International Journal of Social Science & Economic Research
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Title:
Beyond Profit vs Purpose: Why Governance Shapes the Social Outcomes of Market Incentives

Authors:
Dhruti Rajiv

Journal: International Journal of Social Science and Economic Research (IJSSER)
ISSN: 2455-8834
Volume: 11
Issue: 9
Publication Date: September 2026
DOI: 10.46609/IJSSER.2026.v11i09.037

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Dhruti Rajiv

MLA 8
Rajiv, Dhruti. "Beyond Profit vs Purpose: Why Governance Shapes the Social Outcomes of Market Incentives." Int. j. of Social Science and Economic Research, vol. 11, no. 9, Sept. 2026, pp. 5095-5107, doi.org/10.46609/IJSSER.2026.v11i09.037. Accessed Sept. 2026.
APA 6
Rajiv, D. (2026, September). Beyond Profit vs Purpose: Why Governance Shapes the Social Outcomes of Market Incentives. Int. j. of Social Science and Economic Research, 11(9), 5095-5107. Retrieved from https://doi.org/10.46609/IJSSER.2026.v11i09.037
Chicago
Rajiv, Dhruti. "Beyond Profit vs Purpose: Why Governance Shapes the Social Outcomes of Market Incentives." Int. j. of Social Science and Economic Research 11, no. 9 (September 2026), 5095-5107. Accessed September, 2026. https://doi.org/10.46609/IJSSER.2026.v11i09.037.

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ABSTRACT:
The profit motive lies at the core of market economies, shaping firm behavior, innovation and resource allocation. While classical economic theory positions profit seeking as a driver of efficiency and societal benefit, growing evidence highlights its potential to generate negative outcomes, including short-termism, externalities and ethical failures. This paper examines the extent to which the pursuit of profit aligns with societal welfare and argues that the central challenge lies not in profit itself, but in whether institutions can constrain its harmful incentives while preserving its capacity to generate efficiency and innovation. Drawing on economic theory and case studies across private, public and non-profit sectors, the analysis demonstrates that governance structures, leadership incentives and accountability mechanisms play a decisive role in shaping outcomes. By shifting the focus from ownership models to governance quality, the paper offers a more nuanced understanding of how profitable systems can be structured to promote sustainable and socially beneficial outcomes.

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