This is absolutely not true. Only a narrow sect of Chicago-school types etc. really believes this.
The purpose of a company is whatever the powers that be deem it to be.
A company is made up of forces: Investors/Financiers, Executives, Employees, Customers and Suppliers.
Each of those entities can have tremendous influence over the company to the point wherein the might even control it.
For example, Unions wield incredibly power over the auto industry. It exists for them as much as it does for investors. Same for government.
Most good companies have de-facto communitarian intentions far beyond the product and act as responsible members of the community in most regards.
Corporate America today could probably lay off 1/3 of white collar workers without skipping a beat, but they don't - they're not as cold as you may imagine.
Most established companies are 'gears in a bigger picture' and are mostly operational, not innovative, by that I mean they just have to 'keep doing what they are doing' to survive. It's rare that they have new ideas or modalities, that's generally the advantage of new companies. New companies have to 'fight for profit' at the start, so as to find their way into the gears of the economy at which point they have a special leverage/power, but a kind of responsibility as well.
This is absolutely not true. Only a narrow sect of Chicago-school types etc. really believes this.
The purpose of a company is whatever the powers that be deem it to be.
A company is made up of forces: Investors/Financiers, Executives, Employees, Customers and Suppliers.
Each of those entities can have tremendous influence over the company to the point wherein the might even control it.
For example, Unions wield incredibly power over the auto industry. It exists for them as much as it does for investors. Same for government.
Most good companies have de-facto communitarian intentions far beyond the product and act as responsible members of the community in most regards.
Corporate America today could probably lay off 1/3 of white collar workers without skipping a beat, but they don't - they're not as cold as you may imagine.
Most established companies are 'gears in a bigger picture' and are mostly operational, not innovative, by that I mean they just have to 'keep doing what they are doing' to survive. It's rare that they have new ideas or modalities, that's generally the advantage of new companies. New companies have to 'fight for profit' at the start, so as to find their way into the gears of the economy at which point they have a special leverage/power, but a kind of responsibility as well.