Corporate Social Responsibility

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In his influential 1970 article, Milton Friedman protested against the notion of corporate responsibility for corporations. What are his 3 main premises of his argument?
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In his influential 1970 article, Milton Friedman protested against the notion of corporate responsibility for corporations. What are his 3 main premises of his argument?
It is managers' responsibility to act solely in the interests of shareholders
Only human beings have a moral responsibility for their actions.
Social issues and problems are the proper province of the state rather than corporate managers.
A corporation can be morally responsible for its actions, because it has agency independent of its members. The main arguments in support of this point centre on a corporation's internal decision structure and corporate or organisational _______
Culture
It is now generally accepted that business responsibility does extend beyond simply making a profit. What are the business reasons for CSR?
Socially responsible firms may find it easier to attract employees, who may be more committed.
Corporations seen as responsible may attract more and/or more loyal customers.
By engaging in voluntary CSR, corporations may avoid government legislation.
Carroll (1979, 1991) developed a four-part model of CSR to address the nature of business's social responsibilities. According to Carroll's model, which of the following responsibilities does society EXPECT businesses to meet?
society REQUIRES firms to meet their economic and legal responsibilities,
EXPECTS them to meet their ethical responsibilities DESIRES that they meet their philanthropic responsibilities.
CSR can be described as "traditional" or "contemporary". What are the features and their appropriate strategies
"CSR is Bolted On" → Traditional
CSR is primarily reactive → Traditional
CSR is about value creation → Contemporary
CSR is integral to the business model → Contemporary
Crane and Matten's definition of a stakeholder makes it clear that it is impossible to identify a definitive group of relevant stakeholders for any given corporation in any given situation. Nevertheless, a typical representation is possible, and three different models are presented. What stakeholders are included in the stakeholder view of the firm and in the network model of stakeholder theory, but not in the traditional model of managerial capitalism?
Government
T or F: Instrumental stakeholder theory is a theory that attempts to explain how firms take into account stakeholder interests.
False
Since the late 1980s, we have witnessed a growing tendency towards the 'privatisation' of many political functions and processes formerly assigned to governments. What are examples of how people's lives are increasingly controlled and shaped by corporations as well as governments?
The privatization of major public services and publicly owned companies has led to private actors dominating major industries such as media, telecommunications and transport.

Market and industrial liberalization and deregulation has increased the power of private actors: the more strongly the market dominates economic life, the weaker governmental intervention and influence is.

Decisions over employment, lay-offs and relocation are taken by firms, and governments cannot directly control employment levels (though they are made responsible for unemployment).

Globalisation facilitates relocation and potentially makes companies able to engage governments in a 'race to the bottom'

The central problem behind the trends is the issue of democratic accountability in an environment in which decisions affecting people's lives are increasingly taken by firms that are not subject to democratic control.
In order to enhance corporate accountability, corporate social activity and performance should be made more visible to those with a stake in the corporation. The term usually applied to this is
Transparency
Given the emerging role for corporations in the administration of civil, social and political rights, it can be argued that the extended view of corporate citizenship suggests the following definition:
Corporate citizenship describes the corporate function for governing citizenship rights for individuals.
T or F: We have seen a slow decline in the interest in ranking firms according to their corporate social performance.FalseWhat is essential to corporate transparencyComparability of information.The attempt by companies to meet the economic, legal, ethical, and philanthropic demands of a given society at a particular point in time., is often called _________corporate social responsibilityexamples of CSR to the correct element of the CSR "pyramid"Declining a tax loophole → Ethical Responsibilities Donations to local causes → Philanthropic Responsibilities Returning dividends to shareholders → Economic Responsibilities Scrupulously labelling products in accordance with regulations → Legal Responsibilities.What applies to "contemporary CSR?"Focus is on reward of CSR. Markets drive responsiveness. CSR is integrated into the business model.