3 Categories of Corporate Purpose

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3 Categories of Corporate Purpose
Anneke Zwart, Moderator
In his article of 1991, Campbell also argues that if the overall idea of purpose exists, organizations can be categorized into three categories of purpose:
1. Some organizations say that they operate in the interest of shareholders wealth, these companies want to maximize shareholders value. See the page on Shareholder Value Perspective for more info.
2. Other organizations do not believe that operating only for the benefit of shareholders should be the purpose. They point out that companies are also operating to maximize stakeholders’ value, for example consumers, laborers, suppliers and the society. See the page on Stakeholder Value Perspective for more info.
3. Some organizations believe that even the maximization of stakeholders’ value should not be a solely purpose of an organization. They have tried to find a greater purpose than the combined wealth of stakeholders, thereby seeking a purpose to which all stakeholders that contribute to this purpose are proud of: a higher ideal. An example of a higher ideal can be Corporate Social Responsibility. See also the page on Moral Purpose for 4 subtypes of this 3rd category.
Campbell, A. And Yeung, S. (1991) “Creating a Sense of Mission”, Long Range Planning, Vol.
24, No. 4, pp. 10-20.
Muzondo, N. (2012). “Mission Analysis and the Ashridge Mission Model: An Operation Conceptual Framework”. Universal Journal of Management and Social Sciences Vol. 2, No.5



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