The purpose of the modern corporation: a holistic view
ISSN: 0258-0543
Article publication date: 11 February 2020
Issue publication date: 2 March 2020
Abstract
Purpose
This paper aims to examine the shareholder versus stakeholder debate. This paper outlines how businesses are starting to move toward a stakeholder model, and also discusses what must be done to sustain the momentum toward the stakeholder model.
Design/methodology/approach
This paper uses examples from organizations to highlight the momentum toward the stakeholder model.
Findings
This paper suggests that countervailing forces - from financial analysts, institutional investors, and institutionalized practices in many corporations - will need to be overcome if businesses are to succeed in adopting the stakeholder model.
Practical implications
Thus paper discusses the role of educators in the process of changing the mindset of students, executives, and others from a shareholder to stakeholder mindset.
Originality/value
This paper discusses not only the trend toward the stakeholder model of businesses, but also how to sustain the momentum toward this model.
Keywords
Citation
Martin, J.A. and Butler, F.C. (2020), "The purpose of the modern corporation: a holistic view", Strategic Direction, Vol. 36 No. 3, pp. 4-7. https://doi.org/10.1108/SD-08-2019-0163
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited