal Goals Part 8
• Purpose Statement Example For Business Objectives Part 9
• Purpose Statement Example For an Essay Part 10
• Purpose Statement Example For a Proposal Part 11
• Purpose Statement Example For a Report Part 12
• Purpose Statement Example For a Project Part 13
• Purpose Statement Templates Part 14

A purpose statement is a vital component of any project, as it sets the tone for the entire piece of work. It tells the reader what the project is about, why it’s important, and what the writer hopes to achieve.

Part 1 Key Elements of a Purpose Statement

When writing a purpose statement, there are several key elements that you should keep in mind. These elements will help you to create a clear, concise, and effective statement that accurately reflects your goals and objectives.

1. The Problem or Opportunity

The first element of a purpose statement is the problem or opportunity that you are addressing. This should be a clear and specific description of the issue that you are trying to solve or the opportunity that you are pursuing.

2. The Target Audience

The second element is the target audience for your purpose statement. This should be a clear and specific description of the group of people who will benefit from your work.

3. The Solution

The third element is the solution that you are proposing. This should be a clear and specific description of the action that you will take to address the problem or pursue the opportunity.

4. The Benefits

The fourth element is the benefits that your solution will provide. This should be a clear and specific description of the positive outcomes that your work will achieve.

5. The Action Plan

The fifth element is the action plan that you will follow to implement your solution. This should be a clear and specific description of the steps that you will take to achieve your goals.

Part 2 How to Write a Purpose Statement Step-by-Step

Writing a purpose statement is an essential part of any research project. It helps to clarify the purpose of your study and provides direction for your research. Here are some steps to follow when writing a purpose statement:

• Start with a clear research question: The first step in writing a purpose statement is to have a clear research question. This question should be specific and focused on the topic you want to research.
• Identify the scope of your study: Once you have a clear research question, you need to identify the scope of your study. This involves determining what you will and will not include in your research.
• Define your research objectives: Your research objectives should be specific, measurable, achievable, relevant, and time-bound. They should also be aligned with your research question and the scope of your study.
• Determine your research design: Your research design will depend on the nature of your research question and the scope of your study. You may choose to use a qualitative, quantitative, or mixed-methods approach.
• Write your purpose statement: Your purpose statement should be a clear and concise statement that summarizes the purpose of your study. It should include your research question, the scope of your study, your research objectives, and your research design.

Research question: What are the effects of social media on teenage mental health?

Scope of study: This study will focus on teenagers aged 13-18 in the United States.

Research objectives: To determine the prevalence of social media use among teenagers, to identify the types of social media used by teenagers, to explore the relationship between social media use and mental health, and to provide recommendations for parents, educators, and mental health professionals.

Research design: This study will use a mixed-methods approach, including a survey and interviews with teenagers and mental health professionals.

Purpose statement: The purpose of this study is to examine the effects of social media on teenage mental health among teenagers aged 13-18 in the United States. The study will use a mixed-methods approach, including a survey and interviews with teenagers and mental health professionals. The research objectives are to determine the prevalence of social media use among teenagers, to identify the types of social media used by teenagers, to explore the relationship between social media use and mental health, and to provide recommendations for parents, educators, and mental health professionals.

Part 3 Section 1: Identifying Your Goals

Before you start writing your purpose statement, it’s important to identify your goals. To do this, ask yourself the following questions:

• What do I want to achieve?
• What problem do I want to solve?
• What impact do I want to make?

Once you have a clear idea of your goals, you can start crafting your purpose statement. Your purpose statement should be a clear and concise statement that outlines the purpose of your work.

For example, if you’re writing a purpose statement for a business, your statement might look something like this:

“Our purpose is to provide high-quality products and services that improve the lives of our customers and contribute to the growth and success of our company.”

If you’re writing a purpose statement for a non-profit organization, your statement might look something like this:

“Our purpose is to improve the lives of underserved communities by providing access to education, healthcare, and other essential services.”

Remember, your purpose statement should be specific, measurable, and achievable. It should also be aligned with your values and goals, and it should inspire and motivate you to take action.

Part 4 Section 2: Defining Your Audience

Once you have established the purpose of your statement, it’s important to consider who your audience is. The audience for your purpose statement will depend on the context in which it will be used. For example, if you’re writing a purpose statement for a research paper, your audience will likely be your professor or academic peers. If you’re writing a purpose statement for a business proposal, your audience may be potential investors or clients.

Defining your audience is important because it will help you tailor your purpose statement to the specific needs and interests of your readers. You want to make sure that your statement is clear, concise, and relevant to your audience.

To define your audience, consider the following questions:

• Who will be reading your purpose statement?
• What is their level of knowledge or expertise on the topic?
• What are their needs and interests?
• What do they hope to gain from reading your purpose statement?

Once you have a clear understanding of your audience, you can begin to craft your purpose statement with their needs and interests in mind. This will help ensure that your statement is effective in communicating your goals and objectives to your readers.

For example, if you’re writing a purpose statement for a research paper on the effects of climate change on agriculture, your audience may be fellow researchers in the field of environmental science. In this case, you would want to make sure that your purpose statement is written in a way that is clear and concise, using technical language that is familiar to your audience.

Or, if you’re writing a purpose statement for a business proposal to potential investors, your audience may be less familiar with the technical aspects of your project. In this case, you would want to make sure that your purpose statement is written in a way that is easy to understand, using clear and concise language that highlights the benefits of your proposal.

The key to defining your audience is to put yourself in their shoes and consider what they need and want from your purpose statement.

Part 5 Section 3: Outlining Your Methods

After you have identified the purpose of your statement, it is time to outline your methods. This section should describe how you plan to achieve your goal and the steps you will take to get there. Here are a few tips to help you outline your methods effectively:

• Start with a general overview: Begin by providing a brief overview of the methods you plan to use. This will give your readers a sense of what to expect in the following paragraphs.
• Break down your methods: Break your methods down into smaller, more manageable steps. This will make it easier for you to stay organized and for your readers to follow along.
• Use bullet points: Bullet points can help you organize your ideas and make your methods easier to read. Use them to list the steps you will take to achieve your goal.
• Be specific: Make sure you are specific about the methods you plan to use. This will help your readers understand exactly what you are doing and why.
• Provide examples: Use examples to illustrate your methods. This will make it easier for your readers to understand what you are trying to accomplish.

Part 6 Section 4: Stating the Expected Outcomes

After defining the problem and the purpose of your research, it’s time to state the expected outcomes. This is where you describe what you hope to achieve by conducting your research. The expected outcomes should be specific and measurable, so you can determine if you have achieved your goals.

It’s important to be realistic when stating your expected outcomes. Don’t make exaggerated or false claims, and don’t promise something that you can’t deliver. Your expected outcomes should be based on your research question and the purpose of your study.

Here are some examples of expected outcomes:

• To identify the factors that contribute to employee turnover in the company.
• To develop a new marketing strategy that will increase sales by 20% within the next year.
• To evaluate the effectiveness of a new training program for improving customer service.
• To determine the impact of social media on consumer behavior.

When stating your expected outcomes, make sure they align with your research question and purpose statement. This will help you stay focused on your goals and ensure that your research is relevant and meaningful.

In addition to stating your expected outcomes, you should also describe how you will measure them. This could involve collecting data through surveys, interviews, or experiments, or analyzing existing data from sources such as government reports or industry publications.

Part 7 Purpose Statement Example for a Research Paper

If you are writing a research paper, your purpose statement should clearly state the objective of your study. Here is an example of a purpose statement for a research paper:

The purpose of this study is to investigate the effects of social media on the mental health of teenagers in the United States.

This purpose statement clearly states the objective of the study and provides a specific focus for the research.

Part 8 Purpose Statement Example For Personal Goals

When writing a purpose statement for your personal goals, it’s important to clearly define what you want to achieve and why. Here’s a template that can help you get started:

“I want to [goal] so that [reason]. I will achieve this by [action].”

Example: “I want to lose 10 pounds so that I can feel more confident in my body. I will achieve this by going to the gym three times a week and cutting out sugary snacks.”

Remember to be specific and realistic when setting your goals and actions, and to regularly review and adjust your purpose statement as needed.

Part 9 Purpose Statement Example For Business Objectives

If you’re writing a purpose statement for a business objective, this template can help you get started:

[Objective] [Action verb] [Target audience] [Outcome or benefit]

Here’s an example using this template:

Increase online sales by creating a more user-friendly website for millennial shoppers.

This purpose statement is clear and concise. It identifies the objective (increase online sales), the action verb (creating), the target audience (millennial shoppers), and the outcome or benefit (a more user-friendly website).

Part 10 Purpose Statement Example For an Essay

“The purpose of this essay is to examine the causes and consequences of climate change, with a focus on the role of human activities, and to propose solutions that can mitigate its impact on the environment and future generations.”

This purpose statement clearly states the subject of the essay (climate change), what aspects will be explored (causes, consequences, human activities), and the intended outcome (proposing solutions). It provides a clear roadmap for the reader and sets the direction for the essay.

Part 11 Purpose Statement Example For a Proposal

“The purpose of this proposal is to secure funding and support for the establishment of a community garden in [Location], aimed at promoting sustainable urban agriculture, fostering community engagement, and improving local access to fresh, healthy produce.”

Why this purpose statement is effective:

• The subject of the proposal is clear: the establishment of a community garden.
• The specific goals of the project are outlined: promoting sustainable urban agriculture, fostering community engagement, and improving local access to fresh produce.
• The overall objective of the proposal is evident: securing funding and support.

Part 12 Purpose Statement Example For a Report

“The purpose of this report is to analyze current market trends in the electric vehicle (EV) industry, assess consumer preferences and buying behaviors, and provide strategic recommendations to guide [Company Name] in entering this growing market segment.”

• The subject of the report is provided: market trends in the electric vehicle industry.
• The specific goals of the report are analysis of market trends, assessment of consumer preferences, and strategic recommendations.
• The overall objective of the report is clear: providing guidance for the company’s entry into the EV market.

Part 13 Purpose Statement Example For a Project

“The purpose of this project is to design and implement a new employee wellness program that promotes physical and mental wellbeing in the workplace.”

This purpose statement clearly outlines the objective of the project, which is to create a new employee wellness program. The program is designed to promote physical and mental wellbeing in the workplace, which is a key concern for many employers. By implementing this program, the company aims to improve employee health, reduce absenteeism, and increase productivity. The purpose statement is concise and specific, providing a clear direction for the project team to follow. It highlights the importance of the project and its potential benefits for the company and its employees.

Part 14 Purpose Statement Templates

When writing a purpose statement, it can be helpful to use a template to ensure that you cover all the necessary components:

Template 1: To [action] [target audience] in order to [outcome]

This template is a straightforward way to outline your purpose statement. Simply fill in the blanks with the appropriate information:

• The purpose of […] is
• To [action]: What action do you want to take?
• [Target audience]: Who is your target audience?
• In order to [outcome]: What outcome do you hope to achieve?

For example:

• The purpose of our marketing campaign is to increase brand awareness among young adults in urban areas, in order to drive sales and revenue growth.
• The purpose of our employee training program is to improve customer service skills among our frontline staff, in order to enhance customer satisfaction and loyalty.
• The purpose of our new product launch is to expand our market share in the healthcare industry, by offering a unique solution to the needs of elderly patients with chronic conditions.

Template 2: This [project/product] is designed to [action] [target audience] by [method] in order to [outcome].

This template is useful for purpose statements that involve a specific project or product. Fill in the blanks with the appropriate information:

• This [project/product]: What is your project or product?
• Is designed to [action]: What action do you want to take?
• By [method]: What method will you use to achieve your goal?
• This app is designed to provide personalized nutrition advice to athletes by analyzing their training data in order to optimize performance.

Frequently Asked Questions

What are the key elements of a purpose statement.

A purpose statement should clearly communicate the main goal or objective of your writing. It should be concise and specific, providing a clear direction for your work. The key elements of a purpose statement include the topic or subject matter, the intended audience, and the overall goal or objective of your writing.

How can a purpose statement benefit your writing?

A purpose statement can help you stay focused and on track when writing. It can also help you to avoid going off-topic or getting bogged down in unnecessary details. By clearly identifying the main goal or objective of your writing, a purpose statement can help you to stay organized and ensure that your writing is effective and impactful.

What are some common mistakes to avoid when writing a purpose statement?

One common mistake is being too vague or general in your purpose statement. Another mistake is making your purpose statement too long or complex, which can make it difficult to understand. Additionally, it’s important to avoid including unnecessary information or details that are not directly relevant to your main goal or objective.

How can you tailor your purpose statement to your audience?

When writing a purpose statement, it’s important to consider your audience and their needs. You should tailor your purpose statement to your audience by using language and terminology that they will understand. You should also consider their level of knowledge or expertise on the subject matter and adjust your purpose statement accordingly.

What are some effective templates for writing a purpose statement?

There are many effective templates for writing a purpose statement, but one common approach is to use the following structure: “The purpose of this writing is to [insert goal or objective] for [insert audience] regarding [insert topic or subject matter].”

Can you provide examples of successful purpose statements?

• “The purpose of this report is to provide an analysis of the current market trends and make recommendations for future growth strategies for our company.”
• “The purpose of this essay is to explore the impact of social media on modern communication and its implications for society.”
• “The purpose of this proposal is to secure funding for a new community center that will provide educational and recreational opportunities for local residents.”
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How To Write a Company Purpose Statement (+ 21 Real Company Examples)

Profits are  great , but what’s your ‘Why’? A strong purpose statement becomes your company’s North Star, guiding employees & attracting talent. Learn how to write yours. 

What is a purpose statement? 

Company vs. personal purpose statements, personal purpose statements.

• A personal purpose statement is your internal compass
• More subjective and reflects the unique motivations and aspirations of a person. 
• Mainly written for yourself, explaining your life goals and motivations.

Company purpose statements

• A company purpose statement is the guiding principle of the entire organization. 
• Broader and consider the impact on a large scale, like solving environmental problems or promoting social justice. 
• Targeted at employees, customers, and investors to inspire and build trust with stakeholders.

Purpose statement vs. mission statement: The difference

The role of hr in developing a company purpose statement .

• Aligning employee and company motivations and aspirations: HR interacts with employees. Through staff surveys and meetings, they gather insights into their motivations and aspirations and how these align with the company’s potential purpose. 
• Aligning company culture and purpose: HR ensures that the purpose statement reflects the company’s values and how it resonates with the culture. 
• Promoting holistic insights across the organization: HR can organize discussions with staff from different ranks and departments, customers, partners, and other stakeholders to gain a holistic view of the company’s purpose.
• Communicating the organization’s purpose: HR plays a vital role in communicating the company’s purpose to the employees. This ensures that everyone understands how their work contributes to the company’s bigger purpose, fostering employee engagement .
• The purpose statement guides policy and initiative development: HR can use the company’s purpose to guide policies, programs, and initiatives. 
• Creating attractive talent acquisition strategies: A clear purpose statement can be a powerful tool in attracting talent who share the employer’s values and aspirations. HR can use the purpose statement when creating recruitment and employer branding strategies . 

How to write a purpose statement

Stakeholders, long-term goals, authenticity.

5 actionable steps for HR when crafting a purpose statement

1. build a team and collaborate, 2. research and analyze.

• What values do you believe are essential to our company?
• Which values do you think define our company culture the most?
• What do you think is the primary purpose of our organization?
• In what ways do you believe our company contributes to the wellbeing of our customers, communities, and stakeholders?
• How do you envision our company making a difference in the future?
• Where do you see our company in the next 5–10 years?
• What are your aspirations for the future of our organization?

HR tip You can also analyze industry trends and competitor purpose statements to inspire your own and consider how yours differs.

3. Crafting the purpose statement 

HR tip Aim for a short and clear company purpose statement. Ideally, it should be around 1–2 sentences that are easy to understand and remember.  Avoid jargon and complex sentences. 

4. Ask for feedback and finalize your purpose statement 

5. create a communication plan, sample company purpose statement, tips for writing a good purpose statement.

• Be inspirational: A compelling purpose statement should evoke positive emotions and inspire action. It should go beyond profit and appeal to employee’s motivations.
• Be specific and authentic: Avoid generic statements and clichés. Instead, articulate what makes your organization unique and why its purpose is meaningful.
• Be future-oriented: The purpose statement should convey a sense of vision and optimism about the organization’s future impact. It should inspire stakeholders to join in shaping a better tomorrow.
• Be actionable: A good purpose statement guides decision-making and behavior within the organization. It should serve as a compass, informing strategic priorities, operational decisions, and employee actions.
• Be inclusive: Ensure the purpose statement reflects all stakeholders’ diverse perspectives and interests. Consider the perspectives of all stakeholders, including employees, customers, partners, and communities. An inclusive purpose statement fosters a sense of belonging and alignment among diverse stakeholders.

21 company purpose statement examples 

• Intel : We create world-changing technology that improves the life of every person on the planet.
• Boston Consulting Group : Unlocking the potential of those who advance the world
• Novartis : Reimagine medicine to improve and extend people’s lives 
• Unilever : Make sustainable living commonplace 
• Walmart : We aim to build a better world — helping people live better and renew the planet while building thriving, resilient communities. For us, this means working to create opportunity, make a more sustainable future, advance diversity, equity, and inclusion, and bring communities closer together.
• Pfizer : Deliver breakthroughs that change patients’ lives. R&D is at the heart of fulfilling Pfizer’s purpose as we work to translate advanced science and technologies into the therapies that matter most.
• McDonald’s : Feed and foster communities
• Goldman Sachs : We aspire to be the world’s most exceptional financial institution, united by our shared values of partnership, client service, integrity, and excellence.
• Coca-Cola : To refresh the world and make a difference.
• Vodafone : To connect for a better future
• Sony : Fill the world with emotion through the power of creativity and technology 
• United Airlines : Connecting People. Uniting the World” drives our decision-making, supported by our core values – Safety, Caring, Dependability, and Efficiency. In action, that means doing the right thing for our planet, our passengers, and our people.
• Mondelez : We empower people to snack right
• DHL : Connecting people, improving lives 
• Ford : To help build a better world, where every person is free to move and pursue their dreams.
• Nike : Move the world forward through the power of sport
• HSBC : Opening up a world of opportunity. We’re here to use our unique expertise, capabilities, breadth and perspectives to open up new kinds of opportunity for our customers. We’re bringing together the people, ideas, and capital that nurture progress and growth, helping to create a better world – for our customers, our people, our investors, our communities, and the planet we all share.
• De Beers Group : Make life brilliant 
• Mckinsey and Company : To help create positive, enduring change in the world.
• Mastercard : Connecting Everyone to Priceless Possibilities
• Visa : To uplift everyone, everywhere by being the best way to pay and be paid

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How to Write a Purpose Statement (+31 Examples)

A good purpose statement is at the heart of every strong brand.

