What is Business Organizing for? – The Role of Business in Society Over Time

Abstract

The purpose of business is a much contested issue. In this paper, I offer a review of the historical development of the role of business in society and examine the general arguments for different perspectives. From an Aristotelian to a Smithian view of the role of business to the more recent discourse on shareholder value maximization and stakeholder value generation. Going beyond that discussion, I am presenting alternative conceptualizations that might help redirect the discussion of what business should be organizing for.

Keywords: Objective function, business purpose, shareholder value, stakeholder value, common good, well being, management education