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By Archie B. Carroll

Enterprise AND SOCIETY: ETHICS AND STAKEHOLDER administration makes use of a considerate presentation of state of the art examine besides 37 case histories to assist scholars comprehend the relationships among enterprise and society stakeholders. The managerial viewpoint of this article emphasizes the dual issues of stakeholders and ethics. It indicates scholars the best way to combine moral concerns into all their decision-making. this article employs a stakeholder administration framework that emphasizes business's social and moral duties to either inner and exterior stakeholders.

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Part of the difficulty in deriving a definition on which we might get consensus is the problem of determining, operationally, what the definition implies for management. This poses an almost insurmountable problem because organizations vary in size, in the types of products they produce, in their profitability and resources, in 31 32 Corporate Social Responsibility, Responsiveness, and Performance 32 PART ONE Business, Society, and Stakeholders their impact on society, and so on. Because this is the case, the ways in which they embrace and practice social responsibility also vary.

Corporate Social Responsibility, Responsiveness, and Performance Chapter 2 Corporate Social Responsibility, Responsiveness, and Performance 33 A Four-Part Definition of CSR Each of the aforementioned definitions of corporate social responsibility has value. At this point, we would like to present Archie Carroll’s four-part definition that focuses on the types of social responsibilities it might be argued that business has. 16 These social concerns include ethical responsibilities and voluntary/discretionary (philanthropic) responsibilities.

Assume law is a floor on behavior; operate above minimum required by law. Assert ethical leadership. REQUIRED of business by society Obey all laws; adhere to regulations. Environmental laws. Consumer laws. Laws affecting all employees. Obey Foreign Corrupt Practices Act. Fulfill all contractual obligations. REQUIRED of business by society Be profitable. Maximize sales revenue. Minimize costs (administrative, production, marketing, distribution). Make wise strategic decisions. Be attentive to dividend policy.

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