Is it possible to reconcile the economic and social objectives of companies? A critical perspective

Abstract

Purpose This paper aims to examine whether reconciling profit maximization and social welfare as two possible aspirations of company is feasible. Design/methodology/approach The possible corporate goals are presented by drawing an arc from purely profit-maximizing organizations via a combination of profit and social objectives to organizations clearly serving social utility. In addition to this sorting principle, the order of the different positions presented also takes into account the number of goals and goal-setters. Findings The primary finding of the study is that none of the business concepts discussed here met the initial expectations as for economic and social objectives. The study points to the need to redefine the purpose of business within a broader social science framework. Research limitations/implications For a critical perspective, this paper considers only those standpoints that emphasize a certain form of social utility beyond profitability resulting from business activity directly or indirectly. Originality/value In addition to revealing the relationship between the two aspirations, the novelty of the paper lies in the attempt to explore through normative critique and empirical evidence the validity of the expectations regarding the goals.