corporate responsibility and shareholder theory

Running Head : CORPORATE SOCIAL RESPONSIBILTY

Justification of the Shareholder Theory of Business Management

Name

Subject

College

Tutor

The corporate sector is asking the very question that Cain posed to God after murdering his brother : Am I my brother 's keeper ' Like the typical Pharisees of times yonder , they can 't help but wonder indignantly , why and how it came about that they have to shoulder the world 's misery on grounds of social responsibility . It is like when the developed nations wince inwardly every time a famine hits Africa

, and the leaders make a long queue to the west with their begging bowels Nevertheless , being the generous diplomats that they are , these Western Gentlemen , they , like their corporate friends , grudgingly part with a few goodies to help a starving continent . Now , that is what we call `good corporate manners ' eh

Two approaches to corporate social responsibility have been formulated each favoring either side of the argument . It is in their attempts to define and spell the principles of corporate responsibility , that differences emerge between the two schools of corporate management theless , Cain 's question ought to be answered with the objectivity it deserves , if any . In the following discussion , the examines the two theories of corporate management as advocated by Milton Friedman and Edward Freeman . In the end , it is this 's objective to argue that the shareholder centered theory is the best approach to business management , and that corporations do not have any social responsibilities beyond the...