Reflection

Corporations as Critical Social Institutions

My current research examines the extent to which corporations are emerging as critical social institutions. Over the past century, and especially in recent decades, firms have taken on greater social and political responsibilities. They have become more sophisticated actors, influencing law, politics, and society. At the same time, governments have been assigning a wider range of important social tasks to corporations. As a result, corporations may evolving into central societal institutions. This development would have profound implications and require new perspectives on strategy, governance, business and society, free markets, and shareholder versus stakeholder debates. If corporations are becoming key social institutions, the rationale for capitalism may shift from efficient wealth production to the development of extraordinary management capabilities and multipronged social contributions.