Toward a theory of plural business purposes

Abstract

ABSTRACT This article examines the current debate advocating ‘business purpose' as an alternative to the common view that business should focus only on profit maximisation. A legal analysis reveals that ‘business purpose’ should be conceived as embracing a plurality of different normative intentions, goals, and objectives. The article provides a theoretical foundation for further development of a normative account of firms that embraces purposes not only of profit-making but also following the law, taking account of ethical duties, and orienting actions to address social, political, and environmental issues. This understanding provides a foundation for future research to engage policy debates through a method of reflective, iterative normative reconstruction of business laws, principles, and practices.