Purpose is an underlying belief of why an organization exists. It is what mindfully guides how leaders generate value for its stakeholders and create the firm’s competitive advantage. The use of purpose to guide a firm’s activities and benefit stakeholder groups (rather than shareholders) is a newer perspective. It challenges the longstanding belief that the purpose of business is to generate value for its owners. The belief, championed by Milton Friedman, even advocates that a business should not solve social problems.
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