In the age of AI, purpose is becoming a business strategy
AI, social media and universal connectivity are making corporate behavior radically more transparent.
In today's age of artificial intelligence, corporate purpose is evolving into a key business strategy. The transparency brought about by advancements such as AI, social media, and universal connectivity has transformed the way companies operate. In the past, businesses held significant information asymmetry, knowing more about their inner workings than their external stakeholders.
However, the current "Glass-house economy" has made corporate behavior far more visible and scrutinizable. Supply chains, worker treatment, environmental impacts, and executive actions are all more accessible and subject to public scrutiny. This shift in transparency changes the economics of purpose for business leaders. Previously, the primary goal of a company was to maximize shareholder returns, a notion popularized by Milton Friedman.
Yet, with the new transparency landscape, companies must now balance maximizing profits with maintaining positive corporate behavior that resonates with their stakeholders.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
