Corporate Purpose and Sustainable Value Creation

Corporate Purpose and Sustainable Value Creation

Too many companies fall in a vicious cycle of short-term pressures taking action that destroy long-term value and further increase short-term pressures. Perhaps the best way to resist such short-term pressures and stay on the course to business excellence is a strong corporate purpose that is widely understood and shared by employees of an organization.

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Corporate Purpose: The Role of Law and Culture

Corporate Purpose: The Role of Law and Culture

Many companies are now seeking a way to signal their purpose – their reason for being beyond profit. Yet a key barrier that companies face is the dominant rhetoric of shareholder value maximization, which urges managers to focus on short term profits, often at the expense of society and the environment. We ask if new 'purpose-driven' solutions are a response to corporate law being seen as too restrictive, or a response to certain cultural factors that drive behaviour. Our statistical analysis suggests that law and culture both play an important role. 

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