A Reconceptualisation of the Firm from the Perspective of the Entrepreneur

Abstract

Firms are started for a variety of specific purposes, however, the generally accepted view is that firms exist primarily for the maximisation of shareholder value. Recent developments in the economic literature have recognised the importance of the entrepreneur in shaping and developing the firm, however this recognition appears missed in the CSR literature. We propose that a reconceptualisation of the firm from the perspective of the entrepreneur provides an alternative way to consider CSR. This approach shifts the focus of business activity from the goal of profit maximisation to achieving the purpose for which it was conceived. We suggest that this change of focus conceived identified problems with theories of CSR and is applicable to organisations of all kinds.