A purpose-driven theory of the corporation?

Blanche Segrestin (), Kevin Levillain () and Armand Hatchuel ()
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Blanche Segrestin: CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique
Kevin Levillain: CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique
Armand Hatchuel: CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique

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Abstract: In the debate on the purpose of the corporation, corporate law plays an important role as the corporate entity, because the owner of the assets, can pursue objectives that differ from those of the shareholders. But can corporations be neutral despite shareholders being the only associates or are they necessarily shareholder-oriented? In this article we show how new profit-with-purpose corporate forms (such as FPC and Benefit corporation) revisit the debate on corporate purpose. These corporate forms confirm that corporate law allows but doesn't protect any corporate purpose. By locking a mission in the charter, they protect alternative purposes while still ensuring managerial accountability. We develop a purpose-driven model of the corporation, which, we argue, generalizes model of the corporation, revives the original corporate model and is more consistent with the managerial function. We also develop further avenue for research in management science.

Keywords: corporation; purpose; governance; corporate law; management; shareholder; stakeholder (search for similar items in EconPapers)
Date: 2015-04-22
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Published in The nature and governance of the corporation, WINIR, Apr 2015, lugano, Switzerland

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01148198

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