BU275 Lecture Notes - Lecture 8: Corporate Social Responsibility, Due Process, The Roots
Document Summary
To be implemented successfully over time, any strategy must command the creativity, energy, and desire of the company"s members. During this chapter we need to ask ourselves a few questions. In whose interest in management acting? (done by looking at management"s role in value creation, capture and distribution) What is management"s central responsibility? (done by looking at management"s role in value creation, capture and distribution) The general manager"s role is to create, capture and distribute value. The chapter focuses on perceiving and reconciling stakeholder interests. In this chapter we assumer the only stakeholders currently are shareholders, customers and employees. Managers have the capabilities to asses a balance but the problem lies in self-interest. The ultimate responsibility for direction and performance of the organization lies with the board of directors, whose mandate is corporate governance. Act honestly and in good faith with a view to the best interests of the corporation.
