Why Do Companies Exist? How the Conception of the Nature of the Firm Impacts Sustainable Development.

Abstract

This paper focuses on explaining, in accordance with current literature, the generalized conception of the firm's nature within the capitalist system, as well as how the firm's nature and not necessarily the system, is a fundamental factor in the increase of inequality and damage to the environment. Based on empirical evidence, the author also explains how the conception of this nature leads the company and its members to withdraw from the society to which they belong. Finally, he makes a new proposal on the nature of the firm and its purpose, which is necessary due to current times and the challenges that humanity faces.