Question: Do you agree with this statement and why or why not There are two perspectives to whom organizations are socially responsible to: shareholder model and
Do you agree with this statement and why or why not "There are two perspectives to whom organizations are socially responsible to: shareholder model and stakeholder model. When it comes to shareholders, maximizing profits is the main priority. As for the stakeholder model, the longevitysurvival is the main priority so focusing on everyone involved employees customers, local communities, etc. is just as important. An organization can give fair wages and benefits to their employees, good quality products for reasonable pricing to their customers, being ethical and having good morals to their society, supporting local businesses and suppliers, and having reducing carbon footprint and emissions. Companies need to be socially for various reasons including ethical obligations, risk management, reputation of their company, employee satisfaction. Their social responsibility is selfserving because it wont only positively impact the society but can also impact the organization for the better. As previously mentioned in how an organization can be accountable, supporting local businesses and reducing carbon footprint will benefit both the organization and society.
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