The Core Responsibility Of A Corporation - 1752 Words

For many years, researchers held that the core responsibility of a corporation was to provide shareholders with financial returns. Carroll (1979) proposed that organizations have other types of responsibilities towards the society. In Carroll’s view, at some stage society has economic, legal, ethical, and other expectations. The essential part of Carroll’s definition of CSR is that a company has four primary responsibilities: to be profitable, observe the law, be ethical, and conduct discretionary activities. Drawing on those four responsibilities Carroll (1991) created a four-level pyramid of CSR and stated that the CSR policy of a company must include all of them. Carroll placed the economic responsibilities at the base of the pyramid, since for a company to operate successfully, it must have a financial return. On the second level were the legal responsibilities which in order to be fulfilled corporations must pursue their economic objectives (Carroll, 1991). Placing the economic and legal responsibilities at the bottom of the pyramid was reasonable because those two are fundamental for a company to be successful. The ethical responsibilities were placed on the third level of the pyramid suggesting that organizations ought to conduct their businesses operations in a fair and appropriate way and ought to protect the stakeholders’ moral rights (Carroll, 1991). The distinction between the legal and the ethical responsibilities is that in the former the norms areShow MoreRelatedTyco Organization1214 Words   |  5 PagesTyco Corporation Management 330 March 20, 2009 Introduction During the course of this paper one will see addressed several issues of responsibilities that the Tyco Corporation must deal with. Some of these issues are ones that they have had to deal with quite recently. The responsibilities that one will see discussed are the legal, social and ethical issues that arise in a company that is nationally known. Legal Tyco provides products and services across the world. Read MoreArgument For Promotion Of Core Csr1635 Words   |  7 Pagespromotion of core CSR. WE MUST PROMOTE CORE CSR vs WE MUST NOT PROMOTE CORE CSR Milton Friedman, in his work titled, â€Å" The Social Responsibility of Business is to Increase its Profits†, emphasizes the role of business in society is to maximize shareholder wealth, and likens any activity misaligned with regard to that mission as â€Å"stealing†. In my argument against Milton Friedman’s â€Å"must-not† engage in core CSR stance, I would like to introduce the argument of expanding the responsibility of businessRead MoreNew Belgium Brewing Company s Social Responsibility Practices Essay1215 Words   |  5 PagesBelgium Brewing Company’s social responsibility practices. 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According to this ideal, it is important for various corporations today to undertake such social activitiesRead MoreRethinking the Social Responsibility of Business Essay773 Words   |  4 PagesJohn Ferguson BMGT 2216 Rethinking the Social Responsibility of Business The ethical issues presented in this case are the different views that each individual has on how the idea of corporate social responsibility (CSR). This dispute is between Mr. Milton Friedman, John Mackey, and T.J. Rodgers; all of which has a different outlook on CSR. The definition of CSR refers to the responsibilities that business has to the society in which it operates and to those actions that a business can be heldRead MoreCorporations Should Pursue Goals Creating Profit For Shareholders1541 Words   |  7 Pages Whether or not corporations should pursue goals besides creating profit for shareholders has long been a matter of debate. For my part, the statement that â€Å"The actions undertaken by a corporation in the pursuit of shareholder wealth are justified, as long as they are not illegal† is valid. The reasons are presented below. To begin with, a corporation is created for the purpose of creating wealth for shareholders. In terms of property rights, shareholders that invested the principal are the jointRead MoreEvaluation: Ethical Perspectives on Social Responsibility Essay1143 Words   |  5 PagesEvaluation: Ethical Perspectives on Social Responsibility This paper evaluates Cohen’s article on social responsibility and considers how his perspective and ideas align in comparison with other management experts including Drucker and Friedman. Some key components that are included in the evaluation are: †¢ A definition of the concept of social responsibility. †¢ What Cohen identifies as the social responsibility of a business to the workers, stakeholders, and society as a whole. †¢ How Cohen’sRead MoreNew Belgium Brewing Essay763 Words   |  4 Pagesbelief. They love nature that’s why they go to Rocky Mountain national park to think about their business. So they decide their core values and beliefs to try to protect environment. 2. Do you agree that new Belgium’s focus on social responsibility provides a key competitive advantage for the company? Why or why not? Yes, I think NBB’s focus on social responsibility is a key competitive advantage. Because only one small detail things make big difference in image. In USA, there is a lot of BeerRead MoreThe Importance Of Corporate Social Responsibility Development1196 Words   |  5 PagesSocial Responsibility development in business landscapeï ¼Å'which is defined as be responsibility to all corporation activities with environment sustainable. Whether a small enterprise or a multinational company, CSR is an integral part of company to promote brand imageï ¼Å'enhance social harmony. And it also become a standard of company working measurement. Internallyï ¼Å'the CSR activities give staff respect and welfare, and for external which can maintain public order. However, in short term, corporation can