THE CONTEMPORARY WORLD

Charles Henry Mason A112 BSIT

02 ACTIVITY 1 - ARG

1. The law requires corporations to “prioritize the interests of their companies and

shareholders above all others and forbid them from being socially responsible – at least

genuinely so” (Bakan, 2004, p.35).

 The unwritten rule is a better way to describe the law that requires corporations to

“prioritize the interests of their companies and shareholders above all others and

forbid them from being socially responsible. Corporations have a USA way of

business that allows them to be socially responsible but on the other hand don’t

reduce profits by spending cash on things not related to products. America must

change the secret behind the scenes dealings with big companies who politically pay

their dues in exchange for lack of oversight when comes to being socially responsible.

2. Issues relating to corporate social responsibilities are not new and the history of the

corporation includes a cycle of regulation and corporate response.

 In my opinion the problem that the companies face is Priority, their priorities are not

aligned with regulation. Profits and long-term growth are the number one priority.

Every company has quarterly reports which in part mainly concentrate on profits and

losses, people may get fired and affect the stock market based on how the reports

show plus or minus. Now on the other hand if a company gets some bad publicity

over a scandal or some type of product recall or defect, then the priority shifts to

avoid lawsuits, fines etc. The plan that companies show agencies to operate business

is outdated based on our current ecosystem and increasing technology. If the

 THE CONTEMPORARY WORLD
Charles Henry Mason A112 BSIT
02 ACTIVITY 1 - ARG

company makes profits, Government agencies will approve licenses and contracts off

the old plan. Most of the time these plans are not in line with the current social

economics and environmental ecosystem.