AYB311 Lecture Notes - Blackboard, Triple Bottom Line, Natural Capital
Document Summary
Lecture 12 environmental and social reporting and accounting. Generally viewed as impact of a company"s activities on the welfare of society. Can differ between regions in a nation (ie. differences between brisbane and melbourne) and across countries. Has only emerged in the last 20 years. Only role of business is to maximize shareholder investments in a legal manner: voluntary disclosures only necessary to maximise profits (e. g. reduce political costs) Profit maximization and voluntary disclosure are no longer mutually exclusive. Most firms realize they need to have csr to make profits. Traditional view of role of a company"s management: formulation and execution of policies leading to the maximisation of shareholders" wealth: This view widely criticised: frequently suggested management should act in a more socially responsible manner". Advocates of wealth maximisation argue socially responsible activities should not be undertaken unless they are consistent with shareholders" best interests.
