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    In a properly functioning economic market where does the economic value created by firms go? In other words who gets it? Why?Think aboutthe phrase properly functioning economic marketin the previous sentence. What does this mean?This assumption (ina properly functioning economic market. . .)is intendedtoimply that Figure 1 is a closed system (i.e.that it’s possible for example for individual firmsto operate in a market context withoutproducing externalities positive or negative). Is this really possible?For examplegiven that firm behavior has the potentialto contribute to the stability (or instability)of the largereconomic systemitselfdoesn’t this imply that firmsalways have somesystemic or socialresponsiblity?Systemic analysis is about understanding the role of firms in the larger social system. Take a look at the rectangle labeled firms in the above sketch. What kind of control if any should society be able to exercise over what goes on in this box? How can (do) firms exercise influence over society with regard to societal attempts to control firm behavior (see arrows #4 and #5 above)?

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