28 - of the law Enlighten self interest- best company...

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Part One: the context of modern business 1.. Corporate social responsibility Taking account of stakeholders interests Corporate social responsibility (CSR) - balancing the shareholders expectations of max return against other priorities is one of the fundamental problems confronting corporate managements. The shareholder must receive a good return but the legitimate concerns of other constituents (customers, employees, communities, etc) also must have appropriate attention. Responsiveness to STAKEHOLDER. - People who stand to gain or loss by a companies actions Engaging in responsible conduct is usually in the best intrest of a business and will usually add to the bottom line Taking other people intrest into account but of course staying inside the boundries
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Unformatted text preview: of the law Enlighten self interest- best company decisions that will increase worker moral. 2. How can stakeholders influence corporate behavior? Two special terms, exit and voice. • Exit- Has to do with saying “I don’t like it, what this firm is doing wrong.” You as a consumer would not support this firm by buying there products, using their products, etc. Individually you don’t have much power btu if exit start to grow, thousands join together then it becomes significant. Stockholders could sell their share, and employee could quit, union could strike. • Voice- instead of deciding not to leave, but you are going to go outside and protest. You are trying to change the business through pressure through your “voice”....
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This note was uploaded on 09/30/2009 for the course BCOR 1010 taught by Professor Latier,jef during the Spring '07 term at Colorado.

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