Defines CSR and the stages there of, social entrepreneurship and B corporations. What management has to implement for reaching good corporate governance
Chapter Three:
Corporate Social Responsibility
and Citizenship
Corporate Power and Responsibility
, The power exerted by the world’s largest business organizations is obvious and enormous. This
influence is termed- Corporate Power: the capability of corporations to influence government, the
economy, and society, based on their organizational resources.
To get a sense of the economic
power of the world’s largest
companies alongside countries
whose total gross domestic
product is about the same as
these companies’ revenue.
The revenues of the wealthiest
company in the world, Walmart,
are about the same as the GDP
of Belgium. China Natural
Petroleum’s revenues are the
same as Chile’s GDP; Apple’s
revenue is the same as
Vietnam’s GDO. Amazon’s
revenues are the same as
Hungary’s GDP and BMW’s revenue are the same as Ukraine’s GDP.
The size and global reach of major international enterprises such as Walmart give them
tremendous power.
We depend on corporations for:
o Job creation
o Community well being
o The standard of living
o The tax base for essential municipal, state and national services
o Needs for banking and financial services, insurance, transportation, communication,
utilities, entertainment, and healthcare.
These corporations have the resources to make substantial contributions to political
campaigns, thus, influencing the policies of governments
They dominate not only the traditional domains of product manufacture and service
delivery, but also increasing reach into such traditionally public sector activities such as
education, law enforcement and provision of social service.
The tremendous power of the world’s leading corporations has both positive and negative effects:
Positives:
A big company may have definite advantages over a small one.
It can command more resources, produce at a lower cost, plan further into the future, and
weather business fluctuations somewhat better.
Globalisation of markets can bring new products, technologies, and economic opportunities
to developing societies, and help those in need.
Negatives:
Huge businesses can disproportionately influence politics, shape tastes, and dominate public
discourse.
They can move production form one site to another, weakening unions and communities.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller alyshagurnell. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R60,00. You're not tied to anything after your purchase.
