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Trends of Corporate Mission Statements: From pursuing profit to distinctive and social value

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  • Gang-Hoon Seo

    (Business Administration, Kobe University, Kobe, Japan)

  • Munehiko Itoh

    (Research Institute for Economics and Business Administration, Kobe University, Kobe, Japan)

Abstract

A mission statement has a significant meaning as the initial and essential step in a company’s strategic planning process. Previous studies have pointed out the necessity of monitoring and longitudinal study of corporate mission statements as they should be continuously revised against changes in companies’ strategies and business environment. This study aims to shed light on what types of strategies and values are currently highlighted in companies’ mission statements in comparison with the findings of a well-known previous study. Therefore, this study conducted a content analysis of 491 Fortune 500 companies’ mission statements. As a result, we found that “philosophy” is mostly highlighted and “profitability” is not emphasized in contemporary companies’ mission statements. Compared to the past study, these findings imply that there have been dramatic changes in the content of corporate mission statements. Besides, this study divided 491 Fortune 500 companies into two groups, high performers and low performers, according to their Fortune ranking and investigated significant differences between high and low performers using t-tests. The high performers were found to more often highlight “selfconcept” and “public image” than low performers. However, the difference in mean scores between high and low performers has become smaller than in the past finding. In particular, there is no statistical difference in mission statement component numbers between high and low performers. These findings can provide futher understanding about changes of companies’ strategic emphasis and the nature of corporate mission statements. This study provides a comparative insight for practitioners making company mission statements.

Suggested Citation

  • Gang-Hoon Seo & Munehiko Itoh, 2019. "Trends of Corporate Mission Statements: From pursuing profit to distinctive and social value," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 10(3), pages 27-36, December.
    • Handle: RePEc:vrs:hjobpa:v:10:y:2019:i:3:p:27-36:n:2
    DOI: 10.2478/hjbpa-2019-0027
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    References listed on IDEAS

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    1. 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.
    2. Valerij Dermol, 2012. "Relationship between Mission Statement and Company Performance," Knowledge and Learning: Global Empowerment; Proceedings of the Management, Knowledge and Learning International Conference 2012,, International School for Social and Business Studies, Celje, Slovenia.
    3. Christopher Kenneth, Mark C. Bart Baetz, 1998. "The Relationship Between Mission Statements and Firm Performance: An Exploratory Study," Journal of Management Studies, Wiley Blackwell, vol. 35(6), pages 823-853, November.
    4. Lin, YiHsin & Ryan, Chris, 2016. "From mission statement to airline branding," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 150-160.
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    Cited by:

    1. Seo Gang-Hoon & Itoh Munehiko & Li Zhonghui, 2021. "Strategic Communication and Competitive Advantage: Assessing CEO Letters of Global Airline Alliances," Foundations of Management, Sciendo, vol. 13(1), pages 57-72, January.

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    More about this item

    Keywords

    Strategic Management; Mission Statement; Fortune 500 companies; Content Analysis;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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