MGMT 4300 Chapter Notes - Chapter 3: Microsociology, Fiduciary, Corporate Social Responsibility
11 Nov 2017
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Summary of (cid:862)corporate social responsibility theories: mapping the territory(cid:863) Give business the maximum amount of freedom; maximize shareholder values. Cause-related marketing: strategic philanthropy that corporations can use. Corporation is an instrument for wealth creation. Only the economic aspect of the interactions between business and society are considered. Only social impacts that are consistent with wealth creation are considered. Csr is a means to the end of profits. Maximizing shareholder value: measured by share price leads to short-term profits orientation, any investment in social demands that would increase shareholder value should be taken, agency theory. Achieving competitive advantage: produces long-term profits, social investments in a competitive context. Philanthropic activities is the only way to increase competitive advantage and creates greater social value. Activities closer to mission allow for greater wealth. I. e. when a telecom company teaches computer administration to students of the local community: natural resource-based view of the firm and dynamic capabilities.
