BUS 207 Lecture Notes - Lecture 12: Hostile Work Environment, Fiduciary, Protected Group
Document Summary
Purpose: positive impact on society and the environment. They consider the impact of their decision on shareholders, workers, community, and the environment. Officers and shareholders still owe a fiduciary duty to shareholders, however, their decisions may reflect the impact on other shareholders. In addition to generating public financial records like other corporations, must file a public report on their social and environmental performance. *think of as a non-profit that makes a profit; allows people to invest and make money on a business that serves a societal goal. Directors must set forth the social purposes of the corporation in the articles of incorporation. Makes it clear to investors/stockholders that they will be making environment/social purpose its priority vs. just having profit as the priority. And protects them against possible lawsuits from stockholders who say that they don"t have their best interests at stake with certain decisions made.
