Home / Lectures / Thomas Donaldson, Wharton
“Toward a Theory of Business.”

Thomas Donaldson, Wharton
Description
Semester:
- Winter 2015
Speakers:
Lecture Time:
Fri, April 3, 2015 @ 1:30 pm to 3:00 pm
Lecture Location:
RoomR1240, Ross School of Business
Speaker Webpage(s):
https://lgst.wharton.upenn.edu/profile/1116/
Introduced By:
No introduction available.
Abstract
This paper attempts to help us answer the questions “What is the purpose of business?” “What
constitutes business success?” “To whom is business accountable?” and “How are we to control
business?” Most would agree that the purpose of business minimally involves the creation of
value, but such discussions are haunted by a blurred double image of “value,” one that confuses
one concept value with a similar but different one. The image of what counts as “value” for an
individual firm is laid atop the image of what counts as value for business in general. Our paper
explains why these two images cannot match and why the resulting blurriness is an example of
the “exception fallacy.” Working toward a theory of business (and not a theory of the firm), we
develop a set of definitions that gives precision to such everyday concepts as “value,”
“exchange” and “business success.” Developing four key propositions, we close by inviting
others to help us understand how to commingle our understanding of firm conduct with an
aspiration for business activity that honors human dignity when we produce, exchange and
distribute our goods and services.
Recording & Additional Notes
Introduced by Management & Organizations PhD student Eun Woo Kim