10/6--10/8 Lecture Notes on CSR and stakeholder theory
10/6--10/8 Lecture Notes on CSR and stakeholder theory PHL 309U
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This 3 page Class Notes was uploaded by Cal Clark on Thursday October 8, 2015. The Class Notes belongs to PHL 309U at Portland State University taught by Dr. Colin Patrick in Fall 2015. Since its upload, it has received 33 views. For similar materials see Business Ethics in PHIL-Philosophy at Portland State University.
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Date Created: 10/08/15
Portland Stte UNlVlERSITY Dr Colin Patrick Business Ethics October 6th 2015 Lecture Notes Do profitdriven companies have a responsibility towards the public Many believe they DO because they have power and influence A responsibility to the stakeholders To be honest Safetyworkplace and in products Not discriminate Not put profit above humananimal welfare Not pollute Living wage Not monopolize vital resources Public knowledge eg information coming out of space Space X Philosophicalethical questions Can a corporation have responsibilities Do they have responsibilities if they are people Is it possible for corps to make good on responsibilities ie by installing a more responsible CEO Whose job is it to act on responsibilities CEOs make decisions on behalf of the corporation Buying and selling Investment and relocation etc Corporations are legally obligated to maximize profits for shareholders From a business perspective it is morally wrong to not maximize profit Undemocratic to spend other people s money on social issues Effectively posing taxes as the legislature executor and judiciary 66 Portland Stte UNlVlERSITY Bakan The Corporation Chapter 2 reading Corps are unlikely to be able to fulfill social responsibilities Doubtful that corps can social good for their own sake Bakan s arguments chiefly extend to companies that are A Profitoriented B Publicly traded History of CSR 0 Bubble Act 1720 and its repeal in 1825 o Outlawed the corporate form as we know it 0 Limited Liability Laws 1850s 0 Can t lose more than what you invest o Gradual loss of shareholder power led to virtual corporate personhood Corporations began to lose legitimacy in the public eye Large corporations themselves created CSR as a PRcampaign So is CSR a hopeless unrealistic ideal created by corporations Or is it a realistic goal that the m should strive for In the longrun even if corps want to do good they can t History shows small bids for CSR PR but no consistent alms CSR paradox Executives who choose social and environmental goals over profitswho try to morallyare in fact immoral Bakan 34 But it is OK if the CSR goals are insincere Bakan s CEOs John Browne of BP Hank McKinnell of Pfizer hit the paradoxthey have no choice but to put the shareholders first Doing good to do well puts a profound limit on corporate dogoodery The structure of corporations basically makes them selfinvolved sociopaths Ford v Dodge 1916 Corp sued for misuse of funds on philanthropic endeavors and won Prtland tate UlNl tflEfiSITy Dr Colin Patrick Business Ethics October 8th 2015 Lecture Notes III lli o Friedman thinks that shareholders are the only ones to whom the corps owe o Bakan mostly agrees c He thinks that the way corps operate necessarily prioritizes shareholders o Freeman thinks that stakeholders are all entities to whom corps owe c He says the corps can t treat people as a means to an end Kantianism o Corps have responsibilities towards see visual on pg 72 I Owners I Employees 0 Specialized skills and an inelastic market can tjust go work a different job need job security benefits etc In return for being treated well employees Expected to be loyal speak well of the company be a respected member of the community I Suppliers 0 Reciprocal relationship between suppliers and company Godfather Principle I Customers o Lifeblood of the firm in the form of revenuetherefore indirectly funds RampD and other company functions 0 Customers respond to ethical practices respect I Local community 0 Includes the environment see pg 75 o The corp itself is a legal entity 0 Community grants corp the right to operate Articles of Incorporationcharter I Managers 0 Employees too 0 Balance competing claims of multiple stakeholders memeg enerato rnet 6