Managing for Stakeholders and the Purpose of Business

Case Solution

R. Edward Freeman, Bidhan L Parmar
Darden School of Business ()

The benefit or harm achieved by a company is determined in part by the decisions that business leaders make. An important factor in these decisions is the manager’s vision of the company’s purpose. This note: (1) describes the history of business purpose debates, (2) invokes some myths that persist in the way people think about business purpose, and (3) presents a vision of the business, which is known as “stakeholder management” has become increasingly influential.

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