Conventional (Adolecent) - Group Perspective - Justification Group Norms
PostConventional (Adult) - Universal Perspective - Justification Moral Principals
Corporations as Moral Agents
Corporations are statutorily created entitys it is not clear whether they should be held morally responsible
Regulation of Business
Governmental regulation has ben necessary because all conditions for a perfect competition has not been satisfied and free competition cannot by itself achieve other societal objectives
vast amounts of wealth and power have become concentrated in a small number of corporations, which in turn are controlled by a small group of corporate oficers
Arguments against social responsibility
1.) Profitability - becasue corporations are artificial entities established for profit making activities their only scoial obligation should be to return as muc money as possible to shareholders
2.) Unfairness - whenever corporations engage in social activities, such as supporting the arts/ education, they divert funds rightfully belonging to shareholders and or employees unrelated to third parties.
3.) Accontability - a corporation is subject to less public acountability than public bodies are
4.) Expertise - Although a corporation may have a high level of expertise in selling, there is absolutly no gaurantee that any promotion of social activities will be carried on with the same degree of competence.
Arguments in favor of social responsibility
1.) The social contract - because society allows for the creation of corporations and gives them special rights including a grant of limited liability corporaitons owe a responsibility to society
2.) Less Governement Regulation - by taking a more proactive role in addressing societys problems corporaitons create a climate of trust and respect tha thas the effect of reducing government regulation.
3.) Long-run profits - corporate involvment in social causes creates goodwill, which simply makes good business sense.