Corporate Social Responsibility and Corporate Excellence
2013
Stakeholders and Stockholders: CSR the Old-Fashioned Way
Milton Friedman’s oft-cited objection to traditional CSR is that corporations
exist solely to create economic value for their shareholders. To Friedman, any
charitable donations made by managers (to the local symphony, for example)
could be justifi ed only if the donation or action promoted the corporation’s
profi tability. He thus insisted that (1) any charitable donations must demonstrate a positive return on investment, and (2) that nonprofi t organizations
(including cultural institutions) be supported only by voluntary individual donations. In contrast, advocates of CSR have encouraged managers to focus on
stakeholders-in addition to shareholders-as a means to create positive value
for society (see chapter 7).
- Correction
- Source
- Cite
- Save
- Machine Reading By IdeaReader
11
References
2
Citations
NaN
KQI