Organizational Purpose

 
   

Definition: Organizational Purpose is the main objective(s) that is (are) being pursued by an organization, as typically listed in its articles of incorporation or memorandum of association. It is the reason for having incorporated. A typical element of the OP of a commercial firm 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 mission statement.
Is the same as corporate purpose, except the last one only be used for for profit organizations.


   

   

More on organizational purpose. More on corporate governance: Agency Problem, Belief System, Board of Directors, Boundary System, Chairman of The Board, more...

   


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