Professional Documents
Culture Documents
Responsibility
Charity Principle
Stewardship Principle
Definition
Business
should give
voluntary aid to societys
needy person and groups
Business,
Type of
activity
Corporate
philanthropy
Voluntary actions to
promote the social good
Acknowledging
Examples
Corporate
Enlightened
philanthropy
interdependence
Balancing the interest and needs of
many diverse groups in the society
self interest
foundations
Meeting legal requirements
Private initiatives to solve Stakeholder approach to corporate
social problems
strategic planning
Social partnerships with
needy groups
Charity Principle
Stewardship Principle
Environmental Protection
The
Environmental
Kuznets
Curve
At relatively low
levels of income the
use of natural
resources and/or the
emission of wastes
increase with
income. Beyond
some turning point,
the use of the
natural resources
and/or the emission
of wastes decline
with income.
Arguments Against
Corporate Social
Responsibility
Lower economic efficiency
and profit.
Imposes unequal costs
among competitors.
Imposes hidden costs
passed on to stakeholders.
Require social skills
business may lack.
Places responsibility on
business rather that
individuals.
Foreign competitors who are the least socially responsible will actually be
rewarded because they will be able to capture a bigger share of the market.
Many social proposals undertaken by business do not pay their own way in
an economic sense; therefore, someone must pay for them. Ultimately,
society pays all costs.
Company chooses to install expensive pollution abatement equipment, the
air may be clearer, but ultimately someone will have to pay.
Stockholders may receive lower dividends, employees may be paid less, or
consumers may be charged higher prices.
By driving up business costs, these regulations often increases prices and
lower productivity, in addition to making the nations tax bill higher.
Business people are not trained primarily to solve social problems.
Business people in charge of solving social problems may lead to
unnecessarily expensive and poorly conceived approaches.