Corporate Purpose

Definition: Corporate Purpose is the main objective(s) that is (are) being pursued by a commercial organization, as typically listed in its articles of incorporation or memorandum of association. It is the reason for having incorporated. A typical element of CP is to maximize long-term profits for the shareholders of the firm (shareholder value perspective).
But other constituents and goals can also be part of the CP (stakeholder value perspective).
A CP is often articulated in the corporate mission and mission statement.
Is the same as organizational purpose, except the last one can also be used for non-profit organizations.

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More on corporate governance: 3P Framework, Agency Problem, Belief System, Board of Directors, Boundary System, more on corporate governance...

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