This work analyses the publicly available purpose statements of some of the world's largest companies, the FTSE350. The analysis proceeds through three screens. The results reveal that companies with a purpose statement outperform those without a purpose statement, when considering financial and ESG metrics. Further, a shorter purpose statement appears to matter as does one that connects a company's core business to what the world needs.
This work analyses the publicly available purpose statements of some of the world's largest companies, the FTSE350. The analysis proceeds through three screens. The results reveal that companies with a purpose statement outperform those without a purpose statement, when considering financial and ESG metrics. Further, a shorter purpose statement appears to matter as does one that connects a company's core business to what the world needs.