ABSTRACT
Principle 1 states that Business is social progress. It argues that the for-profit firm is the most important organizational form because it is best able to convert valuable and scarce resources into products that we demand that, persistently, raise the overall standard of living. The incentive to innovate is central to this process, but innovation occurs elsewhere in society, too. Irrespective of its origin, for-profit firms excel when they seek to bring such innovation to market. Integral to this process are the multitude of decisions, laden with ethical and moral implications, that the firm makes every day. While self-interest is a powerful motivator, value is optimized in its broadest sense when the interests of the firm overlap significantly with the interests of its invested stakeholders. SVC represents the mechanism by which these interests are aligned.
