Members operating environment valued supply chain

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members > operating environment valued supply chain partners. (stockholders, customers, employees, etc) > macroenvironment (community needs). Rights theory : Justice theory: Individual rights > Altruistic CSR is group rights (e.g. com- unjust and socialistic munity needs); negative when resources are redistributed rights (e.g., stockholders’ from stockholders and employees property rights) > positive to the community. rights (e.g., community needs); prioritize negative rights according to degree to which stakeholder groups are close to the firm and have legitimate claims on it as in deontological rule above. Figure 2. Flowchart for ethical evaluation of CSR proposals
22 The primacy of individual rights over group rights also argues against social responsibilities toward worldwide and even community causes at the expense of those closest to the firm, such as its workers and customers. It also suggests that individual shareholder’s property rights should not be forfeited for community needs, no matter how pressing. The significance of liberty or negative rights, and the spuriousness of welfare or positive rights, suggests that altruistic CSR sacrifices stockholders’ legitimate property rights are on the altar of false societal welfare rights. As with duties, so must rights be prioritized according to the extent to which stakeholder groups are close to the firm and have legitimate claims on it. Justice theory argues against altruistic CSR because it is unfair to take away stockholders’ earnings, which are earned at their risk, or to lower employee pay or raise consumer prices, unless these groups are willing to sacrifice for the cause. Individual businesses do not have the responsibility to make up for the deficiencies of capitalism, which leaves some individuals and groups marginalized. To give business such a duty is based on socialistic thinking that the family model of providing for its members generalizes to the community or society at large. Virtue theory and its subset, the ethics of care, also suggests that responsibilities are owed first owed to those stakeholders closest to the company, consistent with the ranking of duties and rights owed to various corporate constituencies Strategic CSR is moral and commendable because it benefits stockholders while helping other stakeholders. Even here, however, controversial causes should be avoided so as to minimize harm to the firm’s image and not have stockholders unknowingly fund activities that go against their own values. Altruistic activities for privately held firms and managers as private individuals All of this is not to say that business is only about stockholders making money. However, community welfare should not to be provided at the stockholders’ unrequested expense and to the detriment of employees, customers, and others with valued relationships with the business. Shareholders remain free to donate a portion of their capital to good works of their choosing. And, for private firms, the use of company profits for community needs is a perfectly legitimate and commendable choice, even where no

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