CH3 MLR465 - 3-2Responsibilities of a Business FirmSocial...

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Unformatted text preview: 3-2Responsibilities of a Business FirmSocial Responsibility: proposes that a private corporation has responsibilities to society that extend beyond making a profit3-3Responsibilities of a Business FirmFriedman’s traditional view of a business firm: •Argues against the concept of social responsibility–Primary goal of business is profit maximization not spending shareholder money for the general social interest3-4Responsibilities of a Business FirmCarroll’s four responsibilities of business: (in order of priority)•Economic•Legal•Ethical•Discretionary3-5Carroll’s four responsibilities of business: 3-6Responsibilities of a Business Firm•The ability to enter local and international markets•Enhanced reputation•Competitive advantage•Cost savings•The ability to charge premium prices•Improved relationships with suppliers and distributors•The ability to attract better talent•Goodwill in the eyes of public officials•Access to capitalSocial capitalrefers to the goodwill of key stakeholdersand provides a company with:3-7Responsibilities of a Business FirmCharacteristics of Sustainability•Environmental•Economic•Social•“Triple Bottom Line” - Profits, People, Planet3-8Corporate Stakeholders...
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CH3 MLR465 - 3-2Responsibilities of a Business FirmSocial...

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