SMG SM 131 Chapter Notes - Chapter 2: Invisible Hand, Socially Responsible Investing, Whole Foods Market

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Matthew Reis

Document Summary

Chapter 2: corporate social responsibility, citizenship, and sustainability. Business for social responsibility (bsr)-organization formed in 1992, fosters socially responsible corporate policies. Csr is seriously considering the impact of a company"s actions on society. Social responsibility requires the individual to consider his/her acts in terms of a whole social system. Business"s commitment to social responsibility increases corporate responsiveness toward shareholders and improve social (stakeholder) performance. Society could best determine its wants and needs through the marketplace. Invisible hand of market transforms self-interest into societal interest. Focuses on society"s expectations beyond what was legally required. Csr -the corporation has not only economic and legal obligations, but also certain responsibilities to society which extend beyond these obligations. The social responsibility of business encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time. Pyramid of csr -from base to top: economic, legal, ethical, philanthropic.