Question

According to James Bresseau, which of the following is an important difference between corporate social responsibility theory (CSR) and shareholder value theory (SHV)?

-While CSR also holds that corporate decisionmakers have an ethical obligation to pursue profitability, unlike SHV, it does not necessary require MAXIMIZATION of profits.

-Unlike SHV, CSR holds that a corporation should comply not only with the letter of the laws, but also with their "spirit" (i.e., their broader objectives).

-Unlike SHV, CSR holds that corporations have a philanthropic obligation.

-All of the above

Answer 1

Answer: All of the Above

Step-by-step explanation:

James Bresseau teaches that Corporations have a duty to be Corporately Responsible in terms of the Economy, Legal wise, Ethically, and Philanthropically.

He argues that money and profits are very important for a business to run but do not need to be maximised unlike in the Shareholder Value Theory where profits must be maximised for the benefit of the shareholder.

He argues that as much as they should abide by the law, they should also go a step further and act in moral ways by listening to their spirit and taking decisions that they know will be right for the society at large.

The Shareholder Value Theory does not speak of philanthropic ventures but rather ventures to bring wealth to the shareholder. CSR on the other hand believes that the society at large is a shareholder and so Corporations should engage in Philanthropic ventures to share wealth and help the people.