KEY WORDS
- Capitalism: an economic system based on private ownership of how
things are made and sold, in businesses completely free with each
other to make profits
- Shareholder: a person who has invested money in a business in return
for a share in the profits
- Stakeholder: a person who is affected by or involved in some form of
relationship with the business
- Consumerism: a set of social beliefs that put a very high value on
acquiring material things
, Milton Friedman
Shareholder theory: a company's only ethical responsibility is to
maximize profits for its shareholders, if it follows the law.
He believed that businesses should not engage in social or ethical
issues beyond what benefits their owners
Corporate social responsibility (CSR) is a distraction from a business's
true purpose and could harm economic efficiency.
The only responsibility the company has is to make money, to spend
money on CRS projects was stealing money from shareholders.
“Only people have responsibilities, a corporation is an artificial person”
Crane & Mattern
Defined stakeholders as an individual or group which either:
- Is harmed by or benefits from the corporation
- Whose rights can be violated, have the right to be respected by the
corporation
“Stakeholder pressure may oblige companies to do what is right, just
and fair, even when they are not compelled to do so by a legal
framework”
Corporate Social responsibility (CSR)
Corporate social responsibility (CSR): a sense that businesses have
wider responsibilities than simply to their shareholders, including the
communities they live and work in and to the environment.
In larger companies nobody is liable for everything the business does
Managers have some responsibility to shareholders to make money
- Capitalism: an economic system based on private ownership of how
things are made and sold, in businesses completely free with each
other to make profits
- Shareholder: a person who has invested money in a business in return
for a share in the profits
- Stakeholder: a person who is affected by or involved in some form of
relationship with the business
- Consumerism: a set of social beliefs that put a very high value on
acquiring material things
, Milton Friedman
Shareholder theory: a company's only ethical responsibility is to
maximize profits for its shareholders, if it follows the law.
He believed that businesses should not engage in social or ethical
issues beyond what benefits their owners
Corporate social responsibility (CSR) is a distraction from a business's
true purpose and could harm economic efficiency.
The only responsibility the company has is to make money, to spend
money on CRS projects was stealing money from shareholders.
“Only people have responsibilities, a corporation is an artificial person”
Crane & Mattern
Defined stakeholders as an individual or group which either:
- Is harmed by or benefits from the corporation
- Whose rights can be violated, have the right to be respected by the
corporation
“Stakeholder pressure may oblige companies to do what is right, just
and fair, even when they are not compelled to do so by a legal
framework”
Corporate Social responsibility (CSR)
Corporate social responsibility (CSR): a sense that businesses have
wider responsibilities than simply to their shareholders, including the
communities they live and work in and to the environment.
In larger companies nobody is liable for everything the business does
Managers have some responsibility to shareholders to make money
