Mangubat, Liezel S.

BSTM-701

1. The law requires corporation to “prioritize the interests of their companies and
shareholders above all other and forbid them from being socially responsible – at least
genuinely so” (Bakan, 2004, p.35).

 This indicates that management must run the firm for the profit of the shareholders, not for
the benefit of the persons in charge, according to a well-established legal principle. There
have also been court cases in which shareholders have questioned a company's
philanthropic donation or social policy. Every time I've encountered such shareholder
lawsuits, the courts have dismissed them on the basis that the company policy served a
business purpose. At the very least, boosting the company's public relations. Perhaps there
are cases where the courts have ruled against the corporation.

2. Issues relating to corporate social responsibilities are not new and the history of the
corporation includes a cycle of regulation and corporate response.

 Corporate social responsibility (CSR) refers to a company's self-imposed societal obligation in

areas like the environment, the economy, employee well-being, and competition ethics.
Many businesses use internal CSR regulations as a moral compass to positively affect their
company's ethical development. Positive corporate social responsibility can also boost the
bottom line. Also, yes. They've always been generous to the community. They also give
through foundations, ostensibly for the betterment of society. However, there must be
restrictions, as well as separation from the government and individual protection. There will
be no crony capitalism.