What Is a Business Creed?

By Stan Mack
A company’s business creed, or mission statement, is its
commitment to achieve a particular goal, behave in a certain way
or abide by a fundamental principle. A creed also might be a
public definition of a company’s guiding strategy. Often intended
to define a corporate culture, a creed can be short and to the point
or long and detailed.
Function
Most companies aim at profitability but have other goals, as well.
A business creed clarifies the objectives that guide an
organization’s behaviour. For example, a company might devote
itself to pushing the frontiers of innovation or working toward
improving an area of social need, such as public health.
Strategy
A creed might reveal competitive strategy. For example, a
company positioning itself as a purveyor of luxury items might
adopt a creed that proclaims quality to be the company’s sole
consideration. At the other end of the spectrum, a company
positioning itself as the provider with the lowest prices might
adopt a creed announcing its commitment to help customers save
money.
Employees
Creeds attempt to establish a corporate mindset, which can inspire
employees to support company initiatives and practices. For
example, some workplaces require employees to recite or sing the
company creed at the start of the day; the intention being to make
workers feel as if they are part of the company vision, motivating
them to be effective team players, according to the book
“Transformations of Corporate Culture: Experiences of Japanese
Enterprises.”
Effect
The effectiveness of a creed doesn’t depend on how catchy or
inspirational it is. Rather, a creed’s effectiveness depends on
whether it is apt. Practices sometimes differ from intention,
according to "Transformations of Corporate Culture: Experiences
of Japanese Enterprises." For example, if a company’s upper-level
management truly believes in the mission a creed espouses, the
creed will inspire workers. But if a disconnect exists between the
creed and the company’s actual practices -- for example, if the
creed says quality is a goal, but managers encourage workers to
cut corners -- the creed becomes meaningless or, worse, ironic.