Corporations And Corporate Social Responsibility

1140 Words Mar 5th, 2016 5 Pages
λ Introduction

With the development of economy and society, large corporations not only have responsible for make profit to their shareholders, but also taking environmentally responsible and undertaking corresponding social responsibilities as well as other stakeholders. This point of view could be involve in the corporate social responsibility (King and Lawley, 2013). Additionally, the definition of stakeholders are individuals or groups which affected by an organization and have an interest in its activities (Freeman, 1984). Moreover, Starik (1994) stated that those who potentially have impact on an organization may also is a stakeholder. However, according to Lynch (2006) argued that when a corporation involve many stakeholders, they will easily conflict with each other. And as manager at the central part of corporation, they may in a better position to abuse their power (Hill and Jones, 1992 cited in Kolk and Pinkse, 2006). This essay will argue that some of large corporations fall of corporate social responsibility from three aspects which are owners, suppliers and consumers respectively.

λ Owners

In a small corporation, the owner normally will run the business on a day to day operation. However, larger corporation will more likely to appoint managers which also called executive directors to run the business (Rob et al., 2008). On the one hand, both of the owners and the executive directors are the member of stakeholders as a result of owners put up the capital…
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