Purpose gets right to the heart of why you do what you do as a business. It speaks to profound reasons why employees and customers want to be associated with your brand.

That’s why defining your company’s purpose in a clear, concise purpose statement is key to creating a more impactful brand .

But what is a purpose statement? Why is it important? And how is a purpose statement different from a mission statement?

If you’re looking for answers to questions, or want to learn how to write a purpose statement for your company, this post has everything you need.

We’ll unpack a purpose statement definition, look at purpose statement examples in the world’s most successful brands, and show you how to define a powerful purpose statement for your own brand.

What is a Purpose Statement?

The difference between a purpose statement and a mission statement, the benefits of a strong purpose statement, 5 qualities of a strong purpose statement, how to write a purpose statement, 31 purpose statement examples, the takeaway.

A purpose statement is a short sentence that describes the reason a company exists beyond making money.

Your purpose is the answer to the most fundamental question you face as organization: “Why?”

Why does your business exist? What drives you to get out of bed in the morning to go to work? Why do you work long hours or make sacrifices to keep your business moving forward?

Purpose is the primary driver that motivates your team, especially during difficult or challenging times. But purpose is equally important for customers, as well. Research shows that today’s customers want to buy from and associate themselves with purpose-driven brands.

Also known as a core purpose, business purpose, or company purpose, a purpose statement is an essential component of the brand compass , a strategic messaging system that also includes vision , mission , and values .

So, what’s the difference between a purpose statement and a mission statement?

The answer is fairly straightforward. Where a purpose statement describes the simple, profound idea behind why an organization exists, a mission statement is a more detailed account. Your mission statement outlines what you plan to do as an organization, how you plan to achieve it, and whom you’re doing it for.

You can think of your purpose statement as describing the emotional or philosophical motivation behind your business, while your mission statement is a strategic roadmap for your business’s success.

Organizational purpose isn’t just for environmentally or socially conscious brands, either. A well-crafted purpose statement that powerfully communicates your organization’s raison d’être is one of the best ways to connect with those you serve on a more profound, human level.

As we’ll see below, connections like these are a powerful way to boost brand loyalty among customers and employees alike. Let’s take a closer look some of the most immediate benefits of a strong purpose statement.

Attract & Retain Top Talent

Today’s employees are looking for more than competitive salaries and attractive benefits packages. The best talent out there wants to work for purpose-driven companies. This makes purpose an indispensable component to effective employer branding .

This fact has been borne out by multiple studies of late. Take the findings from Porter Novelli’s Purpose Perception Study , which surveyed 1,200 adults ranging in age from 18 to 69.

The study found that:

• 78% of employees are more likely to want to work a purpose-driven company
• 72% are more likely to be loyal to that company
• 72% are more likely to forgive that company if it makes a misstep

Not only does clearly defining and communicating your company purpose put your business in a more competitive position in the labor market, it also ensures that the employees you do hire will stick around longer. Reduced turnover means more cohesive company culture and better brand alignment . It also means the investments you make in your workforce will have larger, longer-term dividends.

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Improve Productivity

The benefits of a clearly articulated purpose don’t end with attracting talent and building culture. Business purpose is a powerful driver when it comes to employee productivity.

The simple truth is that inspired employees are more productive employees. As we’ve already seen, purpose gives your team motivation that goes beyond a paycheck and a benefits package. It gives them a reason to get out of bed in the morning.

When workers have a purposeful reason for putting in long hours that goes beyond mere financial compensation, they are more likely to see personal sacrifices as worth it. A more cohesive company culture filled with more motivated employees naturally leads to a more inspired, more productive team.

Inspire Your Customers

Where employees want to work for purpose-driven brands, customers want to buy from them. We see evidence of this fact borne out in study after study.

Porter Novelli found that purpose matters in important ways to vast majorities of consumers:

• 66% of customers consider a company’s purpose when making purchase decisions
• 78% are more likely to remember a company with a strong purpose

In today’s marketplace, it’s simply no longer good enough to compete on the basis of cost or quality alone. Today’s customers expect more from the businesses they engage with. They want to align themselves with brands that share their values. That starts with purpose.

Brands with a clearly defined, authentic sense of purpose will always have an edge in our increasingly socially conscious consumer landscape.

Meaningfully Differentiate Yourself from the Competition

Speaking of competition, your core purpose is one of the most profound ways to set your brand apart from similar brands in your industry.

Not only are customers more likely to recognize, remember, and engage with a purpose-driven brand, they’re also more likely to purchase it over the competition. In fact, 71% of customers say they would purchase from a purpose-driven company over the alternative when cost and quality are equal.

The fact is, if you haven’t clearly defined your purpose statement, you can’t very well build a purpose-driven brand. And if you haven’t built a purpose-driven brand, you’re missing out on a fundamental opportunity to create meaningful competitive differentiation , connect with customers, and gain market share.

The numbers don’t lie. Both internally and externally, business purpose is an essential ingredient of business growth.

So, what separates a strong purpose statement from a less effective one? There are five qualities that every good business purpose statement should have.

A strong purpose statement is:

Purpose starts first and foremost with authenticity. The two ideas are inextricably linked. So, what does it mean for a company purpose to be authentic?

An authentic purpose statement is one that is borne from an honest accounting of who you are as an organization, where you started, and where you’re headed. It is a genuine sentiment that reflects your true character and values and that’s aligned with your brand positioning .

An authentic purpose is ultimately also a human idea. It isn’t about your own business’s growth but about the change you hope to affect in the world. Which is a good segue to our next essential quality of every strong purpose statement.

A strong corporate purpose isn’t just honest and genuine, it’s also deep and meaningful. Your purpose should mean something—both to those within your organization and to those you serve.

A profound purpose is an idea that makes people think. It should convince both your customers and your employees that you stand for something beyond quarterly reports and balance sheet figures.

Many brands find profound purpose in environmental and/or social impact, but not every purpose has to be centered on an ESG-oriented value proposition . A profound purpose can be as simple as making the world a happier, safer, or more enriching place.

The best purpose statements aren’t just authentic and profound, they are also inspiring. Your purpose, remember, is the reason you do what you do as an organization. It is by its very definition a motivational idea.

Describing that motivation in a way that inspires people to act is the best way to get the most mileage out of your purpose statement—and build brand equity in the process. Your purpose statement should inspire your employees to find deeper meaning in the work they do, giving them the impetus they need to push through challenging times.

Your business purpose statement should also inspire your customers. Not just to buy your products and services (although, as we’ve seen, that’s one of the most tangible benefits of a well-crafted purpose), but also to associate themselves with your brand. Customers inspired by purpose will always be your best brand advocates.

A quick Google search will turn up business purpose examples of all shapes and sizes. This includes long, run-on sentences that unpack not just why a company does what it does, but also what, how, and for whom. As is the case with nearly all writing, however, the best of the bunch are the shortest ones.

A purpose statement should be as concise as possible for two reasons. One, your organizational purpose is the answer to one question and one question only: why? Second, the shorter the statement, the more powerful it becomes.

You’ll see this firsthand in the purpose statement examples we’ve collected below. While we limited our list to the best purpose statements we could find, you’ll see that even among these highlights, the shortest and simplest statements outshine the others.

Take Netflix’s “To entertain the world” or Kroger’s “To feed the human spirit.” Both leave little room for doubt when it comes to the profound reasons why these companies exist—and do so in as few words as possible.

The final quality of a strong purpose statement is clarity. After all, your corporate purpose can be as authentic and concise as possible, but if it’s vague or ambiguous it won’t be very meaningful or inspiring to those who hear it.

A clearly stated core purpose is one that isn’t too abstract or philosophical. It doesn’t beat around the bush when it comes to plainly answering the question “why?”

We’ll explore more about how to craft a clear, concise purpose statement in our next section, but suffice it to say that when it comes to communicating the singular reason your business exists, clarity is kind.

Think of the five essential qualities above as the ultimate criteria for the final draft of your purpose statement. But one of the keys to writing a strong purpose statement is not to worry too much about checking all of the boxes when you first get started.

Let’s take a closer look at what the process looks like when you’re ready to write your company purpose statement.

So how do you write a business purpose statement of your own? We’ve boiled it down to three simple steps that are sure to result in an effective and impactful statement.

1. Identify Your Purpose

The first step in the process is brainstorming and ideation. This is the “no bad ideas” phase, where the goal isn’t to worry about conciseness or clarity, but rather to come up with a handful of ideas to choose from.

Put together a small team of your most creative minds in front of a whiteboard and start by asking yourself the following questions:

• Why do we exist as an organization?
• Why do we do what we do as a business (beyond making money or increasing shareholder value)?
• What positive change are we looking to affect in the world?
• Why do we get out of bed in the morning to go to work (beyond a paycheck)?
• What is it that drives us to put in extra effort or push through challenging times?
• Why do we work long hours or put up with the occasional unruly customer or make any of the sacrifices we do to keep our business moving forward?

Once you have a handful of ideas, try to identify a single idea or theme that is behind them all. The goal is to get to the heart of why you do what you do.

Pro tip: if you think you’ve put your finger on it, ask “why?” again. Is it to better your community? To make people happy? To make the world a safer place? You’re looking for a central, profound idea behind everything you do.

Imagine yourself as the precocious, insatiably curious kid, who keeps asking why until you get to the heart of the matter.

2. Articulate Your Purpose

Once you think you’ve hit on the idea that is at the root of why you do what you do, the next step is to craft it into a purpose statement.

Now, because purpose statements are essentially answers to the question “why?” most of them take a similar format.

So, “Why do you do X?”

“We do X to Y”

Or, more simply:

Purpose statements that start with an infinite verb like this are by nature actively oriented. And actively oriented statements will always be more inspiring and motivational than passively oriented statements.

Try following a similar format with your purpose statement. In the sentence, “We do X to Y,” what are your X and Y?

Maybe you “sell electric vehicles to keep people moving.” Or maybe you “design cutting-edge apps to navigate the world.” Or perhaps you “produce fertilizer to make the world a greener place.”

Whatever your answer might be, whittle it down to just the Y:

To keep people moving.

To navigate the world.

To make the world a greener place.

Remember, when it comes to purpose statements, the shorter the better. Try to boil it down to a single idea and aim for no more than 6 or 7 words. Don’t worry about the “what” or “how.” The goal is not a statement that says “To do X because of Z so that Y.” You’re just looking for “To Y.”

3. Communicate Your Purpose

The final step of any good purpose statement is to use it as inspiration throughout your business. As we’ve already seen, purpose should be at the very heart of everything you do as an organization.

From your business model to your branding to your marketing and beyond—all of it makes more sense and is more impactful when you start with “why.”

Internally, your purpose statement should be an integral part of brand compass messaging that your entire team is familiar with. It should be documented in your brand guidelines and be used as a cornerstone of internal communications.

Externally, your organizational purpose should be the starting point for your brand story . As we’ll see in out next section, the world’s most compelling brands are those with purpose-driven brand experiences .

Customers instinctually gravitate towards brands with an authentic sense of purpose that shines through in everything from their brand messaging to their brand design .

Purpose has become increasingly more important to Fortune 500 brands like those listed here. Let’s take a look at how these brands have articulated their purpose statements—and leveraged them to build more meaningful connections with those they serve.

AT&T’s Purpose: “To connect people to greater possibility – with expertise, simplicity, and inspiration.”

BlackRock’s Purpose: “To help more and more people experience financial well-being.”

Coca-Cola’s Purpose: “Refresh the world. Make a difference.”

CVS’s Purpose: “Bringing our heart to every moment of your health.”

Intel’s Purpose: “To create world-changing technology that improves the life of every person on the planet.”

Kohl’s Purpose: “To inspire and empower families to lead fulfilled lives.”

Kroger’s Purpose: “To feed the human spirit.”

MetLife’s Purpose: “To help our customers navigate life’s twists and turns.”

Ralph Lauren’s Purpose: “To inspire the dream of a better life through authenticity and timeless style.”

Target’s Purpose: “To help all families discover the joy of everyday life.”

Verizon’s Purpose: “To give people the ability to do more.”

Walgreens’ Purpose: “More joyful lives through better health.”

Walmart’s Purpose: “To help people save money so they can live better.”

REI’s Purpose: “To awaken a life-long love of the outdoors.”

Amazon’s Purpose: “To be Earth’s most customer-centric company.”

Netflix’s Purpose: “To entertain the world”

Disney’s Purpose: “To entertain, inform and inspire people around the globe through the power of unparalleled storytelling.”

Google’s Purpose: “To organize the world’s information”

Zappos’s Purpose: “To deliver WOW.”

Red Bull’s Purpose: “To give wings to people and ideas”

Lyft’s Purpose: “To improve people’s lives with the world’s best transportation.”

Adidas’s Purpose: “Through sport, we have the power to change lives.”

Apple’s Purpose: “To empower creative exploration and self-expression.”

Chobani’s Purpose: “To make better food for more people.”

IKEA’s Purpose: “To create a better everyday life for the many people.”

Lego’s Purpose: “To inspire and develop the builders of tomorrow.”

SAP’s Purpose: “To help the world run better and improve people’s lives.”

Microsoft’s Purpose: “To empower every person and organization on this planet to achieve more.”

Airbnb’s Purpose: “To help people to belong anywhere.”

Tesla’s Purpose: “To accelerate the planet’s transition to sustainable energy.”

Patagonia’s Purpose: “To save our home planet.”

A powerful purpose statement is one of the best ways to foster brand loyalty and build brand equity. By identifying your organization’s reason for existing beyond making money and articulating a clear, concise, and authentic statement that communicates that reason, you can set the stage for creating deeper connections with customers and employees alike.

Take inspiration from the growing list of Fortune 500 brands, whose business purpose examples are listed above. Few things are more powerful than purpose when it comes to creating a profound brand experience that speaks to audiences on a deeply human level.

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How to Develop Your Company’s Purpose Statement

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If you aspire to lead or start a company, you’ll play a crucial role in driving its vision, goals, and plan for success. A purpose statement establishes the foundation you need to do that effectively.

While some degree programs touch on the topic of purpose statements, you might not realize how this concept can apply to your future career . 

Here’s how you can take the skills you’ve learned from your business degree and use them while writing an effective company purpose statement. 

What is a Purpose Statement?

The first step to understanding a purpose statement is to distinguish it from a mission statement because each plays a different role in your business plan .

Mission Statement vs. Purpose Statement

A purpose statement is a single statement that defines the reason your company exists—beyond simply making a profit. It also illustrates how your product or service positively impacts the people you serve. Once your purpose is established, you’ll need a series of goals to drive that purpose. That’s where the mission statement comes in.

First and foremost, a mission statement is actionable. It explains the path you need to take to reach your purpose. So, while a purpose statement is focused on the future, a mission statement is rooted in the present.

Unlike a company mission, your company purpose isn’t something that can be completed or checked off a list. A purpose statement illustrates the ongoing pursuit to push your company forward.

What Does a Purpose Statement Do?

A purpose statement sets expectations, both internally (for leadership and employees) and externally (for customers and investors). It acts as your company’s blueprint for the future and helps guide all the decisions you make—from how you manufacture your products to the words you use in your marketing.

Your purpose also influences your customer. In fact, 63% of global consumers prefer to purchase products and services from companies that stand for a purpose, according to recent research.

The study found that companies that stand for something bigger than what they sell, communicate their purpose, and demonstrate commitment are more likely to attract consumers and influence purchasing decisions.  

Leaders around the world are taking note of the rise of purpose-driven companies , too. Lise Kingo, CEO and executive director of the UN Global Compact, stated, “The idea of business as an agent of change and a purveyor of positive values is gaining traction and legitimacy around the world. With a growing number of companies taking steps to be more responsible in how they treat employees, communities, and the planet, we are seeing business emerge as a real player and solution-provider in the quest to put our world on a better course.”

Beyond attracting customers and increasing your bottom line, clarifying your company purpose is important for these reasons:   

1. Distinguishes Your Business from Competitors

One important role of your purpose statement is to define what makes your company unique. After all, your competitors might be able to replicate your product or service, but they’d be hard pressed to duplicate your unique purpose.

People can be genuinely inspired if your company has a solid purpose. When customers and employees understand what drives your passion and ignites your purpose, they’re more likely to get on board with it.  

2. Helps Meet Goals

A strong purpose statement sets a path for how your company will move forward, which will help you see and set clear goals. These goals should go beyond financial performance; they should also measure how your purpose is progressing toward the social impact you’re trying to make.

3. Informs Company Culture

A recent employee survey by Harvard Business Review found that only 28% of employees felt connected to their company’s purpose, and 34% thought they were contributing to their company’s success. According to the article, a lack of purpose among employees can create a negative company culture where employees feel unmotivated and unaligned.

So how do you avoid this?

Creating a purpose-driven culture starts with clear communication between employees and leadership—as well as listening and being open to feedback. When everyone understands and supports the company's purpose, it creates a united front where everyone from the top down is working toward the same goals.

Furthermore, multiple studies show a purpose-driven culture is a positive one. This is because employees feel more engaged and motivated when they can connect the work they do with how it contributes to the organization’s purpose .

How Do I Write a Purpose Statement?

Creating a company purpose statement is no small task. It requires a deep understanding of why your company exists and where it hopes to go in the future. If you’re still feeling stuck, here are some steps to take as you're developing your company's purpose.

Step #1: Define what you do.

But more specifically, lay out what your company does to solve a particular problem for your customers.

Step #2: Pinpoint your passion.

Think about what inspires the work you do. For example, are you passionate about creating sustainable products? Do you strive to be the most innovative? Are you focused on serving local communities?

Step #3: List your values.

Understanding the things your company is passionate about will help you come up with specific values that align with your purpose. Those values might include things like sustainability, innovation, integrity, quality, etc.

Step #4: Create a draft.

Once you’ve defined what you do and why you do it, take pen to paper and start drafting ideas for your purpose statement.

