User:Neuralia/sandbox4

From Wikipedia, the free encyclopedia

Business purpose refers to the wider, long-term goal of a commercial enterprise, which may substantially differ from its mission statement, the latter generally representing a simplified, operational version of the former.[1][2] The concept makes part of the ethical framing of a business, together with notions such as vision, mission, and values[3][4] The term gained media attention in recent years as a result of Milton Friedman's essay on the subject, originally published in the New York Times Magazine in 1970.[5] Business purpose has been proposed to exist in one of two forms: current purpose, or mission; and future purpose, or vision.[6][7][8]

History[edit]

Aristotle is said to have implicitly contemplated the importance of business ethics and business purpose in his Nicomachean books, where he describes the moral and intellectual traits accompanying virtuous human behavior in society.[4][9] The idea initially put forward by Friedman, that the purpose of firms is to maximize profits or market value,[5] was subsequently challenged by authors like Carson in 1999,[10] and Jordi in 2010,[11] who questioned the limitations of this perspective, contending that, since a firm made up of people to serve other people, the purpose of a business must also englobe the company's "responsibilities towards people, clients, shareholders, and society at large". In turn, Drucker ascertains that the purpose of a business must ultimately lie in society, where it belongs.[12] Thus, in parallel with the advance of corporate social responsibility theory, the concept of business purpose has been widened to include not only the basic role of the organization, but also other reasons for being, its vision, values, scope of business, public image, and beyond.[1][13] The presence of noble purposes in the ethical framework of a company is now regarded as a crucial component of virtuous leadership.[14] In turn, Mourkogiannis ascertained that company purpose is key to firm success: "given the dynamics of motivation and behavior, ideas are what cause companies to go from good to great, rather than organization and structure", he has affirmed.[15]

Further reading[edit]

  • Drucker, Peter F. (1985). Business Purpose and Business Mission, in "Management: tasks, responsibilities, practices" (1st ed.). New York: Harper & Row. pp. 74–94. ISBN 978-0060110925.
  • Ellsworth, Richard R. (2002). Leading with purpose : the new corporate realities. Stanford: Stanford Business Books. ISBN 0-8047-4385-1.
  • Mourkogiannis, Nikos (2006). Purpose : the starting point of great companies (1st ed.). New York: Palgrave. ISBN 1-4039-7581-7.
  • Spence, Roy (2011). It's not what you sell, it's what you stand for : why every extraordinary business is driven by purpose. Haley Rushing. New York, N.Y.: Portfolio/Penguin. ISBN 978-1-59184-447-1. OCLC 751805918
  • Handbook of the philosophical foundations of business ethics. Christoph Lütge. Dordrecht: Springer. 2013. ISBN 978-94-007-1494-6.
  • Mackey, John (2014). Conscious capitalism : liberating the heroic spirit of business. Raj Sisodia. Boston, Mass.: Harvard Business Review Press. ISBN 1-62527-175-1.

References[edit]

  1. ^ a b Salem Khalifa, Azaddin (2012-08-03). "Mission, purpose, and ambition: redefining the mission statement". Journal of Strategy and Management. 5 (3): 236–251. doi:10.1108/17554251211247553. ISSN 1755-425X.
  2. ^ "Vision, mission and purpose statements – what is the difference?". www.effectivegovernance.com.au. Retrieved 2022-03-05.
  3. ^ Vallance, Elizabeth (1995). Business ethics at work. Cambridge [England]: Cambridge University Press. ISBN 0-521-40535-1. OCLC 31045995.
  4. ^ a b Kenny, Graham (2014-09-03). "Your Company's Purpose Is Not Its Vision, Mission, or Values". Harvard Business Review. ISSN 0017-8012. Retrieved 2022-03-07.
  5. ^ a b Friedman, Milton (1970-09-13). "A Friedman doctrine‐- The Social Responsibility Of Business Is to Increase Its Profits". The New York Times. ISSN 0362-4331. Retrieved 2022-03-05.
  6. ^ Conger, Jay A. (1991-01-01). "Inspiring others: the language of leadership". Academy of Management Perspectives. 5 (1): 31–45. doi:10.5465/ame.1991.4274713. ISSN 1558-9080.
  7. ^ Ellsworth, Richard R. (2002). Leading with purpose : the new corporate realities. Stanford: Stanford Business Books. ISBN 0-8047-4385-1. OCLC 49775350.
  8. ^ Horwath, Rich. "Discovering Purpose: Developing Mission, Vision & Values" (PDF). strategyskills.com.
  9. ^ Handbook of the philosophical foundations of business ethics. Christoph Lütge. Dordrecht: Springer. 2013. ISBN 978-94-007-1494-6. OCLC 813298573.{{cite book}}: CS1 maint: others (link)
  10. ^ Carson, Thomas (1993). "Friedman's Theory of Corporate Social Responsibility". Business & Professional Ethics Journal. 12 (1): 3–32. ISSN 0277-2027.
  11. ^ Jordi, Canals L. (2010-12-01). "Rethinking the firm's mission and purpose". European Management Review. 7 (4): 195–204. doi:10.1057/emr.2010.11.
  12. ^ Drucker, Peter F. (1985). "7". Business Purpose and Business Mission, in "Management: tasks, responsibilities, practices" (1st ed.). New York: Harper & Row. pp. 74–94. ISBN 978-0060110925. OCLC 701417.
  13. ^ Rangan, V. Kasturi; Chase, Lisa; Karim, Sohel (2015-01-01). "The Truth About CSR". Harvard Business Review. ISSN 0017-8012. Retrieved 2022-03-08.
  14. ^ Joly, Hubert (2021-06-01). "THE CASE FOR PURPOSEFUL LEADERSHIP". Leader to Leader. 2021 (101): 12–16. doi:10.1002/ltl.20585. ISSN 1087-8149.
  15. ^ Mourkogiannis, Nikos (2008). Purpose : the starting point of great companies. Basingstoke: Palgrave Macmillan. ISBN 978-0-230-60530-5. OCLC 181601151.
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