Figure 3-2 Foundation principles of corporate social responsibility and their modern expression. Charity Principle Stewardship Principle Definition Business should give voluntary aid to society's needy persons and groups. Business, acting as a public trustee, should consider the interests of all who are affected by business decisions and policies. If the social concerns affect the business, and the business is justified in allocating resources to the problem, to reduce a negative impact, then being socially responsible has legitimacy. If there is no positive impact on the organization of a social act, then the business should re-evaluate the position.
Corporations have a legal obligation to the stockholders.
Social expenditures are considered to be a lawful use of stockholders' funds, if they promote the interests of the company while simultaneously helping society. Discuss the dilemma of child care centers vs increased wages for all workers, or United Way contributions vs increased stock dividends. Some social problems are too massive, too complex, and too deep-seated to be addressed by one company or by groups of companies. The argument continues as to what extent corporations should directly help society with its many problems. Business for Social Responsibility is a U.S. Trade Group made up of fifty-five charter members who seek to change the basic way business is done by making social, environmental, and worker friendly practices part of the corporate culture and policy.