Freeman Ideas On Liberty

Freeman ideas on liberty

Corporations and their social responsibilities

Do corporations have social responsibility?

Corporate social responsibility advocates say that since corporations are fictitious persons, created by law and sustained by the government grants of limited liability for individual shareholders, they have obligations that surpass those of sole proprietorship or partnerships.

Until the 19th century. The right to conduct business in the corporate form was a matter of state or private economic interest. After, the turn of the century corporate law underlined that corporations existed to make money for its shareholder. At this point, the corporate mindset shifted and has been greatly disputed.

-"the corporation exists to benefit its stockholders and that corporate directors have the discretion only in the means to achieve that goal." -Michigan supreme court

Corporation have a direct responsibility to shareholders before anything else.

To counter the issue has been brought up that corporations have grown so large and amassed so much over society that previous formulations of the social responsibilities have simply become outdated.

Because many corporations have so much economic power and social influence, responsible corporate managers should consider a host of goals other than profit maximization.......but who is to say hoe much power is too much power?

corporations are social institutions and as such must live up to society's standards.

Counter: Corporations do not exist in physical reality so they cannot really have social responsibilities.

In respects to the responsibilities of managers to stockholders, the main