Reinventing management purpose: the radical and virtuous alternatives

Purpose – One of the lessons of the Great Recession is that managing for shareholder value can result in damage to other stakeholders. This paper seeks to articulate a new purpose for the firm that is more legitimate than maximizing financial returns for shareholders. Design/methodology/approach – The paper examines the various management alternatives: modify the shareholder value strategy; become socially responsible; and adopt radical management practices. Findings – A central question is whether the alternative management models will contribute to corporate longevity. The paper suggests an alternative approach: the virtuous corporate. Originality/value – The paper looks at the virtuous corporation which would balance the need to reward external stakeholders with relentless attention to internal excellence and virtue.