Reframing Corporate Purpose: A Historical Perspective

Abstract

This article examines the historical evolution of corporate purpose under the UK royal charters. Utilizing textual analysis, this study reveals that corporate charters were issued to fulfill a public-oriented purpose. The analysis shows that such conception of purpose was explicitly enforced. Employing the case study of the Massachusetts Bay Company, this article illustrates that charter revocations historically stemmed from corporate activities exceeding specified purposes. Contrary to prevalent contemporary discourse emphasizing corporate purpose as a broad goal, this study highlights the importance of law in ensuring a commitment to a limited, well-defined corporate purpose.

Keywords: corporate purpose, UK royal charters, historical perspective, Massachusetts Bay Company, textual analysis

JEL Classification: K00, K2, K22, N80