As you’re writing, make sure your purpose statement is:

• Short (about 1-2 sentences)
• Easy to understand
• Aspirational (but not vague)

Step #5: Get feedback.

Ask others in your organization to review what you’ve written and consider their feedback as you hone your purpose statement.  

Step #6: Leave room for growth.

Keep in mind that a purpose statement is a constant work in progress, and changes will happen as your business evolves.

Examples of Effective Purpose Statements

Use these company purpose statements to draw inspiration from:

• Southwest Airlines lets its personality shine through in its purpose statement: “Connect people to what's important in their lives through friendly, reliable, and low-cost air travel.”
• Kellogg’s and Coke keep it short and sweet: “Nourishing families so they can flourish and thrive.” – Kellogg’s,  “Refresh the world. Make a difference.” – Coke
• If you’re looking for an example of an empowering purpose statement, here’s Dove’s: “Discovering the value of 'real' beauty and improving self-esteem worldwide.”
• Both The Red Cross and Whole Foods have purpose statements that make an emotional connection: “Our deepest purpose as an organization is helping support the health, well-being, and healing of both people—customers, Team Members, and business organizations in general—and the planet.” – Whole Foods, “To protect life and health and to ensure respect for the human being .” – The Red Cross
• Crayola and Lego lean on their ability to inspire: “Encouraging children to be creative, and enabling parents to inspire them.” – Crayola, “To inspire and develop the builders of tomorrow.” - Lego

Now that you know what a company purpose statement is, why it’s important, and how to develop your own, you’ll be ready to put this important business skill into practice in your own organization.

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The Essentials of Writing a Powerful Business Purpose Statement

Businesses today share fundamental corporate and social commitments. They seek to inspire the community, attract talent, and out-originate competition. And more and more of them have a purpose that goes beyond profit.

Crafting your Business Purpose Statement is a pivotal step in the early stages of identifying your enterprise’s core values and objectives. It’s the single line that encapsulates the very reason for your company’s existence, serving as a testament to your branding efforts.

A business’s purpose statement mirrors the connection between your core products and services and the positive impact they have on people’s lives. This statement acts as a compass for your company’s daily decisions, guiding your go-to-market strategies and initiatives.

In this article, we have prepared a few tips to help you write a powerful business purpose statement as well as practical guidelines on how to craft it well.

The Differences between Purpose, Mission, and Vision

Before we walk you through the specifics, we would like to make some important distinctions. Namely the differences between vision, mission, and purpose.

• A vision statement describes what your business is looking forward to and working towards. It’s the what of your organization.
• A mission statement outlines the process of turning your vision into a reality. It’s the how of your company.
• A purpose statement sets your reason for doing what you do. The why of your venture’s existence.

The three types of statements reflect different aspects of your organization’s operations and differ in the questions they answer. However, they are closely related plans of action that can help you deliver what your company is ultimately fighting for.

Without further ado, let’s get into the nitty-gritty of how to make your brand stand out with a strong and well-defined purpose statement.

1. It Should Inspire and Show Personality

Defining your purpose statement is a process. Adding the right words to correctly depict the reason for your company’s existence is a bit harder than you may imagine. The answer to your business’s “why” may seem obvious to you, but the key is to ground it in reality and communicate it to your audience successfully.

Start by reflecting on how your company came to be – the reason for creating it, the challenges you’ve overcome, the lessons you’ve learnt and the values you’ve adopted.

If you are an emerging entrepreneur with a completely new venture you can also apply this approach, but in a more personal context. Look back at the significant turning point that prompted you to become a business owner.

If you’re an established business with a long history of success, you can acknowledge the milestones of your firm’s growth. You can identify and define your business heritage and pin-point the specific characteristics of your brand that made it stand out all these years.

Make sure your purpose statement doesn’t include buzzwords or jargon. Use simple and clear language to directly communicate what your company’s here to accomplish.

2. It Should Play a Role with an Outcome

Since your purpose statement answers your company’s why it should set the outcome of what your business ultimately wishes to achieve and see out there.

Start your research by talking to your leadership. Ask them various questions and summarize the recurring themes.

Here are some examples:

• Why are you in this business?
• What do you like the most about working in the company?
• What image do you think the company conveys to the outside world?
• How do you feel about this image? What do you like and dislike about it?
• What specific challenges does the company solve?
• What do you think the purpose of the company is?
• What makes this business different from competitors’?
• Who are the target customers?
• What do you think they value most about this company?
• How do you think the company’s products and services reach their business goals? Do you think it’s effective? Would you say they reflect the business’s purpose?
• What are five words you would describe the company and its culture with?
• What underlying principles and philosophies shaped your responses to the previous questions?

Make sure you involve every leadership member . Think carefully about what you want to ask them. Form clear questions and take detailed notes.

Word your company’s purpose in a way that inspires room for thoughts while directly underlining your organization’s value proposition.

3. It Should Be Short, Yet Powerful

Your business purpose should be credible and easy to remember, especially by your employees. They are your most important resource and every one of them can influence how your organization is represented outside your office walls.

Your employees provide an essential link between you and your customers. Their energy can be a powerful asset to ensure that the entire organization leads with purpose. If they are happy, motivated and find a sense of fulfilment, they can be strong ambassadors of everything your brand stands for.

To find out how your employees feel about the purpose of your company you can ask them questions like:

• What inspired you to apply to this company?
• What do you like the most about working there? What makes you feel proud about it?
• How do you think the company’s products/services help customers?
• In what ways do you identify yourself with the company?
• What do you think is the company’s purpose? How would you put it in a few words?
• Do you think the purpose is reflected in the company culture?

Being in sync with your employees can help you make your business more agile and more responsive to challenges.

Always remember that your employees bring to light your purpose. The better it sticks in their minds the more natural it will be for them to communicate through their work.

4. It Should Create Space for Innovation and Growth

You’ve reflected back on how your organization has matured. You’ve sought and gained employee and leadership insights. Now, it’s important to identify the events and trends that can affect the social, political, economic and technological contexts that your brand operates in.

Maintaining a clear understanding of the present and the ability to anticipate and study future trends can set you apart. Align your Business Purpose Statement with real-world contexts to give it tangible meaning. This clarity allows you to understand opportunities more deeply, challenge the usual way of doing things, find the best solutions, and build on ideas. Hence, a compelling purpose statement may sometimes be wrestling with conflicting tensions all for the sake of fostering innovation and growth.

Purpose statements that fall into this category include:

With this statement, Workday showcases that there’s a possibility of instilling the human aspect into software and that it’s what they strive for.

With this statement, JetBlue deals with the tension that there are no boundaries to great customer experience.

5. It Should Be Aspirational and Precise

Your purpose statement should give a sort of tingle – a burst of inspiration and excitement. It should make your company want to strive to grow, to innovate, and to set an example. So, adding a pinch of emotion helps everyone involved to embrace it as their own.

The purpose of your business should reflect rational reasons for which it can supercharge your brand, culture, and business strategy as well as your organization’s ethics. Simply stating something, doesn’t make it come to life. Hence, a meaningful purpose statement should be able to influence a good purpose in practice. It should be aspirational and precise, expanding your organization’s opportunities for growth.

A vague example goes like this: “To make the world a better place”. A good example is more like this:

Additionally, your purpose statement can have a general or a social focus. Some companies have a more general statement, which doesn’t necessarily involve a social or environmental aspect.

An example of this is Airbnb’s statement:

It’s precise and showcases the company’s commitment to helping people travel like locals and experience a sense of community they wouldn’t be able to find in a hotel

This doesn’t mean that Airbnb doesn’t care about social or environmental issues. It simply means that it’s not at the very core of their existence.

To show you the difference, a business with a good social purpose is Patagonia:

6. It Should Evolve with Time

Purpose isn’t something that can be achieved once and for all. Companies grow, the business and social contexts change and your purpose statement should stretch along with these. It should always push your team further and it should set the stage for an inexhaustible series of new goals.

Let’s take Tesla as an example. Their original statement was:

But their current statement is:

The change from transportation to energy reflects also the shift in Tesla’s priority from an electric vehicle company to developing technology that makes sustainable energy more accessible.

Benefits of a Powerful Purpose Statement

Your company’s purpose statement establishes your business´s unique and inimitable attributes. It provides your brand with a competitive advantage and it acts as a guide for overcoming unprecedented challenges. It sets the tone that moves your organization forward, but it’s meaningless if not backed by solid and measurable commitments.

We hope our guide can help you create a defined and powerful business purpose statement for your organization. In fact, we would love to see what you’ve crafted, so don’t hesitate to share it with us in the comments below.

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We set benchmarks in content creation by incorporating cutting-edge marketing trends, leveraging in-depth industry research, and utilizing state-of-the-art AI tools for data segmentation and captivating content hooks. Our proficiency extends across a diverse range of sectors, including working with SMEs, Fortune 1000 companies, global B2B brands, major publishing entities, WooCommerce platforms, business directories, and affiliate networks.

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How to write an effective business statement of purpose

Written by Michael Feder

Reviewed by  Kathryn Uhles , MIS, MSP, Dean, College of Business and IT

In this article

What is a purpose statement, how to write a purpose statement.

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Every business, regardless of size, industry or revenue structure, needs a purpose statement. The statement should capture a company’s purpose, vision and values and summarize its main goal in one or two sentences.

A purpose statement is a single, concise, declarative statement that identifies why a company exists. It is shared with customers and helps inform business decisions by outlining a business’s direction and how it aims to inspire and positively impact others.

Just like social capital , a purpose statement can cultivate goodwill with customers. People may prefer buying from, or partnering with, companies that maintain a high moral standard . It’s important for companies to maintain those high standards, both for customer visibility and to drive operations forward.

Purpose statement vs. mission statement vs. vision statement

A mission statement, vision statement and purpose statement sound similar, but they actually fulfill different roles. A mission statement best describes a company’s overarching goal. A vision statement is a declarative statement about a company’s purpose. Both statements are often only shared internally with employees or key stakeholders.

Mission statements should describe an organization’s reason for existing. They might describe the mindset of a business’s leaders, list and define core values, or describe how a company inspires to improve or change the world. 

A purpose statement, meanwhile, defines a company’s purpose as a means to direct activities. It is meant to be shared not only internally but also with potential customers or brand participants.

To this end, purpose statements should address customers and connect what the business does with whom it does it for. Consider this a person-first version of the mission statement, with customers at the center of a business’s objectives.

What makes a purpose statement effective?

Several elements go into writing an effective purpose statement. When creating one for your company, make sure you prioritize elements like clarity, honesty and an understanding of your business’s sector.

Even if potential customers aren’t familiar with your brand, they should be able to understand what you do just by reading your statement. Make it concise, use active verbs and eliminate unnecessary details so you can focus on your main, customer-focused goals.

Exaggerating or including false information can harm your business. Misrepresentations of your company can lead to overpromising and underdelivering — two of the quickest ways to alienate customers.

For best results, be transparent and accurate.

Positioning

An honest purpose statement should also highlight what makes your company stand out from the competition. This element requires an understanding of your industry and a strong competitive analysis.

Try to help potential customers choose your business over the competition by highlighting your organization’s advantages, all while being careful not to belittle other companies.

When writing a purpose statement for your organization, address your target audience while emphasizing elements that make your company different from the rest. You will need to decide who writes and contributes, and who can provide feedback about how the statement resonates with employees.

1.   Decide who will write the purpose statement

First and foremost, decide who will write the statement. This may not be easy, particularly for companies with large marketing departments and multiple executives. Some companies might have several employees who want to write or contribute. In other cases, it might be difficult to find anyone to volunteer.

For best results, make sure someone with a business background writes your organization’s purpose statement. Ideally, this person should have a business degree that included course content in operations, communication and business management.

The best purpose statements are sometimes written by employees with a master’s degree in business. These individuals can leverage executive-level business leadership and administration skills to create something that resonates with all company representatives.

If your company can’t agree on one person, consider making the statement a collaborative effort. Schedule a meeting or two when everyone can share their thoughts. You can use the ideas to form the initial draft before distributing it throughout the company for feedback.

2.   Address your audience

Your purpose statement should be all about your audience. Keep it directed toward your potential customers and describe the elements of your organization that might appeal to them.

This is an opportunity to describe your company’s reason for existence, with customers as your direct audience. Craft the messaging with the recipients in mind, and don’t be afraid to emphasize how important customers are to the company’s continued success.

3.   Consider what makes your company stand out

Your company is unique no matter how many other competitors might be in your field. Your statement should highlight your company’s unique features as compared to every other company operating in your sector and should align with your overall business plan.

Focus on the goods and services that make you a better fit for customers than other providers. To do this, you’ll need consider everything that makes your company stand out. This step is vital when starting a new business since it will help you focus on your organization’s best qualities.

4.   Get feedback

No matter how confident your company might be in the first draft of your purpose statement, it’s still a great idea to get feedback. Give internal employees the chance to read the statement, and remain open to what they have to say about it.

Getting feedback while drafting your purpose statement can help you gain a fresh perspective on your business. You’ll learn to view your company through other employees’ eyes. You’ll also achieve a more complete definition of your company’s purpose.

Examples of strong purpose statements

So, how do you pull it all together? Indeed.com has some examples , including:

• “We strive to protect wildlife through education about endangered species.”
•  “Our purpose is to bring awareness to the need for medical supplies in overpopulated cities.”
• “We work toward building a safe and secure community by implementing emergency calling systems.”

Joseph Aranyosi, associate dean of the College of Business and Information Technology at University of Phoenix, offered a few more:

• “Our purpose is to provide sustainable food alternatives that can help to minimize greenhouse gases and reduce global warming.”
• “We offer affordable healthcare options for low-income patients to proactively address medical issues and reduce healthcare costs.”
• “We develop automated customer service solutions and custom-built social media apps to promote small business growth.”

Gain critical business skills with an online degree

University of Phoenix offers several business degrees that prepare students with skills for a variety of career paths. Whether you’re looking to build the fundamentals or advance your skill set, there’s a degree program for you. Here are just a few online business programs at University of Phoenix to consider:

• Associate of Arts with a concentration in Business Fundamentals   —   From management to accounting, the skills learned in this program are essential for anyone looking to advance their business education. 
• Bachelor of Science in Accounting   —   Businesses around the world rely on skilled accountants to manage their finances and make profitable business decisions.
• Bachelor of Science in Business   —   Knowledge of the ins and outs of running a business can spell the difference between success and failure in a competitive business world. 
• Bachelor of Science in Communication   —   It’s one thing to have a great idea, it’s another to properly communicate that idea to a large audience. Develop skills to be a media relations specialist, copywriter and more in this degree program.
• Master of Business Administration   —   Advance your business skills beyond the fundamentals and prepare yourself for higher leadership roles. This degree program can prepare graduates for careers as business managers, operations directors and more.
• Master of Management   —   Take your understanding of business organization and management to an advanced level. This degree program is perfect for those with experience in the workforce who are looking to take on greater leadership roles. 
• Doctor of Business Administration   —   Expand your understanding of organizations, work environments and industry. This program invites participants to delve into cutting-edge research in the field of business and develop skills for solving complex organizational problems. 

ABOUT THE AUTHOR

A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at University of Phoenix where he covers a variety of topics ranging from healthcare to IT.

ABOUT THE REVIEWER

Currently Dean of the College of Business and Information Technology,  Kathryn Uhles has served University of Phoenix in a variety of roles since 2006. Prior to joining University of Phoenix, Kathryn taught fifth grade to underprivileged youth in Phoenix.

This article has been vetted by University of Phoenix's editorial advisory committee.  Read more about our editorial process.

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How To Write a Purpose Statement That Actually Matters

by Idoia Gkikas 6 min read

P P urpose-focused, purpose-led, purpose-driven ... For years, companies have stretched and stuffed purpose statements to where they've lost their, well ... purpose.

It’s a shame. Because a succinct, emotionally resonant purpose statement defines why your brand exists beyond making money. Get that right and you've got the goods for inspiration — even in the toughest of times, for the duration of your company.

Still, not everyone sees eye to eye on purpose statements. Some people think they're critical to success. Others think they're played-out gimmicks to avoid.

At Focus Lab, we’re mainly in the first camp — “mainly” because a purpose statement alone cannot and will not carry the weight of your entire brand. But we’ve learned that brands with a clear purpose win out, time and again, in ways both tangible and intangible, from effective messaging to employee engagement to business strategy execution. In fact, the first three statements we write for our clients are purpose, mission, and vision. Together, these messages are a manifesto on your brand’s place in the world, and how you aspire to operate within it.

Over more than a decade of branding projects, we’ve learned how to identify purpose statements gone wrong — and how to get them right.

What’s the Purpose of Purpose?

In the B2B tech world — the world in which Focus Lab works — purpose can be a hard sell. Who cares why the company exists? Customers have a problem, you sell a solution. Leave the woo-woo stuff to your life coach.

Valid point. All companies exist to make money. It’d be naïve to say otherwise. But, like it or not, the days of “we make shit, we sell shit, and everything else is bullshit” are long gone. Companies are powered by their employees and fueled by their customers — real people, bombarded with brands that promise to help them achieve their hopes and avoid their fears.

This is your opportunity to hit a high note in the cacophony. When part of a thoughtfully orchestrated brand identity, a purpose statement helps your brand:

• Inspire and motivate employees and stakeholders.
• Differentiate the company from competitors.
• Attract and retain customers and clients who share the company’s values and mission.
• Guide strategic planning and decision-making, which can help the company stay true to its vision.

Sounds great, but here’s where things get tricky.

How Not to Write a Purpose Statement

Because purpose is so powerful, it's vulnerable to bloat and buzzwordery. This happens when a purpose statement is warped into a tagline or a hashtag — a symptom of branding confused for marketing .

To explain: Brand, branding, and marketing are related, but not synonymous. Your brand comprises the intangibles — feelings, memories, associations, comparisons. It lives in your customers’ minds. Branding (or, roughly, your brand identity) is the system that guides your external presentation to the world — elements like your logo, color palette, voice and tone, and so on. Branding leads your customers to have the feelings and associations you want them to have toward your brand. Marketing is the strategy for pushing these inputs to the outside world. “ Brand is the pull, marketing is the push. ”

As a statement, your purpose is part of your branding. However, when purpose is approached like marketing, the statement will likely have one or more of these red flags:

• It mentions stakeholders and/or customers.
• It mentions profits.
• It mentions products or features.
• It’s too specific/time sensitive.
• It’s too vague/abstract.
• It’s too long (>15 words).
• It’s a string of corporate buzzwords.
• No one outside of the C-suite knows, remembers, or believes it.

