corporate social responsibility
The idea that businesses interact with the organization's stakeholders for social good while they pursue economic goals
iron law of responsibility
In the long run, those who do not use power in ways society considers responsible will lose it.
Broader concept of business as "trustees", who work in the public interest
the idea that the wealthiest members of society should be charitable toward those less fortunate
is the idea that business leaders have an obligation to see that everyone, particularly those in need or at risk, benefits from their firms' actions
phases of corporate social responsibility
Divided into 4 general phases:
Corporate social stewardship, 1950s - 1960s
Corporate social responsiveness, 1960s - 1970s
Corporate/business ethics, 1980s - 1990s
Corporate/global citizenship, 1990s - 2000s
shareholder view factors
The only social responsibility of business is to create shareholder wealth legally and with integrity.
Corporate management cannot decide what is in the social interest.
The costs of social responsibility which do not increase the value of stock, will be passed on to consumers by way of higher prices, or to employees as lower wages, or to shareholders as lower returns.
multiple stakeholers view factors
All customers and employees are treated with dignity.
Investor trust must be honored.
Relationships with suppliers must be based on mutual respect.
Belief in fair economic competition.
Business can contribute to social reform and honor human rights.