“This is the cutting-edge textbook on a managerial approach to corporate responsibility. Students and executives will benefit a great deal by studying the cases and best practices that are here. It's a terrific book.” —Ed Freeman, Elis and Signe Olsson Professor of Business Administration, Darden School of Business, University of Virginia Corporate Responsibility offers a concise and comprehensive introduction to the functional area of corporate responsibility. Readers will learn how corporate responsibility is good for business and how leaders balance their organization—s needs with responsibilities to key constituencies in society. Author Paul A. Argenti engages students with new and compelling cases by focusing on the social, reputational, or environmental consequences of corporate activities. Students will learn how to make difficult choices, promote responsible behavior within their organizations, and understand the role personal values play in developing effective leadership skills.
Chapter 1: An Introduction to Corporate Responsibility
An Introduction to Corporate Responsibility
Corporate responsibility (CR) is the manifestation of a corporation’s social and environmental obligations to its constituencies and greater society. CR is increasingly being used by constituencies ranging from the general public to investors to analyze and critique modern-day corporate behavior.
When did society’s expectations of corporations shift to include responsible and accountable behavior in addition to profit-making? As recently as two decades ago, the general public viewed such “do-gooding” as the primary domain of nonprofit organizations and Good Samaritans. At the time, many considered businesses to be purely self-interested entities. Positioned in a corner directly opposite charities, the purpose of a corporation was profit maximization, with any efforts to give back to the community being limited ...