CORPORATE SOCIAL RESPONSIBILITY Much of the above analysis helps to split stakeholders into different types, but does not spend long looking at the moral aspect.
As companies have grown into multinational organisations, their ability to affect the world and how society operates has grown as well:
● Companies can change the way society works Should companies consider stakeholders at all, and if so, which ones? o Mobile phones o Email o
● Companies pollute the environment, and big companies can have a noticeable effect on their local community
● A big company in a community will be a major employer – decisions it takes could be the main influence on the prosperity of the community
● Companies who use low cost countries for supplies and services could be seen to be keeping those countries low cost … which could mean they are keeping wages down to what might be viewed as unacceptably low levels Facebook So how much responsibility do these companies have for their actions?
Should we expect companies to consider these responsibilities? Or should we expect governments to set laws for the "good" of society, and simply expect companies to act within those laws? How responsible should companies be? There are many different considerations and models, partly because this has been such a major talking point over recent years. Gray, Owen and Adams The Gray, Owen and Adams model looks at 7 different levels of how socially responsible we might deem companies to be.
To an extent, they could be seen as a historical development – from the older traditional views at the start, to more progressive modern (and sometimes radical) views towards the bottom: Pristine Capitalist This is the traditional view, seen by many (but not all!) as outdated today.
Companies are organizations set up to create returns for shareholders. As such, social responsibility is not their concern. Politicians should consider social and environmental issues and set laws if they feel it necessary.
Companies should simply seek to maximize shareholder profits without breaking any laws.
As companies have grown into multinational organisations, their ability to affect the world and how society operates has grown as well:
● Companies can change the way society works Should companies consider stakeholders at all, and if so, which ones? o Mobile phones o Email o
● Companies pollute the environment, and big companies can have a noticeable effect on their local community
● A big company in a community will be a major employer – decisions it takes could be the main influence on the prosperity of the community
● Companies who use low cost countries for supplies and services could be seen to be keeping those countries low cost … which could mean they are keeping wages down to what might be viewed as unacceptably low levels Facebook So how much responsibility do these companies have for their actions?
Should we expect companies to consider these responsibilities? Or should we expect governments to set laws for the "good" of society, and simply expect companies to act within those laws? How responsible should companies be? There are many different considerations and models, partly because this has been such a major talking point over recent years. Gray, Owen and Adams The Gray, Owen and Adams model looks at 7 different levels of how socially responsible we might deem companies to be.
To an extent, they could be seen as a historical development – from the older traditional views at the start, to more progressive modern (and sometimes radical) views towards the bottom: Pristine Capitalist This is the traditional view, seen by many (but not all!) as outdated today.
Companies are organizations set up to create returns for shareholders. As such, social responsibility is not their concern. Politicians should consider social and environmental issues and set laws if they feel it necessary.
Companies should simply seek to maximize shareholder profits without breaking any laws.
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