Designing Social Value Architecture for the For-Profit Company

For-profit companies are typically excluded from analyses of the social economy, and with good reason. The concept of shareholder primacy is deeply rooted within the modern corporation's organizational design -- pursuing anything other than shareholder wealth is tantamount to bad governance (Berle & Means, 1932). Social gains that occur as a result of corporate actions are always ancillary or subordinate to the primary goal of profit-making. In order for businesses to effectively embed social value creation in their architecture, it is vital that company directors be permitted to consider stakeholder interests in corporate decision making. In this context, stakeholders are defined as constituents other than shareholders, including end-users, clients, customers, employees, suppliers, and creditors, as well as the broader community and environment.