Strategy

Rethinking the Firm's Mission and Purpose

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The dominant notion of the firm in Management theory is mostly borrowed from Economics and assumes that firms maximize profits or market value. This notion may be at the roots of today's basic problems in corporations. The current financial crisis has laid them bare. That notion is coherent neither with a broader view of human nature, nor with a wider perspective on the purpose of the firm. Moreover, this hypothesis may have negative effects on firms' leadership and governance, making the role of senior executives in society unattractive, and may erode corporate reputation. In this paper, we review those arguments and present a more comprehensive view of the firm.
Bibliographic citation: Canals, Jordi, "Rethinking the Firm's Mission and Purpose", European Management Review, Vol. 7, No. 4, 2010, pp 195 - 204

Reference: 10.1057/emr.2010.11 (DOI)
Date: 10/2010
Author(s): Canals, Jordi
Document type: Article in Journal (refereed)
Languages: English