BUS 010 Lecture Notes - Lecture 3: Corporate Social Responsibility, Moe Williams, Pragmatics
Document Summary
United states, canada, united kingdom, australia: company boards are required to act in the interests of shareholders. Continental european countries: companies legally required to take account of the interests of employees, the state, and the enterprise as a whole. In practice, the extent to which firms take a narrow (shareholder) or broad (stakeholder) view of their purpose is probably more a matter of pragmatics than arbitrary choice. Most successful companies in terms of profits and shareholder value tend to be those that are. Profit & purpose motivated by factors other than profit. Why does the pursuit of profit so often fail to realize its goal: profit will only be an effective guide to management action if managers know what determines profit, lack of corporate motivation. Companies are increasingly accepting responsibilities that extend well beyond the immediate elitist universities? interests of their owners.
