Sweatshop Essay

1295 Words6 Pages
CSR in Action? Why does McDonald’s advertise its support of the Olympics, its environmental protection activities,…in the bags?  Because some of these advertisements gives the impression to consumers that they are a good supportive company  The company is interested in attracting more long-term customers  By drawing away from the fact that there food is not healthy they put the attention on something else  The company is trying to enhance there market of corporate laws CSR: The social responsibility of corporations to enhance society’s welfare OBJECTIVES 1. Introduction 2. Two views of CSR: a. Shareholder View • Maximizing shareholder value ultimately enhances society’s welfare • Problems with Shareholder View of CSR • Examples: Bhopal disaster, NIKE, Toronto’s sweatshops b. Stakeholder View • Serious considerations should be given to stakeholders’ interest (employees, consumers, local communities) in making corporate governance decisions • Multi-fiduciary duties, shareholder activism, transparency & public accountability (internal governance strategies) • Does this work? Consider sweatshops in Toronto 3. Conclusion SHAREHOLDER VIEW OF CSR Maximizing shareholder value/profits ultimately enhances society’s welfare Instrumental View of CSR Friedman (1970), Jensen (2000) • Social responsibility of corporations is to maximize profits or shareholder value • Within the constraints of law and social morality • Society benefits from profit objectives of corporations: – Job creation, – Supply of high quality, low price goods and services – Technological innovation – Taxes and Public Funding for Public Service SOME STRATEGIES OF SHAREHOLDER VIEW OF CSR • Strategies for competitive advantages – Social investment to create competitive advantage (philanthropic investment in areas related to business e.g.
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