The Purpose of Corporate Purpose or the End of the Business Corporation

Abstract This chapter canvasses the recent surge of interest in the notion that business corporations ought to pursue a broad, pro-social ‘corporate purpose’ rather than focus narrowly on profits or shareholder wealth or value maximization, although the call for corporations to serve society directly (and not merely indirectly by increasing societal wealth) is not new. However, the recent interest in the topic may be linked to some specific contemporary issues, including an increased perception of growing income and wealth inequality and the rising threat of climate change. After reviewing these issues, a broad introduction of the plan of the book follows, explaining that the goal is to develop a framework for analysing corporate governance within the modern political and financial context, focusing upon the formation and achievement of goals by enlightened fiduciaries, emphasizing that this short study of the workings and influence of the great and powerful corporation will be undertaken with a constant eye upon the fallible human beings—the directors and officers— behind the corporate curtain.