Your customers may latch onto your purpose, but that’s not why you write it. Purpose can’t have a price tag. For all that’s at stake, there must be no strings attached.

Purpose can’t have a price tag.

How To Write a Brand Purpose Statement

If you don’t have one, or you’ve realized that your current one could use a critical eye, these best practices can help your statement get on track.

• Be comfortable with common language. Purpose is about heart, not style. You know what Focus Lab’s purpose statement is? “To help unlock the potential of the people around us.” This statement isn’t unique, but our interpretation and execution of it is. It doesn’t shoulder the weight of our entire brand experience; it informs it — from our logomark (which, in fact, symbolizes unlocking potential) to our benefits package.
• Write something you actually live out. Stress-test your statement. Does it apply to customer service? Products and services? Employee benefits? Business strategy and execution? Visual and verbal expressions? If not, you have two options: Revise the statement to align with your business, or revise your business to align with your statement.
• Invite everyone. Your brand has the potential to positively impact everyone around you. Include all people and your statement will inspire and endure. Save any mention of customers, revenue, or stakeholders for your mission statement.
• Be brave enough to say eight words that mean something instead of 20 words that sound good. Brevity is bravery. Let your purpose statement do one job. There are countless other touchpoints that will tell the rest of your story.

When it's time to put pen to paper, be selective about who’s involved. Call on those who are close to the people side of operations — typically HR and customer service, client-facing teams, new hires that have just gone through the onboarding experience, sometimes founders and executives. We don’t recommend involving marketing teams for the reasons cited above. If possible, engage an outside party to corral inputs, impart objectivity, and uncover potential where you might not see it. A brand agency is, of course, one option, but a brand communications specialist or organizational consultant are suitable, too.

Will your brand fall apart without a purpose statement? Nah. Not that it’s not important, but again, purpose is just one piece of your brand’s puzzle. Sometimes, your brand needs space to grow into it. A commonly cited statistic is that most companies undergo a rebrand every 7-10 years, making that a logical time to reflect on why your company exists. Still, we do encourage you to dedicate time to explore your brand’s reason for existing.

This is an exercise that requires you to write from your heart, not your bottom line. It isn’t easy. But when you discover those eight words that are timeless and true, there will be a sense of rightness to their existence — and confidence in their endurance.

Photos by Annie Spratt , Jamie Street and Talia Cohen on Unsplash

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The Brand Way to M&A: Part Three — Go to Market Better than Before

Co-Creating The Brand You Want

Purpose Statement: All You Need to Know

Every organization in the world knows “what” they do, most know “how” to do it, but only a few know “why” they do what they do. This “why” isn’t about profit maximization. It’s the reason for the organization’s existence.

See also: Mission Statement

What is a Purpose Statement

A purpose statement is one that clearly explains this “why” and its impact on human, societal, or environmental goals. It addresses the question – “What would the world lose if the company disappeared?” in the most believable, authentic, and inspiring words.

The simplest and most popular definition of a purpose statement is “A higher-order reason for an organization’s existence that goes beyond making money and adds value to society.” [1]

Why having a purpose is important

At its best, a purpose can act as a North Star, a guiding light that allows everyone in the organization from the leadership to the newest employee to understand what they must accomplish and serves as a filter for daily decisions.

In an organization with a well-defined purpose statement, every employee understands the “Why” behind the organization’s existence, defines it in the same way, and more importantly, feels a strong connection to that purpose.

While this might sound theoretical, its real-world implications are profound.

A study by Korn Ferry titled “People on a mission” found that organizations that took the challenging steps of defining their core purpose not only saw strong bottom-line results but also transformed all aspects of their business.

The study revealed such companies posted compounded annual growth rates (CAGR) of 9.85% compared to 2.4% for the whole S&P 500 Consumer Sector [2].

A purpose can also strongly influence an organization’s ability to attract and retain talent and customers. However, it has less effect on suppliers, prices, and other legal aspects:

Elon Musk’s companies, Tesla, and SpaceX, though very different in terms of what they do, exemplify the role of a well-defined purpose in shaping success.

As quoted by Mr. Musk, “Putting in long hours for a corporation is hard. Putting in long hours for a cause is easy.” This statement is well supported by the fact that Tesla and SpaceX have consistently ranked among the top choices for engineering talent in the US [3].

Post-pandemic, the significance of a company’s purpose has grown even more pronounced and had a downstream impact on hiring, morale, retention, and performance of employees.

According to a 2021 McKinsey study [4], nearly 70% of employees are reflecting on purpose because of the pandemic. The same study also found that employees who said they live their purpose at work were:

• Six and a half times more likely to report higher resilience.
• Four times more likely to report better health.
• Six times more likely to want to stay at the company.
• One and a half times more likely to go above and beyond for the company’s success.

In another PwC survey [5], 83% of the employees rated “meaning in day-to-day work” as important.

Elements of a good purpose statement

Before we define the elements of a purpose statement, it is important to distinguish between a company’s Purpose, Vision, Mission, Values, and Positioning.

Starting with the Purpose, an organization’s Vision, Mission, Values, and Positioning can be imagined as layers with each influencing the other as shown:

Many organizations use the terms Purpose and Mission interchangeably; However, the purpose defines the “why” while the mission is a big, bold step that is part of the ‘how’.

Purpose statements vary from being vague (e.g., Kroger’s “To feed the human spirit” [6]) to grandiose (e.g., Intel’s “create world-changing technology that improves the life of every person on the planet” [7]) to boring (e.g., Decathlon’s “to be useful for people” [8]).

A well-crafted purpose statement must represent the organization’s aspirations and send clear signals about what the company stands for. Creating one is as much a creative act as a strategic one.

A Harvard study analyzed 66 purpose statements from leading organizations around the world and gathered insights from senior leaders and employees. The learnings were used to develop a diagnostic framework that helps craft the best purpose statement for an organization based on its specific situation [9].

Known as the “SABRE” framework, it is based on five dimensions – four dimensions of content (i.e., what the purpose means) and one dimension of statement formulation (i.e., how the purpose statement itself is worded):

Must address a Societal cause

At a foundational level, a purpose statement must address a specific, pressing human, societal, or environmental need that the organization seeks to address or alleviate. However, not all organizations directly address such needs by virtue of their operations.

General-purpose companies, such as Microsoft or Airbnb, do not have a direct social or environmental impact due to their day-to-day operations, whereas social-purpose companies, such as Tesla, prioritize addressing social or environmental issues as a core mission alongside profitability.

Purpose statement for general-purpose organizations

Regardless of their type, an organization can still incorporate elements of societal impact into its purpose statement.

For example, Microsoft defines its purpose as “to empower every person and organization on the planet to achieve more” [10] which goes to show that even when a company is not directly involved in a societal cause, its purpose can still include elements of societal aspects.

Microsoft’s purpose can manifest itself in both ways, general purpose (its cloud computing business) as well as social purpose (X-Box adaptive controller for disabled kids, Office accessibility tools, AI for the visually impaired etc.).

Similarly, Airbnb’s purpose statement – ‘create a world where anyone can belong anywhere’ [11] is both grounded in everyday experience and stretches to an incredibly ambitious goal that seeks to break down barriers caused by cultural, geographical, and racial differences.

Airbnb went a step further to introduce the “Open Homes” program [12] which has helped countless people with temporary housing in times of natural calamities and crisis – a classic example of a social purpose manifestation.

Purpose statement for social-purpose organizations

It is easier to include the societal element in the purpose statement of companies that have a social purpose built into their core operations.

Tesla is a classic example. Its purpose statement is simple yet very powerful – “Accelerating the world’s transition to sustainable energy” [13].

This conveys huge environmental ambition and directly relates to what Tesla does – develop products that are not only sustainable but far superior to fossil-fuel alternatives, which might one day put an end to the era of fossil-fuel transport on the planet.

Must be Authentic

Stakeholders, both internal and external, look for companies in which they can place their trust. An organization’s stated purpose must accurately and honestly reflect its true aims. Otherwise, it can erode confidence and credibility in the eyes of these stakeholders.

ExxonMobil, for example, states its purpose as “Fueling the world safely and responsibly” [14]. However, the company downplayed the adverse impact of climate change for decades despite the knowledge of its causes and dangers since the 70s [15] [16].

Exxon has since been one of the prime targets of activists and politicians angered by the oil industry’s efforts to block action on climate change. Similarly, Philip Morris International’s purpose statement (which it changed in 2016) is “to deliver a smoke-free future”, but in 2022 alone, it shipped over 621 billion cigarettes [17].

Authenticity is also crucial to maintaining employee motivation and engagement. When employees perceive a mismatch between the stated purpose and the daily realities of organizational life, it can lead to disenchantment and, ultimately, the decision to quit.

For example, Volkswagen’s values include “sustainability and community: for the future. for everyone” [18]. However, when the group was hit by the Dieselgate emission scandal, its employee satisfaction took a significant hit.

Before the scandal broke, VW was rated the best in almost every dimension of workplace satisfaction when compared to peers such as BMW, Mercedes, and its own subsidiary, Audi.

When news of its emissions testing misconduct emerged, those positive numbers tanked, and VW was rated worst in 12 out of 13 dimensions of an employment survey [19].

Leaders can identify gaps between a company’s stated purpose and its actual direction by including questions related to the purpose statement in regular employee surveys.

Companies that misrepresent themself in their purpose statement also end up disappointing customers and investors which can give rise to accusations of purpose-washing, dilute brand value and damage reputation [20].

Must be Believable

A good purpose statement must be believable in the sense that it must be within the power of the organization to allocate resources and assess progress towards fulfilling that purpose.

Statements that are too grandiose, such as a small NGO claiming to “eliminate hunger in the world” or vague statements such as “to help make the world better” often fail the believability test and end up being uninspiring. Stakeholders then end up asking “But how?”.

For example, AT&T’s statement – “Connecting people to greater possibility – with expertise, simplicity, and inspiration” [21] scores high on the believability dimension as it aligns perfectly with AT&T’s operations in wireless communication and is well within the means of its resources.

Must be relevant to Beneficiaries

A clear purpose statement can not only clarify but also inspire desired behaviors toward its beneficiaries. But to do that, it must clearly indicate who the beneficiaries are – the segment of society (or the environment) it intends to benefit.

In a 2020 survey by PwC that covered over 2,000 CEOs, more than half the respondents (51%) failed to mention any beneficiaries (the who) in their purpose statements [22].

Statements that fail to mention beneficiaries remain all but abstract.

For example, statements such as “to improve profit, sustainable growth, and long-term stability” and “improve health and well-being” could potentially create confusion as to whose health are we talking about — is it customers, employees, the public, or another group?

A good way to avoid this is to put the beneficiaries at the forefront of the statement and reference how the organization benefits them.

For example, S&P Global’s purpose statement – “We accelerate progress in the world by providing intelligence that is essential for companies, governments and individuals to make decisions with conviction” clearly communicates the role of S&P along with the section of stakeholders it intends to serve [23].

Must be Engaging

This is the dimension of a purpose statement that lays emphasis on how it is worded.

Great purpose statements are engaging and inspiring and appeal to the heart as much as to the mind. They are crisp, impactful, and leave a lasting impression on memory. In contrast, when statements are too long, they become unclear and lose their grip on people’s attention.

For example, compare Mastercard’s:

“We work to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible, Connecting everyone to Priceless possibilities” [24]

with that of Bank of America’s:

“To help make financial lives better through the power of every connection.” [25]

While Mastercard’s statement is detailed and lays emphasis on inclusivity, safety, and accessibility, it is also lengthy and less likely to be remembered. In contrast, Bank of America’s purpose statement is concise, powerfully conveys its intent, and leaves its mark in the memory.

While there are no definite guidelines as to how a purpose statement must be worded, the following guidelines come in handy:

• A purpose statement must be inspiring – It must be aspirational, inspirational, and even poetic and must reveal the “engine” that keeps a company running.
• Must be as short and sweet as possible to aid memorability. (For example, Google’s short yet powerful – “To organize the world’s information”)
• Must have an outcome (For example, Barbie’s “To inspire the limitless potential in every girl”)
• Must create tension – a great purpose statement must unite conflicting intentions that create a space for continuous innovation and growth. For example, IKEA’s “To create a better everyday life for the many people” [26] conveys the company’s goal to make durable, sustainably made furniture (which can be expensive) but at the lowest possible cost.
• Must strike a balance between aspiration and precision. It must be aspirational but not vague, precise but not limiting and must leave room for a company to grow. For example, Lego’s “To inspire and develop the builders of tomorrow” [27]
• It should be systemic and rational but also emotional; it should resonate with members of the organization and inform their decision-making.

A purpose statement can evolve with time

Companies are not static. There are many examples of successful companies that reinvented their business. Samsung started as a company trading dried fish and groceries while Nokia started as a pulp mill.

As a company grows or the context around it changes, its purpose may need to be reframed.

For example, Tesla changed its purpose statement from “we exist to accelerate the planet’s transition to sustainable transport ” to “we exist to accelerate the planet’s transition to sustainable energy .”

Tesla’s offerings today expand beyond cars into products such as solar roofs, power-wall batteries that power homes during outages, and megapacks that stabilize renewable energy electric grids during peak power demand.

Additionally, with the shift towards stakeholder capitalism, companies are forced to redefine what success looks like and how to achieve it. With the change in the traditional mindset of maximizing value for shareholders to maximizing it for all stakeholders, companies are increasingly finding their very purpose questioned.

For example, British Petroleum (BP) has been an energy company involved in extractive industries since its founding. In 2020, BP changed its purpose to reflect its commitment to become a net-zero carbon emitter. Its purpose statement changed from “Making energy more” to “reimagining energy for people and planet” [28].

Delivering value with purpose: The 5P framework

Companies that live by their purpose radiate authenticity and do well by doing good. Leaders allocate capital and resources with purpose in mind while employees use purpose as a guiding star for decision-making. Customers, suppliers, partners, and investors in such companies recognize their value proposition.

But developing such dynamics can be hard. It requires leaders to embed purpose throughout the organization.

McKinsey & Company has proposed a five-step framework that companies can use to make purpose real, steer clear of potential vulnerabilities, and help unlock meaningful value [29]:

Called the 5Ps framework, it consists of five critical elements:

1. Portfolio strategy and products

Demonstrating purpose in the products and services requires a two-step process. First, the business portfolio must align with the company’s purpose. Second, a company must fill out its businesses with products and services that match its chosen portfolio and winnow out those that don’t.

While most companies will not have the choice of starting from a clean slate in terms of the industries and sectors, almost all can identify ways to reshape their business mix in an active, purposeful way.

For example, BP has reimagined what an energy company can be. It not only exited its petrochemicals businesses but also announced plans to shrink its legacy oil & gas businesses by 40% by 2030.

BP is on the path to scale up its low-carbon energy businesses such as bioenergy, hydrogen, and electric-vehicle charging, and to put itself on a path to become a net-zero carbon emitter by 2050 or sooner [30].

Google’s parent company, Alphabet prioritizes “freedom and focus” and in line with it, google restricts Play Store apps that promote gambling and those that offer personal loans with excessive annual percentage rates.

Likewise, toy companies are genuinely embracing diversity, equity and inclusion by learning and collaborating with identity-based communities to improve products. Mattel, the company that manufactures Barbie now offers dolls in a wide variety of body sizes, skin tones, hair textures, and ability status [31].

2. People and culture

As every purpose is about human beings, a company’s employees and its stakeholders serve as sources of strength and a hard check against inauthenticity. An organization’s purpose must align at critical points with its people and culture.

This process starts with hiring. As changing people can be hard, managers must actively screen for individuals who share values that align with the company’s purpose. Human resource decisions must be grounded in purpose and must drive people’s development and career pathways.

Mindsets and behaviors linked to company purpose must be well-articulated and “role-modeled”. Aligning with purpose is not about management saying some nice words and calling it a day. Unless it is reflected in key performance indicators (KPI), benefits are limited.

People want purpose and meaning from their work. Organizations that can genuinely satisfy this need are the ones with the most engaged employees. Passionate employees radiate enthusiasm to customers and communities alike.

Studies have shown that organizations with engaged employees achieve earnings-per-share growth that is more than four times that of their competitors [32].

3. Processes and systems

This element addresses the “how” of the business model: the operational initiatives and governance mechanisms that an organization depends upon to realize its purpose.

While some aspects of these elements are dictated by regulations and industry standards, an organization must go beyond to be the best and set an example. Embedding purpose into a company’s processes and systems requires looking beyond a firm’s four walls.

For example, Patagonia, whose purpose is “to save our home planet”, does not stop at being carbon-neutral in its own processes. Acknowledging that the bulk of its emissions (95%) comes from its supply chain and materials manufacturing, Patagonia has stood up and taken responsibility for all of it.

It holds itself accountable by setting ambitious goals across the company and its network of partners in alignment with a set of standards based on its Science Based Target Initiative (SBTi) [33].

4. Performance metrics

As only that which gets measured gets managed, it is crucial to measure purpose. This means identifying the KPIs attached to a company’s purpose, tracking them over time, and incenting employees to meet purpose targets.

Since purpose expresses what a company stands for and aspires to be, purpose metrics should extend beyond the day-to-day operations to include allocation decisions such as capital expenditures and M&A, as well as company-wide transformation initiatives.

Organizations are increasingly adopting such practices. For example, a global study that looked at the prevalence of ESG-linked pay for executives found that 38% of the listed firms followed the practice in 2021 compared to just 1% in 2011 [34].

Companies can use a range of KPIs and tools but, because every purpose is unique to an organization, off-the-shelf solutions are seldom as effective as the ones that are carefully tailored.

Companies can also go beyond monetary incentives to encourage community outreach by celebrating offices and employees who contribute measurably to the organization’s mission. Behavioral economics principles can be used to “nudge” for positive behavior, such as energy saving or waste reduction.

Sometimes, simply showing employees and other stakeholders how the organization is progressing along metrics such as diversity or sustainability reinforces the purpose and helps build momentum for more.

5. Positions and communication

A company’s purpose must be hardwired into its positions, communications, and external engagement. Artificial expressions of purpose ring false, and stakeholders recognize inauthenticity.

