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3.the role of business in society (shareholder view (firm is independant…
3.the role of business in society
shareholder view
firm is independant but owned by SH
manager + dir gave fiducary resp to protect investment
increase profit (FRIEDMAN), politic and eco separate
CARR if complies with law ok, game with own rules, law= standards, ethics = constraint, illusion
COLLINS oxymoron,
STOUT: profit max = choice, mith, own them
corporate citizenship
political implication
government failure (lack of ressources, corruption) unable, unwilling or absent
power and influence
employment
globalisation
privatiosation
deregularisation
self regulation
focus
politics, channel, lobbying
civil, enable (apartheid, ogoni crisi)
social, provide
ex: philantropy, volunteer, homless (M&S), school budget, improve
do not harm approach
resp of buisness in society
B as a pubilic entity, relation to gov anc civil society
role of business
max shareholder value
max stakeholder value
do no harm
resp for hamr
culpability, complicity (direct, benef, silent), capability
response to harm
bystander, usual, innovator, activist
kind of harm
physical, eco, psy, social, societal
why
cutomer satisfaction
employee more attracted and comitted
business reasons
forestall legislation, LT investement, competitive adv ex toms shoes
moral reasons (social, contribution to society, social impact, power)
practical (preduction, consumption, history)
stakeholders view
stakeholder: can affect or is affected by business
principle of org effect (org are resp on effect)
principle ofto violate rights org rights (obligation not )
FREEMAN: stakeholders matter, enabling principle, direcor resp and recourse
prioritize SH with power, legitimacy and urgency
CSR
behave in ethical maner, integrity and transparency
involved in community, support
business should think beyond profit
CAROLL'S 4p
eco < legal < ethical < philan
strategies
traditional CSR
comptemporary CSR