ABSTRACT
The confusion over the meaning of the words 'corporate objective' is responsible for more planning disasters than almost anything else. Some corporate planners seem to think that corporate objectives are so philosophical as to be not worth discussion and they leave them out entirely. A corporate conduct statement is any general rule that regulates one's actions on ethical grounds, such as being an excellent employer. The chapter shows that the corporate purpose of all companies is to make a satisfactory return on the owners' investment', or words to that effect. There are three elements here: the intended beneficiaries are the owners, the intended benefit is return on their investment, and the criterion by which they will judge the management is whether their return is 'satisfactory'. The Stakeholder Theory says that, on the contrary, organizations do, and should, benefit a wide range of people.
