If firms are social institutions that must identify with the values of society, then:

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If firms are social institutions that must identify with the values of society, then they must adapt to changes in societal values in order to remain in good standing with consumers and stakeholders. This means that their strategies and behaviors must change accordingly. Shareholders may choose to invest elsewhere if their values are not met, but this is not the only factor that firms must consider. Additionally, firms do have a responsibility to make a profit, but this can be done in a way that aligns with societal values. There is not necessarily a need to have additional members of society on the board of directors, although there may be benefits to having diverse perspectives represented.

If Firms Are Social Institutions That Must Identify with the Values