LAW 533 Chapter Notes - Chapter 1: Responsible Care, Consumer Protection, Externality
28 Sep 2016
School
Department
Course
Professor
Document Summary
Chapter 01: an overview of csr, ethics, and law landscape. Law helps in three ways: to constrain, to facilitate, and to prescribe the csr activities of firms. Constrain: law constrains firms through regulatory laws pertaining to issues such as worker health and safety, consumer protection, and pollution control. Firms cannot be considered socially responsible if they don"t meet these laws. Facilitate: when canadian firms require its third-party suppliers in developing countries to meet certain environmental or social conditions if they wish to remain clients of the firm, contract law is used as a mechanism to facilitate csr behaviour. Prescribe: examples include reporting requirements whereby firms much publicly disclose what they are doing to improve communities or the environment. First criticism: if a for-profit company were to simply devote itself to good causes, it would probably go out of business. Second criticism: some firms engage in csr window dressing they talk the talk , but don"t necessarily walk the walk .
