Philosophy 2074F/G Study Guide - Final Guide: Triple Bottom Line, Corporate Social Responsibility, Stakeholder Theory
3 Apr 2018
School
Department
Course
Professor
Document Summary
Shareholder theory view that business" purpose is profitability. Corporation group of individuals legally authorized to act as a single entity. Stakeholder any person who has an interest or concern in an organization- ability to affect or be affected by organizations actions. Shareholder any person who bears ownership shares in a company. Shareholder primacy the view that a business manager"s primary responsibility is to the corporations shareholders. Instrumentalist only social responsibility of a business is to increase its profits. Shareholder (stockholder) theory a corporations owners should be the primary beneficiaries of business decisions. Instrumentalist manager"s primary responsibility is to profit-bearers limits of shareholder theory if profit is aim and maximization is production without limit then there are no constrain on ones actions- greed. Aquinas: trade serves desire for profit which shows no limit. Stakeholder theory creating as much value for stakeholders should be the primary consideration of business decisions assume: businesses exist for purposes other than profit.
