A company credo defines the principles of an organization and can include mission statements and core beliefs. It has evolved to include promoting the well-being of employees, marketing, compliance, and corporate philanthropy. Good corporate citizenship is reflected in detailed creeds.
A company credo is a statement that literally defines the underlying principles of a company or organization. There are no hard and fast rules for creating a company credo. The creed can be part of the mission statement, or both can stand out. An organization is free to designate the company’s philosophy as core beliefs or ethical values. The important point is that a company’s credo articulates what the company stands for, particularly with respect to all sectors of society that have a stake in the company’s success.
At the beginning of the Industrial Revolution, it was enough for mechanized companies to manufacture products that consumers needed with reasonably consistent quality and to provide penniless former farm workers with a regular wage. Times changed when workers sought better wages and working conditions. Over time, company credos have professed a belief in promoting the well-being of an important stakeholder – its workforce.
The company credo was also created in the service of marketing. There have been times when blunt publicity for leading market dominance actually translated into mission statement and core belief. For example, the glue wars really started during World War II, when a soda manufacturer declared that every soldier’s hand should be holding a certain brand of soda. The company embarked on creating a supply chain that extended to the battlefields of the Pacific, North Africa and Europe.
Company creeds also pay close attention to compliance. From the end of the 19th century to the beginning of the 21st century, government has been a necessary stakeholder. In many countries, various regulatory agencies have tried to curb the power and abuses of big business. Trusts, monopolies, price cartels and misleading advertising often required intervention to protect consumers. Scandals committed by various companies triggered new laws that made it desirable for companies to declare themselves in compliance with the law, at least in principle.
In contemporary times, therefore, the wealth of big business is put behind company credos that exude a benevolent company philosophy. To be responsive to the times is to engage in corporate philanthropy, both at home and abroad. Humanistic management has left a mark in upholding a satisfying corporate culture. Mission statements and annual reports are deeply concerned with minimizing carbon footprints. Much is required of good corporate citizenship, and richly detailed corporate creeds reflect this.
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