Toward a theory of plural business purposes

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.