Free market theory and corporate social responsibility

Corporations as Responsible A Civil Action was originally a novel, but more people have seen the movie, which was distributed by W. One of the memorable scenes is John Travolta playing a hotshot lawyer speeding up a rural highway to Woburn, Massachusetts.

Free market theory and corporate social responsibility

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Three Theories of Corporate Social Responsibility

Starting Rs for 10 pages. The stakeholder theory of CSR. The business ethics theory of CSR. And the shareholder value theory of CSR. Ethical and pragmatic as it ought to be business success assume vast interests of stakeholders than the shareholders interest alone.

Corporations as Responsible

The stakeholder theory emphasizes special social rather than any others unrelated to the corporation. Thus CSR is denoted as a company stakeholder responsibility.

Business ethics theory of CSR The business ethics theory is based on wider social obligation and the moral duty that business has towards society Bigg, This theory justifies CSR on 3 varied but interrelated ethical grounds: Changing and emerging social responsiveness and social expectations to particular social problems.

Eternal or intrinsic ethical values always inspired by Kantian ethics and denoted as some normative and universal principles like social justice, fairness and human rights Corporate citizenship i.

The business ethics theory views CSR more as philanthropic and ethical responsibilities rather than legal and economic responsibilities. CSR initiates where legal obligation declines.

The shareholder value theory of CSR The shareholder value theory a perspective denoted by the Nobel Laureate Milton Friedman argues that only social responsibility of business is to develop its profits while following legal norms. Neoclassical economists like Hayek assert that the function of business is doing business that contributes to society and economy and its function must not be confused with other social functions performed by not for profit organizations and governments.

Otherwise it is not the most effective way of allocating resources in a free market. Economists like agency theorists believe that the corporation owners are its managers and stakeholders as agents have fiduciary duty to serve the shareholders interest rather than any others.

Although maximizing the profit of shareholder is justified as the most significant or only corporate responsibility, corporate social obligations are regarded often as strategic instrument for corporate competitive benefit and more profit gain.

A Stakeholder Approach, Boston: National Conference on CSR:To shed further light on the debate concerning the value and success of corporate social responsibility, this working paper examines the legal status of CSR within the globalised free market framework.

The overarching question is how and to what extent free market theory influences the success of.

Socio-economic School

What is the free-market theory of corporate responsibility for consumers, and what are some of the problems associated with this view? Compare this view with the “social contract” and stakeholder perspectives of corporate social responsibility%(1).

Most of the discussion of social responsibility is directed at corporations, so in what follows I shall mostly neglect the individual proprietors and speak of corporate executives.

Free market theory and corporate social responsibility

In a free-enterprise, private-property sys­tem, a corporate executive is an employee of the owners of the business. Corporate social responsibility as a specific theory affirms that corporations are entities with economic, legal, ethical, and philanthropic obligations.

Corporate social responsibility - Wikipedia

Corporations responsible for a triple bottom line seek sustainability in the economic, social, and environmental realms. - Roots in free market economic theory - Most influential theory of corporate responsibility in the last century - Milton Friedman, Nobel-prize winning economist "[In a free economy], there is one and only one social responsibility of business - to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.

Corporate social responsibility or CSR is a concept that provides a framework for defining the mission and vision of a business organization, as well as for expressing the .

Free Markets or "Corporate Social Responsibility"