ERIC Number: ED231717
Record Type: RIE
Publication Date: 1983-Jun
Reference Count: 0
The Corporate Value and Social Responsibility.
Lilly, Edward R.
In the past two decades, corporate social responsibility has become a controversial issue which is usually responded to according to the management style of individual corporations. Three concepts of management style have developed. Profit maximization considers that money and wealth are most important, labor is a commodity to be bought and sold, and management accountability is to the owners. Trusteeship management is characterized by beliefs that money is important but so are people; labor has certain rights; and management accountability is to owners, employees, customers, and other contributors. Quality of life management is concerned that people are more important than money; employee dignity has to be satisfied; and management accountability is to owners, contributors, and society. Accordingly, technological, environmental, and aesthetic values differ greatly among management styles. Arguments for corporate social responsibility include long-run self-interest, public image, avoidance of government regulation, sociocultural norms, stockholder interest, and predictive prevention. Arguments against are limitation of profit maximization, costs of social involvement, lack of management's social skills, business's possession of too much power, lack of accountability, and dilution of business's primary purpose. Research indicates a positive relationship between a company's social and economic performance. (KC)
Publication Type: Opinion Papers; Information Analyses
Education Level: N/A
Authoring Institution: N/A
Identifiers: Profit Maximization