First, let’s look at some definitions.

The primary purpose of the mission statement is to provide identity and focus. A mission statement says, “This is the business we are in today, as exemplified by our present products/services,” and it typically has a broad audience that includes the general public as well as all company stakeholders. It will typically be included in both a company’s annual report and proxy statement.[i]

Vision statements provide direction and motivation for an organization. A vision statement (sometimes called a vision and values statement) says, “Here is the difference we want to make in the world—the vital goal that animates us as we pursue our mission and adhere to our policies.” These, too, may be included in the company’s public filings.

In addition, most major companies have comprehensive codes of ethics. Indeed, the Sarbanes-Oxley Act of 2002 requires all public companies to have them.

The final rule promulgated under the law defines the term code of ethics as written standards that are reasonably designed to deter wrongdoing and to promote:

• Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships
• Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant
• Compliance with applicable governmental laws, rules, and regulations
• The prompt internal reporting to an appropriate person or persons identified in the code of violations of the code
• Accountability for adherence to the code

Codes of ethics are supported by policy statements. The main goal of any policy statement is to ensure ethical and legal behavior. A policy statement says, “This is how we operate our business. All our employees must adhere to these rules.” Almost all companies have developed policy statements for some aspects of their business.