BUS 100 Lecture Notes - Lecture 3: Corporate Social Responsibility, Intangible Asset, Edinburgh International Conference Centre

• School: George Mason University
• Department: Business
• Course: BUS 100
• Professor: pierce

Document Summary

Corporate social responsibility and citizenship: managers have responsibility to their shareholders because the owners of the business have invested their capital in the firm exhibiting the ownership theory of the firm. Arguments for csr: business execs believe that companies should make a profit but should balance this with their social responsibilities, government officials also support csr. Balances corporate power with responsibility: business enterprises possess much power and influence, responsibility must accompany power, iron law of responsibility. Discourages government regulation: csr voluntary socially responsible acts may head off increased government regulation of business, government is already a massive institution whose centralized power and bureaucracy threaten the balance of power in society. Promotes long term profits for business: social initiatives by business produce long run business profits. Improves stakeholder relationships: managers often believe that developing a strong social agenda and series of social programs will improve the firms stakeholder relationships.