The business foundations of social economic progress

Emili Grifell-Tatjé, C. A.Knox Lovell, Pau Turon

Research output: Contribution to journalArticleResearch

1 Citation (Scopus)

Abstract

© 2018 ACEDE We revisit the recently revived concept of social economic progress. We take a microeconomic perspective and address economic progress where it originates, with value creation at individual businesses. We begin with a brief history of thought on the concept. We continue by analyzing how a business creates private value through productivity growth, which is a necessary but not sufficient condition for a business to create social value. We then adopt an analytical approach to value creation from the perspective of a business, by analyzing how the creation of private value has implications for the distribution of income and creates social costs and benefits. We argue that a business creates social value, thereby contributing to social economic progress, only if it creates private value, it distributes the value it creates in a balanced way, and it generates social benefits having greater value than the value of the social costs it generates.
Original languageEnglish
Pages (from-to)278-292
JournalBRQ Business Research Quarterly
Volume21
DOIs
Publication statusPublished - 1 Oct 2018

Keywords

  • Income distribution
  • Labor displacement and re-employment
  • Managerial performance
  • Social cost
  • Social economic progress
  • Value creation

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