Sadly, In the rush to stand for something, organizations have risked putting the purpose ‘story’ ahead of the purpose plan and actions. When ‘purpose promise’ does not match the ‘purpose experience’, organizations face a real risk of reputational damage.

For example, when McDonald’s launched ‘McPlant’, its meat-free burger, critics were quick to point out McDonald’s inaction on sustainability issues and the lack of a clear link between the launch of ‘McPlant’ and its current sustainability plan.

McDonald’s has been years behind competitors like White Castle and Burger King in fully introducing plant-based burger options [35].

Purpose-washing: The dangers and how to avoid it

Companies today are in a rush to match their core purpose with the values of society, such as inclusion, fairness, and respect and have become more outspoken about environmental and social issues.

Customers, employees, investors, and communities are increasingly expecting businesses to express a clear and public position on issues that matter to them.

Unfortunately, such highly visible pledges of purpose commitment have, paradoxically, also resulted in public concern and backlash. 56% of people now believe that purpose-driven marketing is a way for firms to promote their goods, rather than a real commitment to solve social or environmental problems [36].

What is purpose-washing

When an organization’s purpose statement is communicated to external stakeholders, a lack of perceived authenticity can easily escalate into accusations of purpose-washing – a term that combines the concepts of greenwashing and woke-washing.

Greenwashing refers to companies portraying themselves as environmentally conscious even though their actions do not align with their claims. Woke-washing is an accusation that arises when companies claim to care about socio-political issues, but stakeholders believe they do not.

In both cases, claims that are based on a broader purpose that goes beyond economic profit maximization are not perceived as consistent with actions.

Examples of companies accused of purpose-washing

The below table gives an overview of companies in different industries that have faced accusations of purpose-washing for varied reasons:

Source: Purpose-washing: What it is, and how to avoid it, King’s Business School [36]

Numerous companies across industries have come under fire for misalignment between their stated purposes and actual behavior for a variety of reasons and to different degrees.

Staying clear of purpose-washing

In addition to the obvious ethical concerns, negative consequences of purpose-washing include a decrease in trust, damaged reputation, and substantive financial losses. When organizations take a public stance based on their purpose, they join a broader public conversation on the topic.

According to research by Paul A. Argenti, professor of corporate communication at Dartmouth College’s Tuck School of Business [45], there are three considerations that managers must bear in mind when they speak in public or take a stand on matters related to their purpose:

Does the issue align with the organization’s strategy?

An organization’s strategy is based in part on the company’s mission and values. If there is a misalignment with the issue being spoken out on, such statements will be viewed as inauthentic.

Can the organization meaningfully influence the issue?

If the organization does not have the expertise and resources to make a difference or is not willing to commit financial resources towards the cause, then the organization risks being seen as hypocritical or being accused of “woke-washing.”

Will the constituencies agree with speaking out?

Every organization works with constituencies – distinct groups or entities that have a stake or interest in the organization’s decisions and actions. (e.g., customers, investors, employees, etc.). If the key constituencies agree with the position taken by the organization, then the risk of disrupting future business is greatly reduced. However, when these constituencies disagree, it becomes crucial to discuss and carefully weigh the position based on relative importance to business.

If a company meets all the above conditions, it can join or even initiate a public conversation around its purpose without the risk of being accused of purpose-washing. However, if only two of the conditions are met, it is better to wait and join the debate later rather than acting as a conversation starter.

When just one condition is met, it is critical to keep track of the situation and determine

whether and when it is suitable to voice a stance. If none of the conditions are met, the company should refrain from commenting on the matter.

Initiating effective purpose-driven campaigns

Once an organization decides to take a public stance, three guiding principles are important.

First, it must carefully consider how to communicate its commitment in a meaningful manner. It is insufficient to merely issue campaigns and merchandise relating to their purpose as the perception of authenticity relies strongly on stakeholders correctly interpreting the alignment of the stated purpose with the company’s practice.

Second, the stance must be unambiguous. Research indicates that staying neutral and thus not taking a clear stance, can lead to a lack of perceived authenticity [46]. While striving for fair representation is vital, it is also critical that a company’s stance is clear, well-thought-out and displays a real commitment to its principles.

Finally, the message must be consistent for it enhances authenticity.

Thus, purpose can be a source of powerful competitive advantage, but only when it is genuine and infused into an organization’s business model.

Read also: Mission Statement

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28. “Presentation – Bernard Looney”. BP, https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/investors/2q-strategy-2020-bernard-looney-strategy-overview.pdf . Accessed 08 Apr 2024.

29. “More than a mission statement: How the 5Ps embed purpose to deliver value”. McKinsey & Company, https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/more-than-a-mission-statement-how-the-5ps-embed-purpose-to-deliver-value . Accessed 08 Apr 2024.

30. “Insight: Inside BP’s plan to reset renewables as oil and gas boom”. Reuters, https://www.reuters.com/business/sustainable-business/inside-bps-plan-reset-renewables-oil-gas-boom-2023-03-07/ . Accessed 08 Apr 2024.

31. “She’s a Barbie girl, in a new world”. Mashable, https://mashable.com/feature/barbie-diverse-inclusive . Accessed 08 Apr 2024.

32. “The Power Of Purpose: The Business Case For Purpose (All The Data You Were Looking For Pt 2)”. Forbes, https://www.forbes.com/sites/afdhelaziz/2020/03/07/the-power-of-purpose-the-business-case-for-purpose-all-the-data-you-were-looking-for-pt-2/ . Accessed 08 Apr 2024.

33. “The Climate Crisis Is Our Business”. Patagonia, https://www.patagonia.com/climate-goals/ . Accessed 08 Apr 2024.

34. “Executive Compensation Tied to ESG Performance: International Evidence”. SHIRA COHEN, IGOR KADACH, GAIZKA ORMAZABAL, STEFAN REICHELSTEIN, https://onlinelibrary.wiley.com/doi/full/10.1111/1475-679X.12481 . Accessed 08 Apr 2024.

35. “Hold the beef: McDonald’s avoids the bold step it must take to cut emissions”. Guardian, https://www.theguardian.com/environment/2021/dec/10/mcdonalds-emissions-beef-burgers . Accessed 08 Apr 2024.

36. “Purpose-washing: What it is, and how to avoid it”. KING’S BUSINESS SCHOOL, https://www.kcl.ac.uk/business/assets/research/literature-review-purpose-washing.pdf . Accessed 08 Apr 2024.

37. “Munroe Bergdorf accuses L’Oréal of racial hypocrisy”. The Guardian, https://www.theguardian.com/fashion/2020/jun/02/munroe-bergdorf-accuses-loreal-of-racial-hypocrisy . Accessed 07 Apr 2024.

38. “H&M Apologizes for ‘Monkey’ Image Featuring Black Child”. The New York Times, https://www.nytimes.com/2018/01/08/business/hm-monkey.html . Accessed 06 Apr 2024.

39. “What Was the Dieselgate Scandal?”. International Environmental Technology, https://www.envirotech-online.com/news/air-monitoring/6/international-environmental-technology/what-was-the-dieselgate-scandal/59471 . Accessed 06 Apr 2024.

40. “This article is more than 5 years old Stonewall and Primark criticised for Pride T-shirts made in Turkey”. The Guardian, https://www.theguardian.com/world/2018/aug/02/stonewall-and-primark-criticised-pride-t-shirts-made-in-turkey-lgbt-rights . Accessed 08 Apr 2024.

41. “The Starbucks Anti-Pride Controversy, Explained”. Bon Appetit, https://www.bonappetit.com/story/starbucks-anti-pride-controversy . Accessed 08 Apr 2024.

42. “6 months later: Activist marketing takeaways from Nike, Ben & Jerry’s calls for racial justice”. Marketing Dive, https://www.marketingdive.com/news/6-months-later-activist-marketing-takeaways-from-nike-ben-jerrys/591421/ . Accessed 08 Apr 2024.

43. “Why Audi’s Super Bowl Ad Failed”. Forbes, https://www.forbes.com/sites/jeffkauflin/2017/02/06/why-audis-super-bowl-ad-failed/ . Accessed 08 Apr 2024.

44. “How M&M’s Became the Latest Flash Point in the Culture Wars”. Time, https://time.com/6249551/m-m-candy-mascots-culture-wars/ . Accessed 08 Apr 2024.

45. “When Should Your Company Speak Up About a Social Issue?”. Harvard Business Review, https://hbr.org/2020/10/when-should-your-company-speak-up-about-a-social-issue . Accessed 08 Apr 2024.

46. “Woke brand activism authenticity or the lack of it”. Abas Mirzaei, Dean Wilkie and Helen Siuki , https://www.researchgate.net/publication/355082665_Woke_brand_activism_authenticity_or_the_lack_of_it . Accessed 07 Apr 2024.

47. “Your Corporate Purpose Changed. Has Your Strategy Kept Up?”. Harvard Business Review, https://hbr.org/2022/07/your-corporate-purpose-changed-has-your-strategy-kept-up . Accessed 07 Apr 2024.

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How to Write a Business Purpose Statement

by Danielle Smyth

Published on 22 Jan 2019

A business purpose statement is an essential part of forming a new business. In some states, it is even a legally required aspect of your business filing. Whether mandatory or not, having a business purpose statement can help you to identify your mission, define your goals and ultimately find the success you crave.

Writing a business purpose statement comes down to answering one important question: why is your company in business?

What Does Business Purpose Mean?

Business purpose differs from mission or vision in that it illustrates the organization’s impact on customers. The purpose of your company is to provide a certain service or product to your clients. The statement of purpose should, therefore, illustrate how you will improve the lives of those you serve. Not only is a business purpose statement a good thing to have, but it can also provide a competitive advantage over companies without such a statement. Also, the purpose can be used as a guide to dictate company actions. If a certain decision does not align with the business’s statement of purpose, it shouldn’t be acted on.

To write a business purpose statement, you need to be able to answer one important question: why is your company in business? If you are forming an LLC, it is required by law that you provide a statement of purpose. For many other business structures, it is still advisable that you have a documented statement of this kind, whether required or not.

A business purpose statement should be short, at just one to a few sentences. While it should be specific to the type of work you plan to do, you should also leave some room for ambiguity to provide your company room to grow and develop over time. Depending on your jurisdiction, statements that are too vague may not be accepted for business filing purposes.

Vision vs. Mission vs. Purpose

Mission, vision, purpose – what’s the difference? Your mission statement should define your company’s objective and its approach to reach these goals. Vision, on the other hand, describes your business’s goals for the future and outlines how you will get there. Meanwhile, a statement of purpose explains the type of work you do and how it will benefit your customers. These distinctions are minor, but it’s important to have a clearly defined vision, mission and purpose as a business owner.

How to Write a Business Mission Statement

To write an effective business mission statement, you must be able to articulate your company’s strategy. A mission statement should concisely answer four questions, as follows:

• What does my company do? 
• How do we do it? 
• Who do we provide this service for? 
• What value do we provide? 

Even if you are a solo entrepreneur or run a small, seemingly self-explanatory business, you should develop a mission statement to provide a framework for running your company.

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What Makes a Great Corporate Purpose Statement

• Catherine Bailey,
• Catherine Tilley,
• Anna Lelia Sandoghdar

A five-part framework for leaders.

Having a well-crafted purpose statement really matters. Not only does it represent the organization’s aspirations, it also sends signals to employees about what the company stands for. It is the vital first step on the road to actually embedding and activating an authentic purpose. Yet leaders often struggle to articulate an appropriate and inspiring purpose statement due to a lack of guidance concerning the focus, scope, and form of expression they should aim for. The authors conducted a detailed analysis of purpose statements from leading organizations around the world and developed a diagnostic framework leaders can use to help craft the best purpose statement for their specific situation.

Organizations in all sectors are increasingly required by their investors, customers, employees, and wider stakeholders to articulate a clear statement of corporate purpose. Purpose isn’t about profit maximization; it’s the reason the organization exists.

• CB Catherine Bailey is a professor of work and employment and founder and director of the Meaning and Purpose Network ( MaPNet ) at King’s College London, whose purpose is “to help create more ethical, inclusive, and sustainable futures for organizations through partnership and knowledge sharing.”
• CT Catherine Tilley is a lecturer in business ethics and sustainability and impact director at the Centre for Sustainable Business at King’s College London. She is a member of the Meaning and Purpose Network Management Team and worked in management consultancy for over 20 years (mostly at McKinsey & Company), focusing on strategic and organizational issues.
• AS Anna Lelia Sandoghdar is a PhD student in organizational purpose at King’s College London where she is also a research assistant for the Meaning and Purpose Network.

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How to Write a Statement of Purpose | Example

Published on February 13, 2019 by Shona McCombes . Revised on June 1, 2023.

When you apply for graduate programs or scholarships, the admissions committee is looking for more than just a list of grades. The statement of purpose (also known as a statement of intent or motivation letter) is your chance to stand out from the crowd and showcase your motivation, skills and potential. It should:

• Outline your academic or professional interests and goals
• Discuss relevant skills, experience and achievements
• Demonstrate why you’d be a good fit for the program

Table of contents

Successful statement of purpose example, requirements and prompts, personal introduction, experience and achievements, goals and motivations, fit with the program, tips for an effective statement of purpose, other interesting articles.

The torment of the Founding Fathers is responsible for my interest in Classics. My desire to learn Latin stemmed from reading American Revolutionary-era history during junior high and high school, and particularly from the countless Latin quotations I found in John Adams’ writings. Always eager for a challenge, I was intrigued by the American founders’ accounts of the torture of learning such a difficult language. In my first semester at university, I started learning Latin and thoroughly loved it. As I learned more and more about classical civilization through the language, I realized that I was passionately interested in many aspects of the field of Classics. I have since taken courses on mythology, art and archaeology, and religion, on ancient history, and on the classical tradition. I have also learned Greek, of course, starting with an intensive two-semester course at the university’s summer school. My experience studying abroad in Florence and traveling through Italy and Greece intensified my zeal for the field and, in particular, fueled my ambition to specialize in classical archaeology.

My personal philosophy of life is that everything is connected, and this conviction drives my desire to study Classics. The most rewarding moments for me are discovering and investigating connections – both broad ones, between fields and disciplines, and more specific ones, like the relationship between a piece of literature and an object of material culture. My liberal arts education has equipped me with a broad base of knowledge in the sciences, social sciences, humanities, and arts, and in the honors program I pursued independent projects exploring academic and personal connections, including a paper on ancient Mayan astronomy, a self-observation study on the effects of nutrition and hydration on exercise performance, and a paper on the influence of political context on the changing artistic representations of John Adams. By seeking out connections between seemingly unrelated areas of academia, I have acquired a well-rounded outlook which helps me approach new ideas with both a range of prior experiences and a mind always open to different interpretations.

In accordance with my personal philosophy, I have also continued to explore connections within Classics and between Classics and other fields. In 2007, I published an article in my university’s undergraduate humanities journal; inspired by my studies in Florence, I compared representations of the birth of Venus in ancient and Renaissance literature and art. My major academic achievement to date, however, has been my senior honor thesis on John Adams’ connection to the Classics. Funded by a Hilldale Research Fellowship, I conducted research in the Adams Papers at the Massachusetts Historical Society and in John Adams’ personal library at the Boston Public Library on the influence of the classical tradition on Adams’ worldview and how he consciously modeled himself on classical ideals. It was particularly fulfilling to connect historical and classical research in writing about the figure most responsible for instigating my study of the Classics.

As well as my research skills, I have demonstrated proficiency in the classical languages, winning prizes for both Latin and Greek translation from the Classics Department, as well as receiving an enthusiastic nomination from the department for the Pearson Fellowship from the American Philological Association. I am also the president of the undergraduate Classics Society, which allows me to share my enthusiasm for Classics with other students and the larger community.

One of the most appealing aspects of studying Classics is the vast range of topics encompassed by the field. Because my interests are broad and I value an interdisciplinary approach, I would like to pursue graduate study ultimately leading to a PhD in Classical Archaeology. Archaeology in itself is, of course, a multi-faceted field, requiring knowledge of history, language, anthropology, and various scientific and technological methods. I have already started building my skills in this area: I participated in a microartifact analysis from the excavation of a Maya site in Belize as part of an honors project, and this summer I will take part in two archaeological projects in Turkey after working as a research assistant on related material in the spring semester. This PhD program includes many other opportunities I am eager to explore, such as palaeography and papyrology courses, and especially the variety of fieldwork and museum experiences available. I believe that my strong background in the classical languages and wide range of courses on classical civilization and archaeological methods have prepared me well for this program, and I am convinced that, guided by my philosophy of interconnectedness, I will flourish in this program.

The first step is to read the application instructions. These should include the length of the document (usually 1-2 pages), any formatting requirements, and often a question or prompt that indicates what you should focus on.

In some cases, you might also be asked to submit a personal statement . Similar advice applies to both of these documents—both should give a sense of who you are, what you’ve done and what you want to do. But a statement of purpose is often more formal, tightly focused on your academic background and your suitability for the program.

If you are working on multiple applications, don’t try to write a one-size-fits-all text—tailor your statement of purpose to each program. Make sure to respond to the prompt and include all the information you’re asked for. A typical statement of purpose prompt looks like this:

Your focus will be slightly different depending on whether you’re applying for research-based academic programs (such as a PhD ) or professional qualifications (such as an MBA). But all statements of purpose should contain the following elements.

This is your chance to introduce yourself to the admissions committee and let them hear your voice. The statement of purpose shouldn’t tell your life story, but it should give a glimpse into who you are.

Academic and personal background

Give an overview of your academic background, and show what drives your interest in this field or profession. You might want to include some personal background too—your family history, social circumstances, personal relationships and life experiences have all shaped your trajectory and perspective. What unique insights will you bring with you?

Characteristics and personality

Think about aspects of your character that make you well-suited for graduate school. Don’t just list generic adjectives—give examples that demonstrate your strengths and show why they’re relevant.

• Are you organized enough to handle a high-pressure workload?
• Do you have the creativity needed to develop original ideas, or a systematic mindset perfect for problem-solving?
• Do you have strong leadership skills, or are you great at working collaboratively?

Avoid including irrelevant autobiographical detail in the statement of purpose. Everything you include should be aimed at showing why you’d be a strong candidate for the program.

Your experience shows that you have the necessary skills to succeed in graduate school. Don’t just summarize everything you’ve done—pick out some highlights to build a clear picture of your strengths and priorities, illustrating how you’ve learned and developed along the way.

