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Managing for Stakeholders and the Purpose of Business
Freeman, R. Edward; Parmar, Bidhan L. Technical Note E-0415 / Published September 13, 2017 / 10 pages.
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Product Overview

The benefits or harms achieved by a business is determined in part by the choices that business leaders make. One important driver of these choices is a leader's view of the purpose of business. This note: (1) outlines the history of debates about corporate purpose, (2) calls out some myths that persist in the way that people think about corporate purpose, and (3) introduces a view of business called "managing for stakeholders" that has become increasingly influential.

  • Overview

    The benefits or harms achieved by a business is determined in part by the choices that business leaders make. One important driver of these choices is a leader's view of the purpose of business. This note: (1) outlines the history of debates about corporate purpose, (2) calls out some myths that persist in the way that people think about corporate purpose, and (3) introduces a view of business called "managing for stakeholders" that has become increasingly influential.

  • Learning Objectives