Once a company has grown, it is an indispensable one Corporate philosophy to formulate. What a corporate mission statement is, it says what goal the In this article you will find out what the company mission statement is and what the requirements are.
What is a corporate mission statement?
corporate mission statements are written statements about the company’s tasks and goals and the management concept of an organization. Instead of mission statement, you can also use the terms corporate philosophy or business philosophy be used.
A corporate mission statement is usually just about that desired ideal state, the target state. There will be guidelines for that behavior of employees internally and externally predetermined. The corporate mission statement is intended to reflect the image of a company influence positively. For this reason, many companies now publish their corporate mission statements, for example to point out their commitment to environmental protection.
Corporate mission statements are often criticizedthat it is only about empty formulations, self-evidence or wishful thinking, because the company’s mission statements are rarely implemented in reality.
The mission statement can be divided into a present-oriented mission and a future-oriented vision.
Vision:
The vision describes what the company wants to achieve in the future. It should be meaningful and motivating and thus influence action. The vision formulates the goal and thus the target state.
The vision of Wikipedia is for example.
Imagine a world in which every single person has a free share in the totality of knowledge.
Mission:
The mission is the actual task of the company, usually from a social point of view or as an emphasis on environmental aspects. The mission describes the way. This is the current state.
Let’s stay with the example of Wikipedia. The mission describes the way in which the vision is to be achieved.
The mission of the Wikimedia Foundation is to empower and motivate people around the world to collect, develop, and distribute educational content effectively and globally, under a free license or in the public domain.
Requirements for a corporate mission statement
The corporate mission statement should pioneering be. So that it can also be achieved and is easy to understand, there are both content and formal ones guidelines.
the requirements to a corporate image should on the contents be written in relation to general validity. The mission statement represents a long-term perspective. It must be true and clear. Adjustments are of course possible, but here a long-term orientation is desired. The mission statement must be realizable and verifiable. Formally From this point of view, the corporate mission statement must be formulated comprehensively and concisely. It serves as an orientation for the employees.
You can find everything at a glance in the table below.
contentFormally
- general
- long-term inventory
- true and clear
- feasible and verifiable
IKEA’s mission statement is:
Because we all share the same values, we are able to keep the IKEA culture strong and alive. “The Will of a Furniture Retailer”, written by IKEA founder Ingvar Kamprad in 1976, is as relevant today as it was then and serves as the foundation of IKEA values. Our shared values and strong culture make IKEA unique – both as a place to work and as a brand.
- community
- We care about people and our planet
- cost awareness
- simplicity
- Renew and improve
- Different for a good reason
- transfer and take responsibility
- Lead by example
With the example of IKEA, you can see that the community is addressed. This is particularly important for the cohesion of all employees. In addition, attention is paid not only to people but also to the environment (see second point). Realizable and, above all, verifiable is cost awareness. Simplicity is universal, innovating and improving is true and clear. The other points serve as a guide and speak to everyone directly.
Functions of a corporate mission statement
A corporate mission statement provides all essential statements desired corporate culture (dealing with, demeanour, conduct). The corporate culture is to be specified in the corporate mission statement based on four functions. These are the orientation function, the integration function, the decision-making function and the coordination function.
the orientation function describes what we are and states what the company is and wants. This means both the vision and the mission. the integration function describes who we are and defines how the sub-theme differs from others. the decision function describes how decisions are made and the coordination function indicates how to communicate.
Functions of a corporate mission statement
orientation function
Integration functionDecision functionCoordination functionThe target state and thus the vision of a company is presented briefly.What distinguishes us from other companies and what do we have in common in the company.Long-term and short-term decisions are made on the basis of the corporate mission statement.How does internal and external communication take place in general.Examples: Values , norms, regulationsExamples: We-feeling, corporate identityExample: Rules for crisis managementExample: Employees, public
Example from the corporate mission statement of the REWE Group:
- We act independently in the sense of the community!
- We act for the customer – we are in the middle of the market!
- We have courage for new things. Stagnation means regression.
- We treat each other openly, with trust and respect. Our word counts!
- We strive for the best solution, make well-considered decisions and act consistently!
- We are aware of our responsibility and act sustainably!
All four functions can be found in the example above. »We treat each other openly, with trust and respect. Our word is true” is the orientation function, because values, norms and regulations are defined. The we-feeling in the integration function is by » affirming the group-wide common identity of the company and in this way strengthening the lasting cohesion «. With the decision function reference is made to the handling »We are aware of our responsibility and act sustainably!« and the coordination function can be found in »We act for the customer – we are in the middle of the market!«.
Content of a corporate mission statement
Of the main content every business it is monetary success to have. The path to this success is also firmly written in most corporate mission statements. However, it is not only monetary success that is firmly written in most corporate mission statements, but also a wide range of other content of mission statement content.
In summary, the company mission statement can be broken down into four main parts:
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Top corporate goals
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Company purpose/function
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Code of Conduct
-
line concepts
Top corporate goals
The top corporate goals should be defined in the corporate mission statement. These are intended for both the external and the internal Target groups be determined. To Outside As a rule, ethical-social (e.g. environmental protection) and non-monetary goals (e.g. quality) are set. To Inside monetary goals are also set, such as profitability, increases in market share or general increases in profits.
Company purpose/function
In the corporate mission statement, it should be exactly purpose of a company. The purpose of the company can be the products and services that are offered or planned. Features can also be presented that set your own products and services apart from the competition. In the case of globally active companies, statements can also be made about the market segments and sales markets. This area is used to present the products, services and activities.
Code of Conduct
In the corporate mission statement, the Code of Conduct of a company. On the one hand, it is determined how Executives towards their employees employees have to behave. On the other hand, it is also stipulated how the employees have to behave towards external stakeholders (customers, investors, suppliers or the competition). The way employees interact with each other is also defined.
In Asia, very drastic and catchy behavioral principles are often formulated, such as LG with »victory or death«. This is often related to a more competitive corporate culture.
line concepts
Under the management concepts, the various leadership techniques (Management by …) referred to. This is where the rules are laid down as to how the company’s employees are to be managed.
Congratulation! You have learned what a corporate mission statement is and what role it plays in business administration. You can find out more in our other articles in the area of corporate leadership/management. Have fun with your studying!
Mission Statement – The most important things at a glance
- Corporate mission statements are written statements to the corporate tasks and goals and to the management concept of an organization.
- The corporate mission statement can be divided into a present-oriented one mission and a forward looking one vision be subdivided.
- There is content and formal requirements to a corporate mission statement.
- A corporate mission statement has different ones functions:
- the orientation function
- the integration function
- the decision function
- the coordination function
- A mission statement should be the most important content cover:
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Top corporate goals
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Company purpose/function
-
Code of Conduct
-
line concepts
-