Business and Society. Initial Reflections on the Purpose of Business and Concepts For a Broad Perspective

Table of Contents

1. Introduction

1.1 Perception of business in society

1.2 Methodology and structure of the thesis

2. Reflections on the purpose of business

2.1 Assessments about the purpose of business

2.2 Narrow and broad perspective of business

2.3 Arguments for a narrow perspective of business

2.3.1 Relevance of profit maximisation for business

2.3.2 Relationship between business and shareholders

2.4 Arguments for a broad perspective of business

2.4.1 Responsibility of business towards stakeholders

2.4.2 Sustainable operations of business and triple-bottom line

2.5 Discussion of both perspectives and their synergic relationship

3. Concepts for a broad perspective of business

3.1 Overview of concepts

3.2 Focus on the concept of Creating Shared Value

3.3 Evaluation of Creating Shared Value

3.3.1 Evaluation criteria

3.3.2 Business examples for evaluation of Creating Shared Value

3.3.3 Competitive advantage on the basis of Creating Shared Value

4. Conclusion

4.1 Summary

4.2 Recommendations for future research

Objectives and Research Themes

This thesis examines the fundamental purpose of business in society, moving from the traditional focus on profit maximization and shareholder value toward a broader perspective. The primary research goal is to determine how corporations can integrate social responsibility into their core operations to deliver superior value to society without compromising financial performance.

• The evolution of business purpose, contrasting narrow and broad perspectives.
• Theoretical foundations of stakeholder management and sustainable operations.
• Evaluation of "Creating Shared Value" as a strategic framework for modern firms.
• Practical analysis of business initiatives by Nestlé and General Electric.

Excerpt from the Book

Summary of Chapters

1. Introduction: This chapter introduces the growing public mistrust toward big business and defines the thesis's core hypothesis regarding the necessity of a broader purpose for corporate existence.

2. Reflections on the purpose of business: This section categorizes arguments into narrow (shareholder-focused) and broad (stakeholder-inclusive) perspectives, exploring the theoretical foundation for corporate social responsibility.

3. Concepts for a broad perspective of business: This chapter reviews various conceptual frameworks and selects "Creating Shared Value" for an in-depth strategic evaluation using examples from the private sector.

4. Conclusion: The final chapter synthesizes the findings, arguing that business success and societal contribution can be synergistic, and provides suggestions for further academic inquiry.

Keywords

Business Purpose, Stakeholder Theory, Profit Maximisation, Shareholder Value, Corporate Social Responsibility, Creating Shared Value, Triple Bottom Line, Sustainable Development, Competitive Advantage, Value Chain, Conscious Capitalism, Nestlé, General Electric, Strategic Management, Social Responsibility

Frequently Asked Questions

What is the core focus of this thesis?

The work focuses on the changing role and purpose of business in society, arguing that firms must evolve beyond narrow profit maximization to address broader societal needs.

What are the primary themes discussed?

Central themes include shareholder versus stakeholder theory, corporate social responsibility (CSR), sustainable business operations, and the integration of social progress into competitive strategy.

What is the research question driving this study?

The thesis explores why businesses exist and whom they serve, specifically questioning how they can create superior value for society without sacrificing financial viability.

Which methodology is applied?

The thesis utilizes extensive desk research, analyzing peer-reviewed journals, books, and reports to evaluate academic perspectives and practical business models.

What is covered in the main body of the work?

The main body examines the tension between profit-focused and stakeholder-focused business paradigms, evaluates the "Creating Shared Value" concept, and analyzes practical applications by Nestlé and GE.

Which keywords define the research?

Key terms include Corporate Social Responsibility, Creating Shared Value, Stakeholder Theory, and Sustainable Operations.

How is the concept of "Creating Shared Value" (CSV) evaluated in this thesis?

CSV is evaluated based on three specific criteria: performance measurement, successful implementation potential, and its capacity to act as a source of competitive advantage.

Why are Nestlé and General Electric used as examples?

These corporations serve as practical case studies to illustrate how large multinational firms can implement broad-perspective strategies like the "Cocoa Plan" or "Ecoimagination" to align social and economic outcomes.

What is the author’s conclusion regarding competitive advantage?

The author concludes that while CSV initiatives can provide temporary competitive differentiation, they often risk becoming industry standards, shifting the focus from individual firm advantage to broader industry-wide societal improvements.