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Management article
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Reference no. SMR54420
Published by: MIT Sloan School of Management
Published in: "MIT Sloan Management Review", 2013
Length: 4 pages

Abstract

The authors argue that the best way to maximize profits over the long term is to not make them the primary goal of a company. Companies need a purpose that transcends making money; they need sustainability strategies that recognize that you can make money by doing good things rather than the other way around. The authors looked at the Tata Group, a wealthy successful company in India, as an example of how and why a company became wealthy and successful was because their company’s mission was to help the communities in which it operated. The authors identify the reasons why it is urgent to develop sustainable business practices and technologies that are not only profitable for companies themselves but also, on a broader level simultaneously deliver economic, social and environmental benefits for the developing, as well as the developed, worlds.

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Abstract

The authors argue that the best way to maximize profits over the long term is to not make them the primary goal of a company. Companies need a purpose that transcends making money; they need sustainability strategies that recognize that you can make money by doing good things rather than the other way around. The authors looked at the Tata Group, a wealthy successful company in India, as an example of how and why a company became wealthy and successful was because their company’s mission was to help the communities in which it operated. The authors identify the reasons why it is urgent to develop sustainable business practices and technologies that are not only profitable for companies themselves but also, on a broader level simultaneously deliver economic, social and environmental benefits for the developing, as well as the developed, worlds.

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