Planning and social responsibility — A reexamination

Abstract

A new ‘public centered’ long-range corporate planning orientation is proposed. Underlying this orientation is the rationale that the main purpose of business activity is the satisfaction of ‘socially desirable’ needs, i.e. needs that are compatible with long run public welfare. Such need satisfaction will tend to bring about improvements in the quality of private and public life. Corporate planning should thus facilitate the performance of business activities designed to achieve the satisfaction of socially desirable needs.

The determination of what are socially desirable needs will be based on public consensus, which corporations can periodically assess, and incorporate into their long range plans. A long-range planning procedure, incorporating social welfare considerations is developed. It is suggested that a planning procedure such as this is essential for the existence of firms in the long run.