B A 300 Chapter Notes - Chapter 11: Capitalism, Externality, Greenwashing
Document Summary
More than economic institutions, should go beyond profit. 3 reasons corporations should care about social responsibility. Based upon recognition that business must use the power responsibility in society or risk losing it. Smart ceos have benefited from talking with reasonable reform groups. Managers scan envt and look out to avoid economic harm, maintain legitimacy, and ensure a good corporate reputation. Might be risky if it is seen as just reactive. Responsible executives have an ethical duty to care about multiple stakeholders because it is the right thing to do. Offers managers a strong basis for making decisions about which stakeholders and social responsibility issues should have their attention and resources given the many different options available. Porter and kramer say to analyze business for 2 things. Initiatives where firm can do good by providing unique opportunities to create shared value for business and society.
