Every company has a purpose. Articulating that purpose in a statement is a bit harder than you might think. Get a clear idea of what a purpose statement is and how to create one. Inspect dynamic examples of real-life purpose statements for nonprofits and businesses.
What Is a Business Purpose Statement?
If you’ve ever looked into a company, you’ve probably seen their mission or vision statement. But did you notice their purpose statement? A purpose statement answers the question of why a company exists. It will tell the consumer if you are trying to make the world a better place, provide freedom or keep everyone fed.
A purpose statement is important because it gives you something to work toward and determines your overall purpose for being in business. The wording of the purpose statement can vary, but it should guide the actions of the company.
Purpose Statement vs. Mission Statement
Purpose and mission statements are often confused or used interchangeably. However, the two terms do have slightly different functions.
- A mission statement clarifies the actions of your company, including what it does and who it serves. For example, “Our mission is to serve low income families with free online educational services.”
- A purpose statement answers the “why” in “why are you in business?” For example, “To encourage the passion to learn through ethical and honest means.”
As you can see, the mission statement describes what a company does and the purpose statement says why it does it. To make it even more confusing, some companies also throw their vision statement into the mix too. A vision statement provides an outline of the company’s priorities and future goals.
Creating a Company Purpose Statement
You might think that creating a purpose statement is easy. However, packing the reason for your company’s existence into just the right words can be a bit harder than you might think. Before creating a boring business purpose statement, it is important to:
- Research what other companies are doing that works
- Keep it short and concise
- Really dissect why your company exists
- Use powerful and thought-provoking wording
For example, an education company might have a purpose statement like:
Inspiring individuals to greatness and feeding their souls, one class at a time.
Not only is this short and concise, but it also sends a powerful message about why the company exists. By contrast, a boring purpose statement for an educational company might look like:
ZYX’s company feels the need to provide education that is inspiring to those around us and provide knowledge through our classes.
Not only is this one clunky, but it also totally misses the mark in trying to be dynamic and powerful. You can see why the company exists, but that is about it.
Corporate and 501c3 Purpose Statement Examples
Examples are the best way to highlight strong and dynamic purpose statements for business. Use some of the best real-world corporations and 501c3 purpose statement examples to inspire you.
Harley-Davidson
We fulfill dreams of personal freedom – it’s our purpose, and we take it seriously. And while freedom means different things to different people, it’s a bond that brings Harley-Davidson customers, employees, dealers, suppliers and enthusiasts together.
Harley-Davidson is all about providing freedom. Their purpose statement makes you visualize the wind in your hair as you ride. The freedom of the open road. They go on to clarify how that freedom works to bring them and their customers together, making their purpose pack a punch.
Whole Foods Market
Our purpose is to nourish people and the planet.
In Whole Foods Market’s purpose statement, every word is important. It clearly defines their connection not only to the planet but also to their customers through food. Using “nourish” rather than “feed” shows their commitment to healthy, nutritious food.
Charles Schwab
We champion every client’s goals with passion and integrity, as if they were our own.
At Charles Schwab, their purpose statement effectively works to make you feel safe. Not only are they highlighting their passion and integrity, but they’re also telling the world about their commitment to personalized service.
General Mills
We serve the world by making food people love.
General Mills purpose statement is short and clear. They want to create food that people will enjoy, including reaching a global audience. The clarity and use of wording make the purpose statement dynamic even though it’s short.
Southwest
To connect People to what's important in their lives through friendly, reliable, and low-cost air travel.
In this purpose statement, you can see Southwest’s commitment to meeting people's needs. They also further clarify the importance that they place on affordability. Their clear purpose leaves no questions about their goals.
Jump Associates
To transform lives through learning and growth.
Using strategy and innovation, Jump Associates works to help businesses learn how to change and grow. Their purpose statement uses only a few words to effectively define their existence. Rather than just saying they want to help grow business, they say they want to “transform lives.” This gives their company’s purpose an inspirational quality.
Easterseals
To change the way the world defines and views disabilities by making profound, positive differences in people’s lives every day.
Easterseals offers a straightforward purpose in an active voice for their nonprofit. The magnitude of their purpose statement makes both their work and their existence sound inspiring.
UNICEF
To work with others to overcome the obstacles that poverty, violence, disease and discrimination place in a child’s path.
UNICEF makes an appeal to you emotionally through the dynamic wording of their purpose. In one sentence, they create a vivid image of the world that they are working to create, pulling you in to help their cause.
Kiva
We envision a financially inclusive world where all people hold the power to improve their lives.
This purpose statement from Kiva elicits a robust view of the world that the nonprofit lending company wants to see. Their existence to find lending sources for underserved populations is distinctively defined. It also appeals to your emotions through the phrase “power to improve their lives.”
Stating Your Purpose
The purpose of your company is important and should be clearly defined. It should use powerful wording, while also being as clear and concise as possible. Don’t confuse a business purpose statement with a personal statement. Find out how they are different.