While many contemporary American companies continue to demonstrate a high level of corporate social responsibility, almost all listed companies are finding themselves under increasing pressure from the investment community, to maximize shareholder value. As a result, the company’s interests are not neglected shareholder constituencies. The government must step in function and as a referee, enacting rules and regulations, what we expect of companies in the way of defining how thin … Read more »

While many contemporary American companies continue to demonstrate a high level of corporate social responsibility, almost all listed companies are finding themselves under increasing pressure from the investment community, to maximize shareholder value. As a result, the company’s interests are not neglected shareholder constituencies. The government needs to define the rules and regulations adopted what we expect of companies in the way of such things as working conditions, environmental protection and education in function and as a referee step. But because the political process is the only remaining vehicle for the expression of non-shareholder stakeholders, when business leaders want to be free, to maximize shareholder value, it is not appropriate for them to participate in shaping public policy.
«Hide

from
Robert B. Reich
Source: California Management Review
11 pages.
Release Date: 1 January 1998. Prod #: CMR099-PDF-ENG
New Meaning of Corporate Social Responsibility HBR case solution