Even if small number of companies are exercising CSR there will still be a

Even if small number of companies are exercising csr

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Even if small number of companies are exercising CSR, there will still be a large number that are not Friedman (“the SR of business is to increase profits”) and Mulligan CritiqueFriedman position: all he cared about was profits. He was an economist oCorporate executives work for owners (p. 1-33)oShareholders are the owners, who want money/profits oMake more money, comply with the law, but not just the law, conform to the rules of society that embody ethical customs (the codes and standards) oIf you have a corporate executive that supports a good cause; that’s stealing and robbing for personal benefit Principal-agent issue: in this case shareholders are the principal oThe Problem: he would say testing on animals, or environment will make products moreexpensive, and should not happen unless it is a law Mulligan’s Response: Friedman has a simplistic/cartoon-like conception of the relationship between corporate executive and the shareholder oThere is one corporate executive, and what the shareholder wantsoThe corporate executive can’t go anywhere he wantsHe has corporate mission, documents to follow oThere is a corporate structure that approves the executive’s actions In other words, corporate “governance”Little danger, and chance of a “lone ranger” in a corporation Where is the Law: EXPLICITLY mentioned with Friedman, IMPLICITLY mentioned (corporate governance) with Mulligan Sir Geoffrey Owen oOrigins of CSR: South African Apartheid, the LAW discriminated against blacksDuring the 70s is where people started saying “that’s not right”South Africa dropped that when businesses and consumers stopped doing business because of it Market pressure to address the issue corporations acting with/from pressure of consumers/market osustainability of CSR: as long as there is a dissonance between different markets, there will be CSR (Loblaw’s, Bangladesh, Canada) it is a mistake to leave governing to the government solely othis concept needed revisiting in 2007 Private Sector in Canada making new laws for themselves oBopal happened in India with an American company They wanted to get “ahead of the game”If we go to a country to set up a factory, the reputation of the industry will precede us 4
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