Academic experience

If you’re applying for a research-focused program, such as a PhD, show your knowledge of the field and outline your research experience. This might include:

• A brief summary of your thesis or final project
• Courses that you found particularly valuable
• Projects you contributed to
• Publications
• Presentations
• Extracurriculars that gave you relevant skills or experience

Professional experience

If you’re applying for a professional program, such as an MBA, outline your experience so far and show how it relates to your career plans. This might include:

• Past or current job roles
• Projects you led or participated in
• Internships
• Voluntary work
• Training courses

In all cases, give specific examples with details of what you worked on, what you achieved, and what you got out of the experience.

As well as showing that you’re prepared for the program, explain what you expect to get out of it. What are your motivations for applying? How do you plan to make the most of its opportunities, and how will it help you achieve your goals?

Academic motivations

For academic programs, indicate your research interests, showing how they follow from and build upon what you have studied so far. This might include:

• A subfield that you want to strengthen your expertise in
• A specific problem or question that you’d like to address
• An initial idea for a research project
• A theoretical or methodological approach that you want to develop

This isn’t the place for an in-depth research plan, but it’s a chance to show your enthusiasm and knowledge of your field.

Professional motivations

For professional programs, outline your career aspirations and show how your experience informs your goals. This might include:

• The next step you want to take in your career. What position are you aiming for and how will the program help you achieve it?
• Your motivations for a career change. Can you make a link between your previous experience and your new direction?
• Your long-term goals. Where do you want to be in five or ten years, and how do you see yourself getting there?

The admissions committee wants to know that you’re genuinely motivated to complete the program, and the clearer your plans, the more convincing your commitment.

It’s important to show not only why you want to study this subject, but also why you want to do it in this particular institution and department.

• Do your research, and mention particular classes, specialisms or faculty that attracted you.
• Show why you’re a good fit. Do your priorities align with the values and culture of the institution? What will you contribute to the department?
• Discuss the specific skills, knowledge and experience you expect to get from the program.

The statement of purpose isn’t only about selling yourself—it’s about illustrating an ideal match between you and the program.

Once you’ve made sure to cover all the key elements, you can work on strengthening and polishing the text. Follow these tips to make your application the best it can be.

Stay focused

It can be tempting to try to cram in everything you’ve done, but a good statement of purpose requires careful selection to craft a focused narrative. One way to do this is by building your text around a central theme—for example, a character trait, an intellectual interest, or a career goal.

This strategy helps structure your text and puts your priorities centre stage. Link each paragraph back to the central idea, making it clear how everything fits together.

Think about your structure

The structure of a statement of purpose is somewhat flexible, as long as you include all the relevant information in an order that makes sense.

For example, you might start with a chronological story of where your interests began, or you might open with your goals and then select a series of examples that show your capacity to achieve them. If you’re desperate to study in this specific program, you could lead with a summary of why it’s your ideal choice, and then elaborate on each aspect to show why you’re a perfect fit.

The important thing is that the text showcases your strengths and motivations in a compelling, coherent way. As in any other piece of academic writing, make sure each paragraph communicates one main idea, and that each sentence flows smoothly and logically from the last. Use transition words and topic sentences to move between paragraphs.

Add meaning to your resume

The bare facts of your achievements—grades, prizes, work experience—are already included in your graduate school resume and transcripts. Use the statement of purpose not to repeat yourself, but to add personal meaning and texture to these facts.

If you got top marks for your thesis, describe the research process and demonstrate your enthusiasm for the topic. If you completed an internship or participated in a project, explain what new skills you learned and which aspects you found most valuable. If you already have lots of experience in the field, show how each step developed your skills and shaped your current plans.

Revise, edit, proofread

Your statement of purpose isn’t only about the content—it’s also a chance to show that you can express yourself fluently, confidently and coherently in writing. Spend plenty of time revising, editing and proofreading your text before you submit.

Make sure you stay within the recommended length, and check if there are any specific formatting requirements. If not, use a standard 12pt font, 1-inch margins and 1.5 line spacing.

When you have a final draft, our professional statement of purpose proofreading service can offer an extra pair of eyes to make sure every sentence is perfect.

Proofread my statement of purpose

Checklist: Statement of purpose

My statement of purpose clearly responds to the prompt.

I have introduced my academic, professional and/or personal background.

I have described any relevant experience and shown my development over time.

I have highlighted key achievements that demonstrate my talents.

There is a clear connection between my previous experience and my future plans.

I have explained how the program will help me achieve my goals.

I have mentioned specific aspects of the program, department and institution that appeal to me.

Every paragraph focuses on one central idea.

The paragraphs are organized in a logical order and tell a clear, coherent story.

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Statements of Purpose for Businesses

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A statement of purpose is an integral component of your small business's overall strategic operation plan. This document contains your company's core philosophy and values, from which you measure the worth of all business decisions and strategies. Crafting an understandable and attainable statement of purpose helps you and your management team to create policies and measure the success of your company as a whole.

Statement of Purpose Definition

The statement of purpose for your small business defines your company's core goals and purpose. According to Web Marketing Today, an Internet marketing website, the statement also forms the basis for your small business's brand and the promises your company intends to make to consumers. A statement of purpose isn't as broad as a mission statement, which seeks to incorporate business strategies and procedures into the document. Instead, a statement of purpose focuses primarily on the short message that will guide your company in formulating its business practices and procedures, without spelling out what those methods will look like when your business opens its doors.

Avoid Vague Statements

Just because your small business's statement of purpose doesn't include your company's plans for business operations, doesn't mean you should be vague in crafting its language. Your company's statement of purpose shouldn't simply be "make money." The statement of purpose should describe the way in which your small business wants to become successful while carving out a place in the local business community. Focusing the statement with specific language can help your management team come up with strategies and methods to accomplish the goals your statement of purpose sets.

Think About Customer Need

Thinking about the needs your small business is fulfilling for customers can help you craft a statement of purpose that positions your company strategically, as opposed to functionally, according to Web Marketing Today. This allows your mission statement to transcend just creating products and instead focus on providing services for customers. A statement of purpose focused on function allows your business the flexibility to meet consumer needs regardless of the products your company currently offers for sale.

Creating Attainable Goals

An unattainable ideal, including the pursuit of perfection, doesn't make for a good statement of purpose because your employees and management team can't adequately judge if its practices are working towards that goal. It's perfectly acceptable to create a lofty goal for your small business, but this goal should also be within the realm of possibility. This allows your management personnel to gauge the worthiness of proposed business plans and the success of current business strategies.

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Jonathan Lister has been a writer and content marketer since 2003. His latest book publication, "Bullet, a Demos City Novel" is forthcoming from J Taylor Publishing in June 2014. He holds a Bachelor of Arts in English from Shippensburg University and a Master of Fine Arts in writing and poetics from Naropa University.

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What Is a Business Plan?

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Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

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Business Purpose Statement

Ai generator.

What do companies like Nike, Adidas, New Balance, and Puma just to name a few, have in common? Apart from the fact that they are huge, very well known companies, and they are also shoe companies, the common thing they all have is the fact they have their own purpose statement . You may wonder what a business purpose statement is about and why do you need them to begin with? When you think of doing business, you know for a fact that you will also need a purpose statement. Business purpose statements are what people often associate your company with. So when you think of starting out a business, think of a business purpose statement too.

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What Is a Business Purpose Statement?

A business purpose statement as the term suggests, is often described as a single statement that describes or conveys what your business is about. It does not only describe what your business is about, but it also describes the very reason for starting up the business. In addition to that, a business purpose statement also gives the customer a general overview or a general idea of what the products or services your business is offering. Just as how a mission statement is used when starting out an educational business. Starting a business without a purpose statement has little to no chance of success. Purpose statements are there to explain to future customers what your business is about, especially if the name of your business is not as clear or well known. 

How to Create a Business Purpose Statement

Creating a business purpose statement is an important factor in your business. Whether it is in the form of continuity or a new business. We know for a fact that a business purpose statement is and how useful it is. To make a business purpose statement, there are things you need to take into consideration. With that, here are steps you should take to create a business purpose statement.

Step 1: Do Some Brainstorming about Your Business

The first and most basic thing you can do is to brainstorm some ideas on how you can approach this business purpose statement. From these guided questions, you are able to think of the kind of business purpose statement you will be writing about. “What should your customers expect?” “What products or services are you offering?”

Step 2: Create a Draft for Your Business Purpose Statement

From the guided questions in the first step, you are now ready to create a draft for your business statement. The draft helps in outlining how you want your business statement to look like and how it will affect your overall business statement.

Step 3: Make a Short Description

Make a short description of what your customers or future clients will expect from your business. The purpose statement does not only mean that it states your vision and mission statement, but it also states what your business is about, how you plan on solving future issues with your customers, what products and services you offer, and what makes your business stand out from your competitors.

Step 4: Be Open for Changes and Feedback

The last step is to be open for changes in your business statement . Never assume that your business statement may not go through a lot of changes. Always be prepared for other business statements you can use for the business.

What are other types of statements?

The other types of statements are as follows:

• Business statement
• Income statement
• Financial statement
• Mission statement

How do you define a business purpose statement?

A business purpose statement is a tool, a document, or a short description of what your business is, the nature of your business and of course the services and products you provide. This short and simple statement carries a lot of weight depending on the information or details you are sharing to your future clients.

Why do you need a business purpose?

In starting up businesses, you will always expect a reason to start one. The business purpose helps in aligning what you want and what you expect in your business.

So what do companies or businesses like the most common and famous businesses have in common? You know by now it’s the business purpose statements that make them what they are now. In order to stand out from competitors, make your business purpose statement as unique as your statement.

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How To Write A Purpose Statement With Examples

Words can motivate us in the worst of times. Many of us have inspiring quotes and notes stuck on our…

Words can motivate us in the worst of times. Many of us have inspiring quotes and notes stuck on our walls, shelves and even the bathroom mirror. They help us when we’re feeling down. These words inspire us to take charge of the day.

But most of all, these words of wisdom from some of the finest people in the world remind us of our purpose. Our purpose is the reason we are what we are or do what we do. You wake up in the morning, power on your laptop and get to work. Why? It’s because you want to make a living, you want career success and you want to grow as a professional.

Maybe you decide to start your own bakery. Why? You’re a great baker and your decadent creations bring joy to others. That’s your purpose. So, how do you put this into words that you can come back to? You write a purpose statement.

What Is A Purpose Statement

How to write purpose statement.

The following sections will discuss examples of purpose statements and how to write purpose statement.

What Is A Purpose Statement?

A purpose statement defines the ‘why’ behind your actions in a few crisp words. You don’t have to write passages on it. Most purpose statement samples are a single line, which does the trick. Many organizations add a purpose statement to their business plan. This is helpful for investors, customers, employees and clients to understand why the organization started doing business in the first place. Employees find the purpose statement inspiring because it explains what resides at the heart of their organization. What drives them forward and encourages them to achieve their goals.

Here are some excellent purpose statement samples:

“At Netflix, we want to entertain the world”

“To inspire and develop the builds of tomorrow”

 “To empower every person and organization on this planet to achieve more”

Penguin Random House: 

“To ignite a universal passion for reading”

“To organize the world’s information and make it universally accessible and useful”

Each of these purpose statement samples is unique and speaks to the essence of the organization. You can instantly recognize the brand by their words. That’s how effective your statement needs to be. Purpose statement samples need to address the ‘why’. For instance, most of us grew up reading books published by Penguin Random House, a well-known publishing house.. Why they’re in the business of publishing is to encourage people to read, and they’re doing just that.

Some of the best purpose statements you’ll come across are one-liners. If you can contain your idea, your reason for being and your passion in a few words, people will also be quick to warm to it. You can create a purpose statement for your own needs—to remind yourself why you started. Here’s how to write purpose statement whether for personal or professional needs:

Think about why you have certain goals and explain your reasons without worrying about the word limit

Write down what you hope to achieve with your actions—be it to inspire change with your words or build a community

Give reasons that set you apart from others, make it unique to you and your purpose

Avoid generic statements that can apply to not just your business but also a million others

Be as detailed and specific as possible so the reader knows exactly what you’re trying to say

Once you’ve figured out these elements, you’ll find it easier to write a purpose statement that’s impactful. Purpose statement samples will give you an idea of how you should go about it. Read up on successful businesses, what they do, why and how they do it to understand their motivation and inspiration. Learning from other examples of purpose statements will help you in your own endeavors. You never know, you may even pick up a skill or two!

Examples of purpose statements are a part of business communication. You’re informing your clients or employees of your purpose. At the same time, you have to account for others who may be affected by your actions. This includes the environmental impact and how your business might affect local communities.

Learning how to write purpose statement will help you in your business goals. Harappa’s Writing Proficiently course includes frameworks and key concepts like the GRT (Goal-Recipient-Tone). Learn how to write succinctly, clearly and compellingly with important tips from our expert faculty. You can practice and practice some more to master the important art of writing well.

Explore Harappa Diaries to learn more about topics such as Meaning Of  Purpose Statements , What Is  Ikigai , Setting  Realistic Goals  and How To  Achieve Goals  to become a well-rounded professional.

More than a mission statement: How the 5Ps embed purpose to deliver value

We’ve all seen it: companies that have the “it” factor, an enthusiasm and passion that lights up employees, delights customers, and shines for investors. It’s not just the company’s warmer fleece, or a more delicious ice cream, or even a breakthrough technology. And it’s so much more than just a mission statement. It’s purpose. Purpose answers the question, “What would the world lose if your company disappeared?” It defines a company’s core reason for being and its resulting positive impact on the world. Winning companies are driven by purpose, reach higher for it, and achieve more because of it. Competitors wonder where they can get some of that magic and how they might sprinkle it on.

About the authors

This article was a collaborative, global effort among Sebastian Leape, Jinchen Zou,  Olivia Loadwick , Robin Nuttall ,  Matt Stone , and Bruce Simpson .

If that’s your expectation—that purpose can be added easily to your mix—get ready to be disappointed. A superficial approach to purpose doesn’t work. In fact, it can do considerable harm, opening up your company to accusations of inauthenticity or “purpose-washing,” turning off customers or driving them away completely, and disaffecting employees up and down your organization. Poor outcomes follow when purpose is a patch job.

Yet the positive corollary also holds: companies with a genuine, lived purpose radiate authenticity and do well by doing good. Customers, suppliers, partners, and investors recognize the value proposition. Senior leaders allocate capital and resources with purpose in mind. And employees think about purpose all the way, making it a part of their decision making as a matter of course. Building those dynamics doesn’t come easily. It requires leaders to embed purpose throughout the organization. As we’ve described before , purpose must connect with your company’s “superpower”—its unique ability to create value. Purpose is not the same as ESG (see sidebar, “Purpose, ESG, and the 5Ps”). Purpose is your company’s raison d’être .

In this article, we describe a framework that organizations can use to make purpose real, steer clear of potential vulnerabilities or blowback, and help unlock meaningful value. We call this framework the 5Ps.

A framework for purpose: The 5Ps

It’s relatively easy to develop a mission statement or kick off a purpose initiative. Most organizations have sought to define their purpose at some point or other, and many think it important to ensure that the company’s purpose is embedded in everything it does. But leaders also know that’s not easy. Perhaps that’s why companies announce purpose changes so often. “We’ve had so many purpose initiatives,” one European group CEO told us, that “at this point, they just wash over me.” A useful analog is transformations; about 70 percent  of them fail to reach their stated goals, in large measure because they fail to change—and sometimes fail to even think of changing—the mindsets and behaviors of employees. Purpose should be systemic and rational, but also emotional; it should resonate with members of your organization and inform their decision making. Five major elements are critical:

• Portfolio strategy and products: the products and services your organization provides, and the “where to play” and “how to play” choices you make to best serve your customers
• People and culture: the talent—and the talent management—your firm deploys
• Processes and systems: the operational processes you adapt to meet purpose-related targets; the ways you ensure that behavior up and down your value chain is in line with your purpose
• Performance metrics: the target metrics and incentives you use to measure what you wish to achieve, how your firm is progressing, and the way you create and distribute incentives to make your organization’s purpose tangible
• Positions and engagement: how you align your external positions and affiliations to be consistent with, and consistently deliver on, the purpose your company has defined

These elements are depicted in the exhibit below.

These five levers consistently elevate purpose over the long term, but they must be regularly, and rigorously, adjusted over time. Don’t kid yourself; there may be uncomfortable decisions to make, and often hard trade-offs as well. In every case, start by understanding the sources of your company’s strength, and address the areas in which it is vulnerable. Then, build out your purpose infrastructure in a programmatic way.

1. Portfolio strategy and products

Demonstrating purpose in the products and services you offer is a two-step process. First, make sure that your business portfolio aligns with your company’s purpose. While most companies will not, of course, be able to start from a clean slate in terms of the industries and sectors in which they compete, almost all can identify ways to reshape their business mix in an active, purposeful way. Second, once you have chosen your portfolio, fill out its businesses with products and services that match your company’s purpose, and winnow out those that don’t. Fight the tendency to approach purpose with a “this is the hand I’ve been dealt” resignation. Of course your company’s endowment matters, but you have greater freedom than you might expect to choose what your company does and how it can make a positive difference.

Consider bp. The former British Petroleum has been an energy company since its founding, over a century ago, operating in extractive industries around the world. Yet that legacy has not constrained bp from reimagining what an energy company can be. The firm has pivoted sharply, adopting as its purpose “reimagining energy for people and planet”; it has not only exited its petrochemicals businesses but also announced a plan to shrink its legacy oil and gas businesses by 40 percent by 2030, to scale up its low-carbon energy businesses (such as bioenergy, hydrogen, and electric-vehicle charging) significantly, and to put itself on a path to become a net-zero carbon emitter by 2050 or sooner.

Fight the tendency to approach purpose with a “this is the hand I’ve been dealt” resignation. You have greater freedom than you might expect to choose what your company does and how it can make a difference.

In fact, there is ample precedent for bold, purpose-based portfolio shifts. For example, DSM (Dutch State Mines), a Netherlands-based company, was originally incorporated to mine coal and, over a century, evolved into one of Europe’s largest bulk chemicals companies. But, by going deep on purpose and insisting on a “triple bottom line” of people, planet, and profit, DSM showed that it could set a radically different course. From 2001 to 2015, the company not only divested from businesses such as petrochemicals and ammonia but also made more than 25 acquisitions in food, feed, and nutrition, among other business lines, transforming itself into an innovative specialty-chemicals leader.

