While more and more businesses embrace Corporate Social Responsibility (CSR) principles, R. Edward Freeman of The Darden School, University of Virginia, and S. Ramakrishna Velamuri of IESE Business School claim that the CSR concept as it is understood today is just superfluous. Their paper “A New Approach to CSR: Company Stakeholder Responsibility” proposes to replace “Corporate Social Responsibility” with an idea called “Company Stakeholder Responsibility”, which offers a new interpretation of the very purpose of CSR: “Company” signals that all forms of value creation and trade and that all businesses, irrespective of size, need to be involved; “Stakeholder” suggests that the main goal of the company is to create value for key stakeholders; and “Responsibility” implies that business and ethics cannot be separated.
Authors: R. Edward Freeman, S. Ramakrishna Velamuri
Source: IESE Insight
Subject: Social Responsibility (ESG)
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