Anglo American Corporate Social Responsibility

1501 Words Aug 28th, 2015 7 Pages
1. Introduction
Since the days when Friedman (1970) considered that: “…business as a whole cannot be said to have responsibility…”, the improvement of the notion of Anglo-American corporate social responsibility (CSR) has rapidly expanded. This essay will review the important concept around Anglo-American CSR, its development and provide a verdict on the extent whether liberalisation, globalisation, and developments in the markets for debts and equity are impacting the tradition view of an Anglo-American public corporation and the nature of its social responsibility.

2. Tradition view of Anglo-Saxon corporate and CSR
According to the research from Cernat (2004), the fiduciary relationship between managers and shareholders constitute the basic of corporate in the Anglo-Saxon tradition. The character of Anglo-Saxon corporate governance systems is dispersed equity holding and a broad delegation to management of corporate responsibilities. Cernat (2004) draw the relationship model of Anglo-Saxon corporate as the managers and shareholders with agent and principal, respectively. In short period, individualism and profit-oriented behaviour are constituted a suite of appropriate institutions to enhance their effectiveness. Under this relationship, agency problem will be inevitable, which managers and shareholders have different interest and asymmetric information.
Based on the self-interest, it comes no surprise that Friedman (1970), the extreme view of classic Anglo-Saxon…
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