Dean Panel Response: “What is the Purpose of Business?”

Abstract

The very public ethical failures in business over the past two decades have led many to point the finger of blame at business schools. Some have argued that a business education does not effectively teach ethics; in response business ethics, either as a topic within classes and/or as a standalone class, has become de rigueur in business schools around the world. But increasingly, some are suggesting that the shareholder model itself-best advocated by Milton Friedman, who argued that the singular responsibility of business is to maximize profit, and regularly taught in business schools-is ultimately at the heart of many of the business scandals in recent years. In this chapter, three business school deans from three different continents, Philippe Naert, Indira Parikh, and Jeff Van Duzer, grapple with the question, “What is the purpose of business?” While each of them has a unique perspective shaped by a specific history, culture, and religion, directly or indirectly they all challenge the Friedman doctrine that the purpose of business is only to increase return to the shareholder. We present essays from each of these participants capturing three different perspectives on this question.