Question

Joe Inc. made business decision and the core of it decision was the question as to how its employees, consumers, supplier and community will be affected. What legal issue is it?

Answer 1

The notion of 'corporate social responsibility' implies that corporations have ethical, moral & charitable responsibilities along with their responsibilities to making a fair return for investors & abiding by the law. A conventional perspective of the corporation suggests that its fundamental, if not sole, responsibility is to its stockholders/ owners. However, CSR expects corporations to adopt a wider approach towards its responsibilities which includes not only shareholders, but several other constituencies also, including personnel, suppliers, consumers, the local community, the government , environmental groups etc. Collectively, the different groups impacted by the acts of a corporation are called ‘stakeholders.’

CSR is related to, but not identical to corporate ethics