The meaning of mission statements

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The meaning of mission statements
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Mission statements are often thought of as nonsense. But even guff has meaning, says our Bartleby columnist

But even guff has meaning. For investors in young companies in particular, the mission statement sends useful signals. It articulates what a firm does and gives clues to where its priorities lie. Such information matters all the more when founders exercise outsized voting power. The WeWork prospectus helped elevate the consciousness of investors that the property company had lost its marbles. WeWork ended up scrapping both its listing and its boss.

“We have not identified any potential business combination target, and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any potential business combination target,” runs a typicalMission statements contain multitudes in comparison. They can tell you which stakeholders matter most to a firm. A tiny handful of the non-s to have filed this month say their objective is shareholder returns .

The mission statement can also tell investors something about how technologically sophisticated a company is. Among this month’s filers there is a marked lack of flannel from GlobalFoundries, a big semiconductor firm. But for simpler products and services, it is not enough to describe what an enterprise does.

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