Local market would benefit from companies having a formal statement of purpose

SHAREHOLDERS hoping to learn about a listed company would invariably head to that company’s website and look under the “About Us” section. Here, most companies would include their mission statement outlining the big-picture goals they are looking to achieve – possibly, being a leader in the industry in which they operate.

Some companies may also set out their corporate values in this section – whether it be fostering innovation, encouraging employees to reach their full potential or providing excellent customer service.

Having such statements is undoubtedly beneficial in helping employees, investors and shareholders understand what the company is striving for. Yet, all these statements have, at their core, the maximisation of shareholder value, an ultimate goal that for decades has been widely accepted as the fundamental reason why companies exist.