Purpose, ESG, and the 5Ps

What’s the difference between purpose and ESG—and how do the 5Ps fit in?

A useful framing, we find, is to compare the breadth of ESG with the uniqueness of purpose. ESG encompasses society’s wide range of expectations about the role of business. There are a multitude of ESG options, requirements, and variations—from community service to inclusivity, transparency in reporting, and waste management, to name just a few. Purpose, on the other hand, helps your firm prioritize from among all the things it can (and sometimes must) do in ESG. It directs you toward the areas where you want to “win” as opposed to the areas where you want to “play”—that is, where you can meet the societal bar but, for want of time and resources, can go no higher, at least for now.

Once you’ve determined which ESG initiatives are your “musts,” the next step is to embed them in your organization. The 5Ps can serve as a practical checklist. Consider governance. Effective governance can strengthen an organization’s bond with its people and culture (for example, through employee safety and nondiscriminatory hiring and promotion); enforce principles and standards about portfolio strategy and products (such as product-safety guidelines and the effects of those products on society and the planet); help processes and systems work to best effect (ensuring, for example, that suppliers are accountable); and assure that performance metrics and positions and communications are true and transparent. Good governance may also provide the impetus for a company to form or reconstitute as a public-benefit corporation, or seek B-Corp certification .

When leaders actively seek to embed purpose throughout their organizations, ESG feels less like a cost of doing business and more like a source of competitive advantage . That comes from your purpose being authentic and infused throughout your organization, not forced or tacked on.

S&P Global offers another illustration: to meet its purpose of accelerating progress in the world by providing intelligence that is essential for companies, governments, and individuals to make decisions with conviction, it shifted from a wider range of more generalized information and publishing businesses to a focus on research and analytics. Over a decade of change, it remained an information company, but it transformed itself into a different kind of information company—and a manifestly more purposeful one, seeking to meet the information needs of its stakeholders and broader society.

Creating value for all of your stakeholders by having a positive social impact is a bold decision and can require hard choices, such as CVS’s decision in 2014 to remove tobacco products from its pharmacies. But, as our research has shown, strategic fortune—measured across industries, and considered in the aggregate— favors the bold . In fact, companies that keep a static portfolio serially underperform .

Few companies have embedded purpose as thoroughly as Patagonia does. The California-based outdoor-equipment and -clothing business has always been purpose driven; it was the first company in its state to become a benefit corporation (a corporate form that enables directors as a matter of law to extend their duty of loyalty beyond shareholders), and is also a certified B Corp . For decades, Patagonia’s mission had been “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Yet in late 2018, founder Yvon Chouinard made the company’s purpose even more bold: “to save our home planet.” Purpose gives Patagonia the impetus to expand into multiple new businesses, such as food, in an effort to spur on new advances in regenerative agriculture. The company also creates films and books about environmental activism and launched Patagonia Action Works (PAW), a platform for matching volunteers with activist causes across different communities.

As Patagonia’s example suggests, your company’s purpose should drive decision making about portfolios and then inform your choices about the products and services you offer within those portfolio businesses. Your decision making will be sharpened further by following the heuristics of superpower (“what is the unique way that our company can create value and drive progress?”) and vulnerability (“what choices could we make that would be particularly discordant with our stated purpose?”).

Alphabet, for instance, prioritizes its mission to promote “freedom and focus.” It makes sense, therefore, that the Google Play app store no longer offers apps for personal loans that carry excessive annual percentage rates, such as those of predatory payday loans. Toy companies are profitably replacing dolls with unrealistic body images with offerings that are more true to life. Banks and financial institutions meet customer needs by introducing green auto loans, green mortgages, and green insurance; Swedish fintech Doconomy, for example, offers credit cards with built-in CO 2 -emissions limits. Purpose-washing? Not when the products and services offered are moored to an organization’s authentic, lived mission.

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2. people and culture.

The second lever for embedding purpose could, just as plausibly, be considered the first: people and culture. Purpose begins with human beings. Your employees, indeed all of your stakeholders, are your sources of strength and a hard check against inauthenticity. That’s why employee sentiment is often the single greatest force undermining insincere claims of purposefulness. Think, for example, of digital-native companies that have bold, change-the-world mission statements but nonetheless find themselves tripped up by accusations of “bro cultures,” or businesses called out for marketing aspirational messages while using labor from prison systems. In other cases, companies that have championed inclusivity have subsequently been accused of discriminatory behavior at the front lines.

Purpose can be aligned at critical points with your people and culture. That starts with hiring. Managers can actively screen for individuals who share the values that support the company’s purpose. As a senior leader of one high-performing activewear company told us, “We hire people who reflect the values of the company. We never hire bad people hoping we can change them.” Human-resource decisions grounded in purpose should also be reflected in people development and career pathways; being consistent and genuine will reinforce a virtuous circle throughout your organization. Managers should also articulate and role-model the mindsets and behaviors linked to company purpose and hold employees accountable for meeting targets. As the CEO of one Asian company recently told us, alignment with a company’s purpose can’t just be “management saying some nice words and calling it a day.” But when the company identifies what it wants in a key performance indicator (KPI), good managers “get it done.”

Decision making about your people and culture also includes capturing opportunities as they arise. At a 2019 annual general meeting, a bp employee raised her hand to ask, “When is bp going to give [employees] jobs that are meaningful?” Impressed, senior executive (and now CEO) Bernard Looney promoted her a short time later to the role of “purpose engagement manager,” with the remit to work with employees to further the company’s vision of reimagining energy.

The quest for meaning is part of the human condition and is embraced, not squelched, by purposeful organizations. Employees at purpose-driven companies are four times more engaged at work.

The quest for meaning is part of the human condition and is embraced, not squelched, by purposeful organizations. Our research shows that employees at purpose-driven companies are four times more engaged at work—a powerful source of competitive advantage. Consider Best Buy. Former CEO Hubert Joly transformed the consumer-electronics retailer to a model in which customer service, powered by the human touch, would be the differentiator. Under his direction, the company moved to invest heavily in employee training; provide employee discounts to encourage its own people to buy, use, and then recommend products to others; and advance Geek Squad, enthusiastic agents who help choose, install, personalize, and support products that Best Buy sells. That reinforced Best Buy’s purpose to enrich lives through technology and helped make the business more enjoyable for customers and employees alike.

Indeed, it’s hard to overexaggerate the importance of employee commitment. London Business School professor Alex Edmans demonstrated that companies that invested significantly in employee well-being outperformed their peers in stock returns by 2 to 3 percent a year. That makes sense; how enthusiastic, really, should we expect employees to be if they are just punching the clock? Thus, when PayPal CEO Dan Schulman dramatically boosted employee pay in 2019 and increased benefits and made all employees shareholders in the company, he did so precisely with purpose in mind. Passionate employees radiate enthusiasm to customers and communities alike.

Your people can also be your best barometers of progress. Investigations into the banking industry over recent decades are littered with examples of early-warning signals from employees of poor conduct, the misselling of products, and faulty product design. Many of these signals either fell on deaf ears or were willfully ignored. Ensuring that your people have appropriate mechanisms and tools supported by a “speak up” culture to identify gaps is critical to embedding purpose.

A McKinsey Live event on ‘Purpose vs PR: how business can find meaning in the COVID-19 era’

3. Processes and systems

The third lever, processes and systems, addresses a core “how” of your business model: the operational initiatives, incentives, and governance mechanisms your firm relies upon to create value and to realize its purpose. It takes robust systems to keep (or start) the purpose engine humming. Some elements, of course, will be industry and business dependent. For example, food companies can identify and source healthier ingredients from their farmers, and more environmentally friendly materials from their packaging suppliers. But, regardless of sector, most companies can embed best practices, from cafeteria composting to paid leave for community service.

Your processes and systems initiatives should do the same, with considered planning for the present and future. Take, for example, Microsoft’s approach to carbon emissions. The company already worked to be carbon neutral (a goal it achieved in 2012), and has since aimed even higher: by 2025, Microsoft expects to consume only renewable energy at its data centers, buildings, and campuses; and the company plans to completely electrify its global campus operations vehicle fleet by 2030—the year the company has announced it will be carbon negative. While some organizations track carbon to create nominal (though meaningful) “carbon-adjusted” financial reporting, Microsoft already assesses an internal carbon fee on its business divisions. Funds from the assessment are used to invest in further carbon-reduction efforts within the firm, and to contribute to environmental causes worldwide.

Indeed, when embedding purpose in your company’s processes and systems, it’s vital to look beyond the firm’s four walls. Walmart’s Project Gigaton, for example, embraces its entire supply chain: the program aims to help suppliers eliminate one gigaton of greenhouse gases by 2030. As part of the initiative, Walmart identified six categories in which suppliers should reduce emissions: energy, waste, packaging, forests, agriculture, and product use and design. It then built a platform to help suppliers chart their emissions reductions. Suppliers come up with their own emissions-reductions goals, which must be “SMART”—specific, measurable, achievable, relevant, and time limited. They are also required to report their progress annually, and top achievers receive recognition on Walmart’s sustainability hub website. Hundreds of suppliers currently take part, and Walmart expects even more to join.

As BHP’s CEO, Mike Henry, recently shared , embedding purpose throughout the supply chain is proving to be a source of resilience, even in the face of COVID-19. From the start of the pandemic, BHP moved to support its small, local, and indigenous suppliers by reducing payment terms from 30 days or more down to seven days. The company understood that these suppliers would be vulnerable, and sought to play a role in supporting them. That resonates. “When [suppliers] have seen that we’re there for them in their time of need, they’ll be there for us in our time of need,” Henry explained. “And that’s what we’ve seen. They’ve invested greater effort to ensure that they can continue to support BHP and keep the commitments they’ve made to us.”

Five ways that ESG creates value

4. performance metrics.

Purpose can and should be measured rigorously. In practice, this means identifying the key performance indicators that tie to your company’s purpose, tracking them over time, and incenting your organization to meet purpose targets. What gets measured gets managed, as Peter Drucker famously observed. The converse is perhaps even more apt: what you seek to manage should be measured, and on a consistent basis. Too often, companies mistake, and then conflate, ESG benchmarks with purpose metrics. Standards from third-party organizations such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB), while important, should never become the ESG reporting “tail” that wags the purposeful company’s dog. Purpose should come from within and guide the unique metrics you measure and track. If your company starts with ESG reporting and then “backs into” a purpose, it’s getting purpose backward.

Purpose should come from within and guide the unique metrics you measure and track. If your company starts with ESG reporting and then “backs into” a purpose, then it’s getting purpose backward.

Since purpose expresses what your company is and aspires to be, purpose metrics should inform not only day-to-day operations but also allocation decisions such as capital expenditures and M&A, as well as company-wide transformation initiatives. A number of energy companies, for example, now tie executive compensation to emissions. One leading retail bank, to take another case, found itself prominently featured in a national scandal in which several financial institutions in the country had committed different regulatory breaches. The harsh negative publicity prompted hard thinking about the bank’s fundamental purpose and its relationships both with broader society and individual customers, and about how to identify, measure, and improve its purpose-based performance. Part of that purpose focused on improving customer outcomes. One way the bank oriented toward a more purposeful outcome was to redesign incentives. The bank’s previous incentive structure included volume-based targets. Although financially not significant, reducing the weight of volume-based targets in performance evaluations was regarded by the bank as critical to its purpose shift, if only for symbolic reasons. But, remarkably, after reducing the weight of volume-based targets, the bank proceeded to financially outperform its peers. Quality of purpose, and the broad activities and behaviors that underpin its purpose, proved to be more influential than quantity. The bank now takes a more balanced approach to the measurement of, and reward for, the performance of frontline staff and managers. It incorporates a broader set of metrics related to customer outcomes, including, for example, the number and extent of interactions with customers to better understand their needs.

There are a range of tools and KPIs that companies can use, but, because purpose is bespoke, off-the-shelf solutions almost never have the same impact as those that are carefully tailored. Moreover, measuring and activating should not be limited to monetary incentives. Companies can encourage community outreach by celebrating offices and employees who contribute measurably to the organization’s mission. Businesses can also use behavioral economics to “nudge” for positive behavior, such as energy saving or waste reduction. We’ve found, too, that simply showing employees and other stakeholders how the organization is progressing along metrics such as diversity or sustainability—information that can be presented clearly in standardized reports—reinforces purpose and builds momentum for more.

It’s a fair critique to say that purpose can feel orthogonal, particularly at the start of a purpose-focused initiative, because, in a prior way of doing things, it may indeed have been orthogonal. But as employees and other stakeholders are presented purpose-based metrics on a routine basis—numbers of employees from underrepresented groups, for example, or contracts with minority suppliers or customers—purpose will feel more comfortable. It becomes standard procedure.

5. Positions and communications

What’s true within your organization should be consistent beyond it: purpose should be embedded into how your organization conveys information to and engages with the public. It’s within this “P” that charges of “purpose washing” are most likely to arise—and understandably so. Artificial expressions of purpose ring false, and stakeholders recognize inauthenticity. The Edelman Trust Barometer, for example, found that two-thirds of respondents agreed that “[a] good reputation may get me to try a product, but unless I come to trust the company behind the product, I will soon stop buying it.” 1 Edelman Trust Barometer Special Report: In brands we trust? , Edelman, June 18, 2019, edelman.com. More than half of respondents also believe that every brand has a responsibility to get involved in at least one social issue that does not directly affect its business. 2 Edelman Trust Barometer Special Report: In brands we trust? , Edelman, June 18, 2019, edelman.com.

The growing ascendance of the belief-based consumer is a powerful opportunity for many companies to step up much more visibly on the “S” element of ESG and strengthen their social license to operate. One way to do so is to consider the trade associations your firm supports—or perhaps no longer should. Both Royal Dutch Shell and bp, for example, undertook extensive reviews of those receiving their support and ultimately withdrew from a number of trade associations because they were deemed inconsistent with the company’s purpose. Another action is to step up your philanthropy and corporate giving, making those efforts of a piece with your business model. Doing so in an authentic way, linked to your company’s superpower and demonstrable to those around you, can strengthen your organization’s ties with its community and burnish its social license. General Mills, for instance, aligns its 150-year old philanthropic foundation to share food expertise by partnering with employees in the communities in which they live and work. As well, Philippines-based conglomerate Ayala Group spearheads “Project Ugnayan,” a private-sector partnership working with hundreds of local companies to help feed millions of people in the Greater Manila area.

When purpose is hardwired, your company’s positions, communications, and external engagement become logical extensions of your business model; purpose eliminates the gap between walk and talk.

When purpose is hardwired, your company’s positions, communications, and external engagement become logical extensions of your business model; purpose eliminates the gap between walk and talk. Consider Takeda , headquartered in Japan, and one of the world’s largest pharmaceutical companies. The organization strives, as CEO Christophe Weber explained, to “put [its] employees and patients first.” When COVID-19 hit, it was among the first pharmaceutical companies in many countries to pull its field force and put a hold on marketing calls. “For us,” Weber related, “that was an easy decision.” Or Microsoft, which has a strong commitment “to empower every person and every organization on the planet to achieve more.” The company announced that it would be closing all of its brick-and-mortar stores and focusing its retail operations on digital storefronts. That hard decision was a while in the making, and was finalized during the economic downturn brought about by COVID-19. Remarkably, however, Microsoft decided that the store workers will now continue serving customers from corporate facilities and remotely, providing digital sales, training, and support.

Purpose is a source of competitive advantage, but it must be genuine and infused in your organization’s business model. The 5Ps provide a framework to help companies embed purpose in a systematic, holistic way. It helps organizations unlock sources of value, identify points of vulnerability, and do well by doing good.

This article was a collaborative, global effort among Sebastian Leape and Jinchen Zou (consultants in McKinsey’s Washington, DC, office), Olivia Loadwick (an associate partner in the Sydney office), Robin Nuttall and Matt Stone (partners in the London office), and Bruce Simpson (a senior partner in the Toronto office and leader of McKinsey’s purpose and ESG initiative).

This article was edited by David Schwartz, an executive editor in the Tel Aviv office.

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SOP (Statement of Purpose): Format, Samples, and Tips

• Updated on  
• Feb 17, 2024

To aesthetically present a movie on the screen, great actors are the requisites. Similar is the case when one is carving their own career path. From choosing the right course to getting into your dream university, you need to take each step carefully. As a crucial part of the eligibility criteria, the universities often demand LOR s, SOPs or entrance test scores to assess the candidates and their suitability for the chosen course. A Statement of Purpose (SOP) is one such element that beholds great value in the admission process of those aspiring to study abroad. Creating an alluring SOP is essential to help the assessment committee understand your willingness for the program you have applied for. This blog aims to provide a comprehensive step-by-step guide on drafting a statement of purpose that can help you sail smoothly through the assessment process and get entry into your dream academic institution.

This Blog Includes:

What is a statement of purpose (sop), why is sop important, sop format, 2. formulate, 3. revise and modify, what do colleges look for in an sop, how to write a perfect statement of purpose (sop / admissions essay), introduction, academic background and professional experience, career goals, why this course, why this university, how long should an sop be, what to include in an sop, what not to include in an sop, 10 tips to write a successful statement of purpose, sop sample for business analytics, sample statement of purpose for mba , sample statement of purpose for masters, sop formats for usa, canada, uk, and australia, top 5 mistakes to avoid while writing an sop, how can you reduce your chances of rejection from your chosen university, can sops help with scholarships, sop vs letter of motivation, sop vs personal statement.

A Statement of Purpose can be referred to as an informative document, containing personal statements, and is essentially required as part of the admission procedure of study abroad programs. Also referred to as an application essay, it comprises the basic details of a candidate along with their professional and personal interests, academic highlights as well as future aspirations. An SOP plays an integral role in the application process of a study abroad program as it provides the admission board with the key information about the candidate and why they want to study a particular course at their institution. It not only describes who you are as an individual but also gives an idea about your writing skills and proficiency in the English language.   

A well-written SOP is an extremely significant element during your admission process. While the academic record and other exam scorecards, academic transcripts and backlog certificates are essentially objective in nature, an SOP is the only truly subjective aspect of your application. It is the only document in your application that allows you to prove that you have something unique which makes you stand out from the crowd. As such, it is the document of your application docket that can hugely determine your admission.

