What is the Purpose of the Corporation?

Share this & earn $10
Info Frank Bold
Published at : 08 Nov 2020
4643 views
31
0

In earlier times, corporations were not only about generating profits. They combined skills, efforts and capital of many different people to undertake public works such as supplying water to cities, building bridges or railroads. They were limited in size and they did not enjoy limited liability.

Corporate culture started shifting in the 1970s, when US scholars promoted the idea of maximising shareholder value (MSV) as a company’s sole purpose. This belief developed by economists such as Milton Friedman and Michael Jensen at the University of Chicago has led to a focus on quarterly earnings and short-term share price as the main basis for investment and business decision-making. The idea has also misled many to believe that shareholders own companies, which is not true under the law of any known country.

However, MSV is now embedded in business thinking and education, incentivised through regulation and it is pushing companies to extract value instead of creating it.

The eventual formulation and recognition of a new understanding of the purpose of the corporation will create a space for a discussion on the regulation of externalities and is essential for a change of our economic system as a whole. Vanguard companies and investors are already leading the way. It’s up to all stakeholders to re-imagine and create corporations ready to face 21st century challenges.

Video animation created by Mr.Lee: www.mrlee.tv

Background information available here: http://www.purposeofcorporation.org/en/news/5009-behind-the-purpose-of-the-corporation-infographic

Corporate Governance for a Changing World: Report of a Global Roundtable Series
https://issuu.com/purposeofcorporation/docs/corporate_governance_for_a_changing
Purpose of corporationCorporate PurposeCorporate Governance

What is a Focus Group Discussion?

What is a Focus Group Discussion?

Jack Ma: Love is Important In Business | Davos 2018

Jack Ma: Love is Important In Business | Davos 2018

RESPECT | Official Teaser Trailer

RESPECT | Official Teaser Trailer

Applying for a post graduation work permit within Canada

Applying for a post graduation work permit within Canada

Dusty Springfield-In Private-lyrics version.wmv

Dusty Springfield-In Private-lyrics version.wmv

SCUMP TURNS ON CLAYSTER! FORMAL LAUGHTAGE! (Best PRO Moments Pt18)

SCUMP TURNS ON CLAYSTER! FORMAL LAUGHTAGE! (Best PRO Moments Pt18)

UV#22 Track from scratch: Zyn-Fusion and Ardour

UV#22 Track from scratch: Zyn-Fusion and Ardour

Shady Business Behavior You Find Very Often

Shady Business Behavior You Find Very Often

Learn Colors With Hathi Raja Elephant |  colours for kids

Learn Colors With Hathi Raja Elephant | colours for kids

Things NOT to Say to a Girl You Like

Things NOT to Say to a Girl You Like

Method 2 Is A Hulking Robot Straight Out Of Science Fiction (HBO)

Method 2 Is A Hulking Robot Straight Out Of Science Fiction (HBO)

LuvBug - Best Is Yet To Come

LuvBug - Best Is Yet To Come

How to enable Glance for Samsung?

How to enable Glance for Samsung?

2nd puc English Grammar :- Underlined Words in the following extract refer to? 🔥 Easy get 4 marks 🔥

2nd puc English Grammar :- Underlined Words in the following extract refer to? 🔥 Easy get 4 marks 🔥

Commercial Space Flight, The Moon Landing, and Aliens

Commercial Space Flight, The Moon Landing, and Aliens

Faces of Parkinson's

Faces of Parkinson's

Top 5 Gadgets & Accessories For Bike Motorcycle | You Can Buy On Amazon 2020 | Gadgets Under Rs500

Top 5 Gadgets & Accessories For Bike Motorcycle | You Can Buy On Amazon 2020 | Gadgets Under Rs500

Daughters - The Flammable Man (Subtitulada)

Daughters - The Flammable Man (Subtitulada)

Extracranial-Intracranial Bypass for Moya Moya Disease

Extracranial-Intracranial Bypass for Moya Moya Disease

Some Dallas Officers Being Kept Away From Awards Banquet Due To Internal Affairs Investigations

Some Dallas Officers Being Kept Away From Awards Banquet Due To Internal Affairs Investigations

3 ways to use 'due' to talk about the future in English

3 ways to use 'due' to talk about the future in English

Tears Rolled From My Eyes While Watching Her: So Many Of Us Are Victims

Tears Rolled From My Eyes While Watching Her: So Many Of Us Are Victims

Stretch and Elongate your Wash and Go

Stretch and Elongate your Wash and Go

How Many Days Per Week Should You Workout? (MORE THAN YOU THINK!)

How Many Days Per Week Should You Workout? (MORE THAN YOU THINK!)

Streamline Discs Battle!

Streamline Discs Battle!

Lukasz Wenta Wins the 2019 Caber Toss, a breakdown

Lukasz Wenta Wins the 2019 Caber Toss, a breakdown

X Ambassadors - Renegades (Lyric Video)

X Ambassadors - Renegades (Lyric Video)

Bob the Builder | Switch And Fix | Advertisement

Bob the Builder | Switch And Fix | Advertisement

1983 Triumph Acclaim Goes For a Drive

1983 Triumph Acclaim Goes For a Drive

Antique  & Ancient Beads - Jamey Allen on WorldStreams

Antique & Ancient Beads - Jamey Allen on WorldStreams

Админские Будни - Alive #58

Админские Будни - Alive #58

Sub Focus & Dimension - Desire

Sub Focus & Dimension - Desire

Days Gone - I'll Save Some For You - Clear the Horde at the Old Sawmill

Days Gone - I'll Save Some For You - Clear the Horde at the Old Sawmill

Capturing Xanana

Capturing Xanana

How Can Anyone Be An Atheist? | Manda - Lynchburg, VA | Atheist Experience 22.09

How Can Anyone Be An Atheist? | Manda - Lynchburg, VA | Atheist Experience 22.09

The Group - A Documentary

The Group - A Documentary

Ensure High Protein Powder Review

Ensure High Protein Powder Review

Mars Compared to Earth—Eight basic differences  (Educational)

Mars Compared to Earth—Eight basic differences (Educational)

Ty Dolla $ign - Expensive (feat. Nicki Minaj) [Lyric Video]

Ty Dolla $ign - Expensive (feat. Nicki Minaj) [Lyric Video]

The Chemical Brothers - Believe

The Chemical Brothers - Believe

Wiley Report: LeBron told AD after Finals: "We've got more work to do"

Wiley Report: LeBron told AD after Finals: "We've got more work to do"

How To Create an Expense Tracker Log in Notion - Notion Tutorial

How To Create an Expense Tracker Log in Notion - Notion Tutorial

Operational definition of medication error for EU reporting requirements

Operational definition of medication error for EU reporting requirements

The Amazing World of Gumball - Make The Most of It - (Official Music Video)

The Amazing World of Gumball - Make The Most of It - (Official Music Video)

John Cleese - How to irritate People - Parents [Legendado]

John Cleese - How to irritate People - Parents [Legendado]

TNT X DJ Isaac - The Realm

TNT X DJ Isaac - The Realm

The af-FORD-able CAMPER VAN? Ford Transit Conversion - Wild Camp Quest

The af-FORD-able CAMPER VAN? Ford Transit Conversion - Wild Camp Quest

Sullair - More Durable Together

Sullair - More Durable Together

Voight Gets Kidnapped | Chicago P.D.

Voight Gets Kidnapped | Chicago P.D.