BA 3301 Lecture Notes - Lecture 18: Corporate Social Responsibility, Nobel Peace Prize, Stakeholder Theory
Document Summary
Business ethics 2 modern business ethical theories. Objectives: corporate social responsibility, stakeholder theory, corporate citizenship, the trend: integrating the social and the profit, corporate social responsibility (csr) Corporations are typically regarded as artificial persons" in the eyes of the law: have certain rights and responsibilities in society like citizens. Corporations are notionally owned" by shareholders, but exist independently of them: hold own assets, shareholders are not responsible for debts/damages. Managers and directors have a fiduciary responsibility to protect shareholder investment: senior management are expected to hold shareholders" investment in trust and to act in their best interests. Corporate social responsibility - the attempt by companies to meet the economic, legal, ethical, and philanthropic demands of a given society at a particular point in time. Enlightened self interest: companies taking social responsibilities on to promote their own self-interest, the economist (2008) more than 50% of companies see the main reason for engaging in csr is having better brand reputation".
