PHIL 2600 Lecture Notes - Risk Society, Government Failure, Externality
8 Apr 2014
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Document Summary
Legal status and the ownership of assets. Typically regarded as artificial persons in the eyes of the law. Notionally owned by shareholders, but exist independently of them. Managers and directors have a fiduciary responsibility to protect the investment of shareholders. All organizations manifest a set of beliefs and values that lay out what is generally regarded as right or wrong in the corporation organizational culture. Business reasons (enlightened self-interest: extra and/or more satisfied customers, employes may be more attracted/committed, forestall legislation, long-term investment which benefits corporation. Moral reasons: corporations cause social problems, corporations should use their power responsibly, all corporate activities have some social impacts, corporations rely on the contribution of a wide set of stakeholders in society, not just shareholders. Corporate social responsibility includes the economic, legal, ethical and philanthropic expectations placed on organizations by society at a given point in time.
