The purpose of the modern corporation: a holistic view

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.

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