* Provide an explanation of the legal structure of a corporation and the separation of ownership and management. * Outline the principal/agent argument. * Argue a case against corporations having moral responsibilities. * Present case for corporations having moral responsibilities. * What is the difference between global CSR and domestic CSR? * Case study. Examine a MNC which has had a CSR issue. * Sum up.
Introduction
This assignment will seek to delve upon profit making institutions, their objective on increasing shareholder value and in the quest to do so, evaluate their sole focus on economic benefits which might erode broader social benefit or harm the society. In this light, this report seeks to evaluate Corporate Social Responsibility (CSR) in theory and actual practice. In the process of evaluating, the assignment would showcase different scenarios / cases where CSR abuses or upholding the same would be examined. From such cases, arguments would be built to show how abusing business activities (Hamilton and Webster, 2012, p. 311) may have a negative impact on stakeholders and societies; and how upholding CSR values is beneficial for the society at large besides being beneficial from business standpoint as well.
Globalisation has increased corporate power which is pervasive on a world wide scale and any abuses of this power has reverberating effects across the globe, an example being Lehman Brother’s management and the company’s auditors E&Y (Hamilton and Webster, 2012, p. 311) who played their role in the fall of banking system leading to global financial crisis. In this case, E&Y as an auditor was not ethical about its business leading to severe losses to the public. Large businesses have many times been accused of not being ethical and socially responsible as human
