four corporate social responsibility
Two main theories dominate discussion of corporate responsibility: stockholder theory and stakeholder theory. Stockholder theory maintains that profit for stock owners represents the main moral obligation of the corporation. Stakeholder theory takes the view that groups other than the stockholders, such as the community at large, have a vested interest in the management of the corporation. The types of corporate social responsibility typically align with the stakeholder theory that corporations have responsibilities beyond profit.
Environment
Harvard professor and business theorist Michael Porter notes in his seminal text, "On Competition," that businesses need to operate in ways that are not “environmentally wasteful.” Once considered the cost of doing business, pollution and rampant consumption of resources now represent a social and political concern on the global level. Activists encourage corporations to voluntarily alter operating procedures to reduce environmental impact, and government has stepped in to regulate carbon emissions and apply stringent rules to waste disposal.
Fiscal
Even under a stakeholder model, finances play a central role. Businesses that do not yield a profit do not stay in business. Fiscal responsibility, however, extends beyond mere profit generation. The economic catastrophe brought on by the subprime mortgage crisis in 2008, along with several multibillion dollar Ponzi schemes, has highlighted the need for ethical and transparent bookkeeping. Fiscal responsibility also means using the most efficient procedures to minimize wasted capital. This can translate to anything from new equipment or manufacturing processes to using software that streamlines data processing
Human Rights
The globalization of manufacturing has placed corporations in a precarious position with regards to human rights. Even corporations that assemble products domestically frequently purchase parts produced overseas, where child labor and lax safety conditions
Environment
Harvard professor and business theorist Michael Porter notes in his seminal text, "On Competition," that businesses need to operate in ways that are not “environmentally wasteful.” Once considered the cost of doing business, pollution and rampant consumption of resources now represent a social and political concern on the global level. Activists encourage corporations to voluntarily alter operating procedures to reduce environmental impact, and government has stepped in to regulate carbon emissions and apply stringent rules to waste disposal.
Fiscal
Even under a stakeholder model, finances play a central role. Businesses that do not yield a profit do not stay in business. Fiscal responsibility, however, extends beyond mere profit generation. The economic catastrophe brought on by the subprime mortgage crisis in 2008, along with several multibillion dollar Ponzi schemes, has highlighted the need for ethical and transparent bookkeeping. Fiscal responsibility also means using the most efficient procedures to minimize wasted capital. This can translate to anything from new equipment or manufacturing processes to using software that streamlines data processing
Human Rights
The globalization of manufacturing has placed corporations in a precarious position with regards to human rights. Even corporations that assemble products domestically frequently purchase parts produced overseas, where child labor and lax safety conditions