Week 5 Stakeholder - Week 5 Normative Stakeholder Debates SOSC 3040 Corporate Social Responsibility Issues raised by stockholder assumptions 1 Line

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Week 5: Normative Stakeholder Debates SOSC 3040 Corporate Social Responsibility
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Issues raised by stockholder assumptions 1. Line between negative and affirmative duties 2. Line between contractual and extra- contractual duties 3. Whether moral minimum includes a positive duty to assist in emergency
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Interpretation of negative duty Many CSR programs could be seen as efforts to mitigate or compensate for externalities (social harms) associated with business activities Simon e.g.: affirmative action by firm as remedy to past discrimination? Therefore consistent with stockholder, as well as stakeholder logic?
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Interpretation of contractual duties Issues: “Fine print”-- long complex contracts with terms that depart from reasonable expectations “Creative” use of restructuring, limited liability and bankruptcy/receivership rules to evade contractual obligations to employees, customers and creditors
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An affirmative duty of emergency assistance? In many jurisdictions, there is an affirmative legal duty to give aid in an emergency Differs from moral obligation to be charitable to somebody but nobody in particular “Kew Gardens principles”
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Kitty Genovese - 1964 Detectives investigating Genovese’s murder discovered that no fewer than 38 of her neighbors had witnessed at least one of her killer’s three attacks but had neither come to her aid nor called the police. The one call made to the police came after Genovese was already dead. Source: http://www.lihistory.com/8/hs818a.htm
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Elements of Kew Gardens Principle Need Matter of degree? Proximity Not necessarily spatial Issue of knowledge Capability Last Resort Responsibility inversely proportional to likelihood others can/will help Problem: diffusion of responsibility
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Questions to ponder Is accepting the Kew Gardens principle inconsistent with stockholder theory? Does it go beyond Friedman’s formula, or
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This note was uploaded on 11/16/2010 for the course NATURAL SC NATS 1505 taught by Professor Isley during the Spring '10 term at Columbia State Community College.

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Week 5 Stakeholder - Week 5 Normative Stakeholder Debates SOSC 3040 Corporate Social Responsibility Issues raised by stockholder assumptions 1 Line

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