Chapter

Corporate Social Responsibility

pp 9-23

A New Approach to CSR: Company Stakeholder Responsibility

  • R. Edward Freeman
  • , S. Ramakrishna Velamuri

Abstract

Assume that the CEO of Firm A is asked the following: ‘Well, I know that your company makes products that consumers like, and that those products make their lives better. And I know that suppliers want to do business with your company because they benefit from this business relationship. I also know that employees really want to work for your company, and are satisfied with their remuneration and professional development. And, let’s not forget that you’re a good citizen in the communities where you are located;2 among other things, you pay taxes on the profits you make. You compete hard but fairly. You also make an attractive return on capital for shareholders and other financiers. However, are you socially responsible?’