Also Read: Statement of Purpose vs Personal Statement

As such, there is no particular or proper format for writing a statement of purpose or an SOP. Students have to write an SOP just like an elaborative and descriptive English essay dividing the whole context into different paragraphs. Each paragraph must be having distinctive features describing different scenarios, features or characteristics about yourself. You can take the help of the below-provided structure and get started with writing an SOP for the university you want to study in. 

How to Write a Statement of Purpose?

As a pivotal document for any study abroad application, an SOP needs to be precisely well-written. To help you understand the different elements of this document, we have curated a step-by-step procedure that you can follow to curate an impressive statement of purpose.

The first step of the process of drafting a statement of purpose is to think about the varied aspects of your candidature that you should mention in it. The mandatory inclusions of an SOP are academic achievements (especially at the undergraduate level), prior work exposure or volunteering experiences. Start with framing an outline for the document and ask yourself the following questions:

• Which field of study excites me the most?
• Why do I want to pursue this degree?
• What are my expectations from this degree?
• What outgrowth can this degree offer me?
• Where can this degree take me, personally and professionally? 
• Through my pre-requisites, what values can I add to this program?

Once you have made key pointers for most of the questions mentioned above, you can begin jotting them down in a thorough and comprehensive manner.

Now that you know what you want to mention in your SOP, it’s time to curate a rough outline for the document. Here is a list of some essential tips you need to keep in mind while formulating your statement of purpose:

• Since the admission committee strives to understand your candidature through the SOP, you need to be honest in describing your career aspirations and objectives. Focus centrally on maintaining the authenticity of your mentioned details. Duly elaborate on your advantageous perception of the chosen course.
• Creatively cite your personal and professional interests. Mention what you are passionate about and what excites you. Then, sensibly connect it with your chosen program and how it will assist you in grooming your skills. For instance, you can state that you are aspiring to gain experiential learning or training in your desired industry through the course.
• What brought you here should be a sure-shot mention in your SOP. You can begin with stating those features of your chosen course that convinced you to opt for it. Then, write down the objectives you want to fulfil by studying the program. It can be personal growth or professional upliftment or even both. Try to be unique and precise when listing your reasons. 

Once you have jotted down your SOP as per the above-mentioned necessary tips, the final and concluding step is to revise and make changes accordingly. Go through the list that you created in the beginning and ensure that you have added all of them.

• The word limit for a statement of purpose is between 500-1000. 
• Do not miss out the predefined sizes for spacing, margins and font size.
• Try getting a second opinion but getting your SOP read from a friend or an experienced professional.

Many foreign and even national universities ask for a Statement of Purpose (SOP) from candidates wanting to enrol in suitable courses that the university has to offer. They ask for the SOP from candidates in order to check and look at the following things:

• The writing capabilities of the writer or the candidate 
• The X factor that makes their writing stand out from the crowd
• Choice of thoughts and ideas that has been explained in the SOP
• The unique personality of the candidate 
• Candidate’s talent, previous experiences, interests and potential
• How and what can the candidate contribute to the department of the college/university
• Candidate’s motivation or inspiration to study a selected course must be evident and justified
• The reason behind to choose a particular university/college and a particular course of study
• Academic and extracurricular achievements and recognitions (if any)
• Originality and clarity of the SOP as a whole. 

To know more, read our blog on – How to Write an SOP?

Check out the video on the same below!

How to Write a Powerful and Convincing SOP?

Whether applying for undergraduate, graduate, or post-graduate programmes, the strategy of writing a powerful statement of purpose should be sound focused throughout. Starting from your academic and professional background to your career aspirations, you need to carefully connect all the dots between reaching your goals through your choice of school and course. The essay should always go in a flow covering your past experience, present involvements, and future plans. An important point to remember while writing your SOP would be to divide it into paragraphs that cover all the pointers. Here is a look at how you may write the SOP presenting your profile strongly:

This paragraph is often confused with self-introduction. It should not introduce you but should discuss what you are about to discuss in your SOP. There are multiple approaches you may adopt to go about this paragraph:

• Discuss your long-term goal and connect it with your idea of pursuing the course you are applying to
• Present your understanding of the chosen field and write how you want to contribute to that field
• Explain your background in 2-3 lines and connect it with your future goals
• Write about an anecdote that helped you realise your professional interest in the chosen field

This comprises of your academic background: what you have done so far, what you are currently pursuing, your academic strengths and projects, and the industrial exposure you have attained.

This is the most important paragraph, where you should discuss your short and long-term goals. Your immediate goal would be where you would want to work right after completing this course. You should be able to name some companies within India along with the designation you see yourself working at. This should explain the kind of job profile you would be working on.

Then comes your long-term goal, wherein you should mention where you see yourself from 10-12 or 15 years down the line. This may include your desire of working at the CEO/CFO/CTO level or maybe establish a firm that you own. It may also include your dream of expanding your existing family business overseas. You may also be interested in further studies like a PhD which can be included here.

More in this section may include your desire of becoming a professor or researcher. In any case, it is suggested that you discuss your business aim, principles, and core values or how you would influence the young aspirants of this industry. You should be able to portray ‘how you wish to make a difference in the industry keeping in mind the current industrial scenarios and emerging trends.

In this paragraph, you should discuss why you want to join a course and what modules would you tap during this course. It should also cover the skills you would acquire in this duration along with the exposure that would help in developing the skills desired to realise your goals.

This is a specific paragraph wherein you can convince a university as in how they are suitable for your profile and you are an ideal candidate for their university. You should discuss the course curriculum, research work, faculty names, as well as the university-specific activities that would help you in enhancing your profile.

Also Read: How to Write a Best Statement of Purpose?

Ideally, if considering an internationally renowned university, then the statement of purpose should be at least 1-2 pages long. In terms of word count, then the same should be around 1000 words. Having said that, the word limit and the length may also sometimes depend on the university that the candidate is targeting and also on the level of degree. Like for example, a candidate who is writing an SOP for an undergraduate program may not exceed 800 to 1000 words whereas a candidate who is writing an SOP for a PhD or M.Phil degree course has to write it in around 1200 words and sometimes even more. Some universities even have a fixed length and word count which is uniform for all the programs and courses. 

There are many elements to an SOP. Universities could ask question-based essays or simply a general statement of purpose. Until and unless categorically asked, an SOP must include your goals and the career path you have taken up so far as well as your academic progress. Other elements that are further important to the SOP are also the personal motivations that lead you to choose the university/course you have applied to as well as how you intend to use that experience to achieve that goal.

Following are a few things that you must do in order to make your SOP application strong:

• Your Statement of Purpose should have a unique and engaging beginning as well as an end. It must be original, a reflection of you. 
• Explain your academic background, present and future aspirations. Through this, you must justify your choice of a particular course for masters or doctorate courses.
• Upon reading your SOP, the admission officer should be able to understand how you can contribute to the university in terms of research and further scope in your chosen area. 
• Always write your SOP in an active voice and ensure you provide information in a manner that is a reflection of your passion and optimism. If you have any statements or references, try quoting them with relevant examples rather than being direct.

Often universities come across a lengthy statement of purpose and yet they reject it. Even when you cannot find one grammatical error, the seemingly excellent SOP would be rejected. And the primary reason is – too much unnecessary information. For instance, just because you might want to talk about your family, does not mean you go on and on to talk about only your family. While your SOP should be a brag sheet, it should be a brag sheet with a substance. You need to pick and choose what to include. Pick a theme and mention the accomplishments that make the most sense to your candidacy.

• Weave your career path into a story, not statements.
• Do not write what you think should be written. Personalise the SOP and make it your own.
• Do not stress over it. Although it is an important part of your application, the SOP should be a direct reflection of you.
• Find the deeper meaning behind the events of your life and pen them down.
• Give a strong reason as to why you chose the particular school and course.
• Be specific in the timeline of events.
• Use a formal but conversational tone.
• Accept your mistakes and explain how you are willing to act on improving. Use action items.
• Give yourself enough time to write the SOP and edit it constantly. 
• Proofread, edit, re-edit and then edit it again! There is always room for improvement, remember that.

Also Read: SOP for Scholarship

Statement of Purpose Samples

Here are some good examples of well structured SOPs that you can refer to while writing your own.

“ A successful career in Business Management requires adequate knowledge to utilise the strengths and weaknesses of an individual. In my undergraduate degree, I majored in economics and psychology because I believe that understanding these two fields is important for leading a successful business. I want to increase my experiences and knowledge further by pursuing an Executive MBA, which will equip me with advanced skills that are necessary to achieve my career goals.

As I have carried out various leadership positions, I have learned how to efficiently work in teams and pursue the specified goals. In my previous company, ABC, I successfully implemented the strength-cum-weakness finder software which helped us assign projects to the groups based on the mapped data. As employees got allotted tasks as per their efficiency, it resulted in a 30% net gain for the company over the following year. I believe that a successful business leader understands the importance of strategically utilizing a company’s resources to ensure the maximum potential and development of the company. Further, the pivotal thing I learned about myself by taking up leadership roles is that teamwork is a crucial element of successfully achieving an organisation’s objectives. An Executive MBA will help me furnish my leadership skills imparting me with the knowledge of hierarchical structures and how to work with other leaders of different domains in an effective manner.

Studying for an Executive MBA, I plan to take charge of multiple team projects throughout the duration of the degree so that I can polish my teamwork skills. I aspire to work under industry leaders and attain global exposure. Pursuing this degree from your institution, I aim to gain professional as well as personal skills that can help me soar through my career journey. ”

I had a keen interest in Biology since childhood. I was eager to learn about the living organisms around my surroundings and how they function. I took this interest forward and decided to pursue my higher education in biology. When I was first introduced to the field of biotechnology, I was mesmerized by what technology can do to improve the life of any living organism. This inspired me to look at various research programmes in biotechnology and how we are moving towards a phase where technology can alter even the basic fragments of any living organism and change the course of life an organism goes through. I observed the various research patterns that have been taking place in the agricultural industry with the advent of GMO (Genetically Modified Organisms) giving birth to the Green Revolution. This was only one potential achievement in the extensive list of achievements that biotechnology was progressing towards. I worked with a reputed biotech firm which gave me an insight into how fast-paced the research in biotechnology is. The firm gave me the necessary exposure leading me to decide that I want to pursue MS in Biotechnology. My ambition to work in this field lies essentially in bringing changes in the lifestyle of people in a way that I can research and extensively study the required positive steps towards climate change. My goal is to achieve a sustainable lifestyle for every individual. The exposure that your esteemed institution will give me in the field of research will help me achieve this goal by working at a reputed platform

• Sample SOP for Australian Student Visa
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• SOP for MBA: Essentials to Mention & Samples
• SOP for Australia

Here is the basic format for USA, Canada, UK and Australia:

If you are planning to study abroad and want to write a good and outstanding statement of purpose for the university that you are targeting, then here are some of the common mistakes that you can avoid from the very beginning while writing an SOP:

• Writing the SOP at the last moment without any plan of action or a roadmap
• Writing a weak and vague introduction and conclusion 
• Using informal language, slangs, short forms in your SOP
• Exceeding the word limit and not reaching the correct word limit at all
• Making your SOP excessively flashy and flattery

If you are eligible for any college-specific scholarships, then during the application process you will be required to write a separate essay/SOP. Either you will be given an essay prompt/question along with a word limit or they would simply ask for an SOP stating the reasons why you think you deserve this scholarship and/or what makes you unique from the rest of the candidates? Thus, a generic SOP is different from a scholarship SOP.

Must Read: LOR: Types, Format, Sample and Tip s

A Letter of Motivation is a letter directly addressed to the admission committee/department faculty explaining your objectives, motivation and goals related to the course. The SOP is not addressed to any specific person or department, it is drafted in an essay format, whereas, the motivational letter is always addressed to a professor or department under whose guidance you will be studying.

Also Read: How to Write a Motivation Letter?

Very much similar to an SOP, Personal Statements are an on-page essay where you write about your motivation, inspiration, goals, and achievements. Personal Statements usually have a more intimate tone than SOP as it talks about the highlighted incidents of your life. Another crucial difference between an SOP and a Personal Statement is that an SOP is addressed to no one in particular, while a Personal Statement is addressed to a professor or department under who you choose to study.

Relevant Reads:

Only your LORs need to be attested by your college or company. An SOP need not be attested/self-attested until and unless specified by the university. If you take a LOR from your college professor/school teacher or a Principal/Dean, then that LOR needs to be signed by the recommender along with the college/school stamp and letterhead. Similarly, for professional LORs, they need to be signed by their respective recommenders on the company’s letterhead and company stamp.

Once you have finalised your SOP draft, give it a double-check for grammatical and formatting mistakes. Your next step should be to analyse and critique your essay. Look at your SOP through the eyes of the Adcom and see what you find lacking. For more effective inputs, you can show your drafts to your friends and family and see how they react to them. Accordingly, you can make some changes but do not overdo it or deviate from the format. Lastly, check for spacing errors and save the final SOP which you will be using for the application process.

You should avoid mentioning any low marks or shortcomings about yourself in any of the application documents, including SOP. There are very few universities that ask you about your gap year. For them, you can mention the reason for the gap between your studies. Generally, no university asks about low grades during your study period as your selection depends on various criteria like exam scores, student profile, financials, and so on. Thus, it is advised against mentioning any flaws or low marks.

Hence, we hope that now you are geared up with all the quintessential tips to start carving out your SOP. If you still have doubts or need further professional guidance, you can always reach out to our Leverage Edu experts and we’ll assist you throughout the admission process, be it selecting a suitable course and university or drafting impressive SOPs and LORs. Call us immediately at 1800 57 2000 for a free 30-minute counselling session.

Team Leverage Edu

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I was really impressed and happy with the informations I was able to get reading through your well documented page.

I am really impressed reading through your sample and guides in writing an SOP.I was able to put mine together and I have submitted awaiting feedback from the Admissions office. Thanks so much.

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Stanford Online

How to write a compelling statement of purpose for graduate school.

A statement of purpose (SOP) is a critical component of most graduate school applications, and are often required for various types of graduate level programs, including Graduate Certificates and Master’s Degrees .

An SOP offers you the opportunity to showcase your motivations, qualifications, and aspirations to a school’s Office of Admissions. Crafting an effective SOP requires careful planning and attention to detail. Whether you're applying to Stanford or any other institution, here's a guide on how to write a standout statement of purpose that shows how your goals align with the program's expectations.

Understanding the Prompt

A prompt's comprehensive nature offers you the chance to provide a holistic view of your journey, motivations, and aspirations. Be sure to check the websites of any programs you’re applying to, as they often have additional information or suggested frameworks to get you started.

Stanford Master’s Degree

If you are applying to a Stanford master’s degree program , the recommended maximum length for your SOP is 1,000 words and the prompt for the statement of purpose emphasizes several key elements:

• Reasons for applying
• Preparation for the field of study
• Research interests
• Future career plans
• Relevant aspects of your background

Stanford Graduate Certificate

If you are applying to take individual graduate courses or pursue a graduate certificate through Stanford Online, the prompt contains less elements than for the master’s program. This statement of purpose should be brief, as you’re limited to 4000 characters. You should summarize:

• Specific course work on your transcript that meets the course and or certificate prerequisites
• Relevant aspects of your professional experience

Tips for Writing your Statement of Purpose

After you fully understand the prompt for the program you’re applying to, use these tips to guide your writing:

• Be Concise and Focused Most institutions have maximum lengths for words or characters. With limited space, it's important to be concise and focused. Use each word purposefully to convey your message. Ensure that every paragraph adds value and contributes to your overall narrative.
• Start Strong Your opening should be attention-grabbing. Consider sharing a personal anecdote, a relevant quote, or a thought-provoking question that sets the tone for your SOP. Engaging the reader from the beginning can make your statement more memorable.
• Address the Prompt Thoroughly Cover each aspect of the prompt thoroughly, addressing your reasons for applying, your background preparation, your research interests, and your future career plans. Use specific examples to illustrate your points. For instance, if you're applying to a computer science program, discuss projects, coursework, or experiences that highlight your passion and readiness for further study in this field.
• Showcase Fit with the Program Demonstrate a clear understanding of the program you're applying to and explain why it's an ideal fit for your academic and career goals. Highlight specific courses, professors, research opportunities, or unique features of the program that attracted you. This showcases your commitment to the program and demonstrates that you've done your research. You may consider including reasons your presence will benefit the program as your uniqueness may help set you apart from other applicants.
• Highlight Research Interests Discuss your research interests in detail. Explain how your past experiences have shaped your interests and how the program's resources can help you further develop them. Share any relevant research projects you've been a part of and explain their impact on your academic journey. If your program includes a capstone, you may want to include more actionable, compelling examples.
• Connect to Your Future Career Articulate your future career plans and explain how the program will prepare you for success. Whether you plan to pursue academia, industry, or another path, convey how the skills and knowledge gained from the program will contribute to your career trajectory.
• Weave in Personal Background Share aspects of your personal background that are relevant to your journey. This could include challenges you've overcome, experiences that have shaped your perspective, or unique qualities that set you apart. Ensure that these details contribute to your overall narrative and that adding them showcases your qualifications.
• Edit and Proofread After writing your SOP, review it meticulously for grammar, punctuation, and clarity. Typos and errors can detract from the impact of your statement. Consider seeking feedback from mentors, professors, or peers to ensure your SOP effectively conveys your message.
• Tailor for Specific Programs If you're applying to multiple programs, make sure to customize each SOP to align with the specific program's offerings and requirements. Avoid using a generic SOP for all applications, this tends to be very noticeable to admissions.
• Seek Inspiration from Examples If you’re applying to a Stanford Master’s program, the Stanford Graduate Admissions website provides specific guidance on the statement of purpose. Review your program’s recommendations and, if available, consider reading sample SOPs from successful applicants to gather inspiration and insights.

Writing a compelling statement of purpose for graduate school requires thoughtful reflection, careful planning, and clear communication. By addressing the prompt comprehensively, showcasing your fit with the program, and demonstrating your passion and readiness, you can craft an SOP that stands out and may even increase your chances of admission to your desired program. Although it’s far from the only criteria that will be considered in the admissions process, your SOP is your chance to tell your unique story and show why you are a perfect candidate for graduate study. We hope you find this guide useful as you write your statement of purpose, please know that following this guide does not guarantee your admission to any program.

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