Contrast the two models of social responsibility
To contrast the two models of social responsibility, we can examine the two prominent approaches known as the shareholder model and the stakeholder model.
1. Shareholder Model: This model primarily focuses on maximizing profits and increasing shareholder value as the central goal of a business. It emphasizes the company's responsibility to its owners or shareholders. According to this model, businesses have a legal and ethical duty to make decisions that benefit shareholders' financial interests. The well-being of other stakeholders, such as employees, customers, communities, or the environment, is not the primary concern under this model.
To find information regarding the shareholder model of social responsibility, one can consider the following steps:
1. Consult reputable business journals or academic publications that discuss corporate governance and social responsibility.
2. Research articles or books by influential economists or business scholars who have written on the topic of shareholder model.
3. Look for case studies or company reports that exemplify the shareholder-centric approach in business practices.
2. Stakeholder Model: In contrast to the shareholder model, the stakeholder model takes a broader perspective by recognizing that a company has responsibilities towards a wide range of stakeholders. These stakeholders can include but are not limited to employees, customers, partners, suppliers, communities, and the environment. The stakeholder model suggests that businesses should consider the interests of various stakeholders while making decisions, aiming to create a positive societal impact alongside profitability.
To obtain information regarding the stakeholder model of social responsibility, you can follow these steps:
1. Read academic journals and business literature that explore the concept of corporate social responsibility (CSR) and stakeholder theory.
2. Research case studies or reports from companies known for adopting stakeholder-oriented practices.
3. Look for publications by scholars, such as R. Edward Freeman or Archie B. Carroll, who have contributed significantly to the stakeholder theory.
By conducting comprehensive research using reputable sources, you can gain a better understanding of the shareholder and stakeholder models of social responsibility, including their principles, criticisms, and implementations in real-world business scenarios.