Does Business Have Social Responsabitly? Free Essay, Term Paper and Book Report
The purpose of corporations is to operate in the interests of shareholders. This stems directly from corporate law in its current form. Corporate law in its current form actually inhibits executives and corporations from being socially responsible. The provisions in the law say the purpose of the corporation is simply to make money for shareholders. The corporate design contained in hundreds of corporate laws thought-out the world is nearly identical. That design creates a governing body to manage the corporation and dictates the duties of those directors to managers. Section 716 of the business corporation act reads, the directors and officers of a corporation shall exercise their powers and discharge their duties with a view to the interests of the corporation and of the shareholders; this provision is the motive behind all corporate actions everywhere in the world.
Inside and outside the corporation ethical and social concerns are irrelevant or stumbling blocks. Low stock price leaves a company vulnerable to takeover or means the CEO’s job could be at risk. Corporation......
Word Count: 919
Page Count: 3.6 (250 words a page / double spaced)
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