Define corporate social responsibility and explain how organizations are

Define corporate social responsibility and explain

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1.Definecorporate social responsibilityand explain how organizations areresponsible to their stakeholders. 12. Approach that an organization takes in balancing its responsibilities toward different stakeholders when making legal, economic, ethical, and social decisions. Chapter 2 Business Ethics and Social Responsibility 85
Figure 2.6 The Corporate Citizen Let’s look at some of the ways in which companies can be “socially responsible” in considering the claims of various stakeholders. Owners Owners invest money in companies. In return, the people who run a company have a responsibility to increase the value of owners’ investments through profitable operations. Managers also have a responsibility to provide owners (as well as other stakeholders having financial interests, such as creditors and suppliers) with accurate, reliable information about the performance of the business. Clearly, this is one of the areas in which WorldCom managers fell down on the job. Upper-level management purposely deceived shareholders by presenting them with fraudulent financial statements.

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