Why is a clear mission statement significant for a business?

A clear mission statement is significant for a business primarily because it communicates purpose to stakeholders. The mission statement serves as a guiding framework for the organization, outlining its fundamental goals and values. This clarity of purpose helps align the efforts of employees, ensuring that everyone in the organization understands what the company stands for and what it aims to achieve. It fosters a shared sense of direction and motivates team members by instilling a sense of belonging to a larger goal.

In addition, a well-articulated mission statement can effectively convey the company's intentions and ambitions to external stakeholders such as customers, investors, and partners. This communication helps build trust and can enhance stakeholder engagement and support. When stakeholders understand the mission and alignment with their own values, it can lead to stronger relationships and loyalty.

The other options do not reflect the core purpose of a mission statement. While attracting investors can be a secondary benefit of having a clear mission, it is not the primary significance. Increased employee turnover contradicts the intended effect of a clear mission. As for determining production costs, that falls under operational strategies and financial management, rather than the overarching purpose that a mission statement provides.