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Chapter Four of our textbook talks about The
External
Stakeholders
. The chief concept here pertains to Corporate Social Responsibility (CSR). CSR involves an organization’s duty and obligation to respond to its stakeholders’ and the stockholders’ economic, legal, ethical, and philanthropic concerns and issues.
Two major schools of thought are described:
Free Market
in which the primary aim of a business is to make a profit. Competition rather than regulation keeps bad behavior in check and companies work hard to differentiate themselves in order to make more profit.
In a
Social Contract
environment, outside forces such as regulation, laws, enforcement and outside governance produce limits to a corporation’s power and reach.
Below is a set of questions whose answers might be different depending on who is looking at them. As part of the discussion board this Unit, give your answer and justification. Make sure you respond to the comments of at least two other fellow students.
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