Corporate social liability and the creation of value for organizations

Posted by on 12:13 PM in Working Papers | 1 comment


Abstract: The issue of Corporate Social Responsibility is subject of growing debate in the academic environment. It is widely accepted that business has an ethical dimension, besides the economic and legal dimensions. But there is no consensus about the nature of the ethical dimension and to whom they are owed. A group of scholars support the “stockholder view”: the idea is that the only social responsibility of business managers is to increase profits of the company´s owners, respecting the rules, without fraud or deception. Other group support the “stakeholder view”: business managers have duties to several groups, all of those affected by the firm´s decisions, including clients, suppliers, employees, community and so on. The present paper will evaluate these competing views under the framework of institutions where the business activity is played. The point is that the institutional set is the main motivational factor inducting the firm´s behavior regarding ethical and social responsibility issues. The changes in the global institutional environment, both formal and informal, as a consequence of the growing market integration are the driving forces in the behavior changes of firms worldwide and specifically within the brazilian context. This study focus on the links between institutional environment, business ethics, reputation and corporate social responsibility. Case studies will be presented discussing the main incentives for companies to engage in such social programs. The cases support the statement that “institutions matter” to the economic and social performance of business agents. The new institutional framework, derived from technological changes specifically in communications, new social and environmental regulations and consumer behavior changes are raising the ethical concerns of companies, inducing them to develop social responsibility actions as a strategy to gain or at least mantain their reputational capital.
This publication is just available in portuguese

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  1. Delly

    Short, sweet, to the point, FREE-exactly as information shloud be!

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