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Mission Statement Quality and Financial Performance

Author

Listed:
  • Bartkus, Barbara
  • Glassman, Myron
  • McAfee, Bruce

Abstract

Mission statements are widely considered to be important to business success. This paper reports on the relationship of mission statement quality (based on the inclusion of stakeholders, components, and the meeting of objectives) to financial performance. Our findings indicate that most elements in mission statements are not associated with firm performance. Mission statements that include phrases that refer to what many may view as the fundamental rules of business have a significant positive relationship with financial performance: be concerned with your employees, be responsible to the society in which you do business, and emphasize and communicate your value system.

Suggested Citation

  • Bartkus, Barbara & Glassman, Myron & McAfee, Bruce, 2006. "Mission Statement Quality and Financial Performance," European Management Journal, Elsevier, vol. 24(1), pages 86-94, February.
    • Handle: RePEc:eee:eurman:v:24:y:2006:i:1:p:86-94
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    Citations

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    Cited by:

    1. Bradley W. Benson & Wallace N. Davidson, 2010. "The Relation between Stakeholder Management, Firm Value, and CEO Compensation: A Test of Enlightened Value Maximization," Financial Management, Financial Management Association International, vol. 39(3), pages 929-964, September.
    2. Lara Penco & Giorgia Profumo & Roberta Scarsi, 2017. "Stakeholder Orientation in Cruise Lines’ Mission Statements," Sustainability, MDPI, vol. 9(11), pages 1-24, November.
    3. Ruth Wanjiku Muriithi, 2022. "The relationship between mission and performance of Christian faith-based hotels in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(4), pages 30-39, June.
    4. Bradley W. Benson & Wallace N. Davidson III & Hongxia Wang & Dan L. Worrell, 2011. "Deviations from Expected Stakeholder Management, Firm Value, and Corporate Governance," Financial Management, Financial Management Association International, vol. 40(1), pages 39-81, March.
    5. Odile Paulus, 2008. "La déclaration de mission, une revue de la littérature," Working Papers of LaRGE Research Center 2008-13, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    6. Quan Lin & Yutao Zhu & Yue Zhang, 2020. "How Does Mission Statement Relate to the Pursuit of Food Safety Certification by Food Companies?," IJERPH, MDPI, vol. 17(13), pages 1-15, July.
    7. Law, Kris M.Y. & Breznik, Kristijan, 2018. "What do airline mission statements reveal about value and strategy?," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 36-44.
    8. Ethem Duygulu & Emir Ozeren & Pınar Işıldar & Andrea Appolloni, 2016. "The Sustainable Strategy for Small and Medium Sized Enterprises: The Relationship between Mission Statements and Performance," Sustainability, MDPI, vol. 8(7), pages 1-16, July.
    9. William Patrick Leonard & Chia-Hsing Huang, 2014. "Linking Classroom Performance to the Institutional Mission Statement," SAGE Open, , vol. 4(1), pages 21582440135, January.
    10. Nikolai Brosch, 2023. "Corporate purpose: from a ‘Tower of Babel’ phenomenon towards construct clarity," Journal of Business Economics, Springer, vol. 93(4), pages 567-595, May.
    11. Marta Mas-Machuca & Maria Ballesteros-Sola & Adrián Guerrero, 2017. "Unveiling the mission statements in social enterprises: a comparative content analysis of US- vs. Spanish-based organizations," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 8(2), pages 186-200, May.
    12. Kooli, Chokri, 2019. "Governing and managing higher education institutions: The quality audit contributions," Evaluation and Program Planning, Elsevier, vol. 77(C).
    13. María del Mar Miras‐Rodríguez & Amalia Carrasco‐Gallego & Bernabé Escobar‐Pérez, 2015. "Are Socially Responsible Behaviors Paid Off Equally? A Cross‐cultural Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(4), pages 237-256, July.
    14. Jasmina Berbegal-Mirabent & Marta Mas-Machuca & Patricia Guix, 2021. "Impact of mission statement components on social enterprises’ performance," Review of Managerial Science, Springer, vol. 15(3), pages 705-724, April.
    15. Katia Giusepponi & Ernesto Tavoletti, 2018. "Vision and Mission Statements in Italian Universities: Results of an Empirical Investigation on Strategic Orientation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(1), pages 301-328, March.
    16. Quan Lin & Yingchang Huang & Ruojin Zhu & Yue Zhang, 2019. "Comparative Analysis of Mission Statements of Chinese and American Fortune 500 Companies: A Study from the Perspective of Linguistics," Sustainability, MDPI, vol. 11(18), pages 1-18, September.
    17. Giorgio Mion & Cristian Rolando Loza Adaui & Angelo Bonfanti, 2021. "Characterizing the mission statements of benefit corporations: Empirical evidence from Italy," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2160-2172, May.
    18. Mion, Giorgio & Loza Adaui, Cristian R. & Bonfanti, Angelo & De Crescenzo, Veronica, 2023. "Mission statements and financial and sustainability performance: An exploratory study of Benefit Corporations certified as B Corps," Journal of Business Research, Elsevier, vol. 157(C).
    19. Lin, YiHsin & Ryan, Chris, 2016. "From mission statement to airline branding," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 150-160.
    20. Macedo, Isabel Maria & Pinho, José Carlos & Silva, Anabela Martins, 2016. "Revisiting the link between mission statements and organizational performance in the non-profit sector: The mediating effect of organizational commitment," European Management Journal, Elsevier, vol. 34(1), pages 36-46.

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