BUS 101 Lecture Notes - Lecture 5: Corporate Social Responsibility, Solidarity Lending, Benefit Corporation
30 Sep 2015
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Document Summary
Corporate power is the capability of corporations to influence government, the economy, and society, based on their organizational resources. Iron law of responsibility says that in the long run, those who do not use power in ways that society considers responsible will tend to lose it. Corporate social responsibility means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. Being socially responsible by meeting the public"s continually changing expectations requires leadership at the top of the corporation. Enlightened self-interest is where actions taken by avon are example of a business organization"s leaders being guided by this. Imposes hidden costs passed on to stakeholders. Places responsibility on business rather than individuals. Reputation refers to desirable or undesirable qualities associated with an organization or its actors that may influence the organization"s relationships with its stakeholders.
