Corporate Profit, Entrepreneurship Theory and Business Ethics
AbstractEconomic profit is produced by entrepreneurs, those special individuals able to detect and seize as yet unexploited market opportunities. In general capitalist firms manage to deliver positive profits even in the most competitive environments. They can do so thanks to internal entrepreneurs, a subset of their employees able to drive change and develop innovation in the workplace. This paper argues that the goal of profit maximization is fully consistent with the corporation doing good for society. However, there is little justification for corporations to transfer the whole economic profit to shareholders. Economic agents entitled to receive the economic profit are precisely those who create this profit, namely the internal entrepreneurs.
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Date of creation: May 2013
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Corporate Goal; Entrepreneurship Theory of the Firm; Internal Entrepreneurs; Profit; Social Role of Business; Virtue Ethics;
Other versions of this item:
- Vranceanu , Radu, 2013. "Corporate Profit, Entrepreneurship Theory and Business Ethics," ESSEC Working Papers WP1308, ESSEC Research Center, ESSEC Business School.
- A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
- P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-24 (All new papers)
- NEP-BEC-2013-05-24 (Business Economics)
- NEP-CSE-2013-05-24 (Economics of Strategic Management)
- NEP-ENT-2013-05-24 (Entrepreneurship)
- NEP-HME-2013-05-24 (Heterodox Microeconomics)
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