Definition
Shareholder theory equates to an influential view on the role of business in society which pushes the idea that the only responsibility of managers is to serve in the best possible way the interests of shareholders, using the resources of the corporation to increase the wealth of the latter by seeking profits. According to this theory, such behavior, done within the constraints of law and without deception or fraud, would be beneficial for society as a whole. Within this theory corporate social responsibility is defined in purely economic profit making terms.
Introduction
The many different ways according to which corporate social responsibility is conceptualized are related to differing views regarding the role of business in society. Within the literature there exist several points of view on the role of business in society which lead to different views on corporate social responsibility. Among the most...
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References and Readings
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Castelo, B.M. (2013). Shareholder Theory. In: Idowu, S.O., Capaldi, N., Zu, L., Gupta, A.D. (eds) Encyclopedia of Corporate Social Responsibility. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-28036-8_31
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DOI: https://doi.org/10.1007/978-3-642-28036-8_31
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