WHAT IS THE ROLE FOR CORPORATIONS IN SOCIETY?

• Supporter
• Facilitator
• Leader
• Great Citizen as well as a Profit Center for Investors

Redefine Definition of Profit - Broadly

• Low Impact n Environment
• Sustainability
• Decent versus maximum return on investment
• Incentivize foreign workers at manufacturing plants run by its vendors to create better quality via bonuses (focus on level of work and volume...but response was minimal; in fact, lost $...but tried.

Socially Responsible Business creates great public relations; employees are a microcosm of society

• Limited Raw Materials
• Limited ability to process pollutants
• need to sustain environment and society

TRIPLE-BOTTOM LINE

• