Managing for the Common Good: Rethinking the Business Corporation Beyond Profit-Maximization

This article searches to define a concept of the corporation that can function as the basis for a more sustainable concept of the economy. The chapter aims at discussing the possibility of a concept of the business organization that can deal with global problems of ecological crisis, introducing a sustainable vision of the business organization. In the context, the article proposes a heterodox concept of the business organization moving beyond the traditional neo-classical view of business as only being oriented towards economic returns for owners. The chapter proposes to move beyond the “shareholder corporation” towards a broader, heterodox concept of the “stakeholder corporation”. Given the present crisis of sustainability it is important to rethink the business corporation as situated in the social and cultural context of society. Thus, we need to situate the business corporation within the economy of the good life. With the new focus on the UN’s Sustainable Development Goals (SDGs) businesses need to be directed toward the common good of society. Here, business organizations should contribute to make a difference for society. In order to provide the necessary basis for sharing economy, circular economy and community economics in business, we need a business organization that aims at the common good for human beings and society. Accordingly, the chapter proposes the concept of the stakeholder corporation as the basis for a new economy of responsible corporate citizenship.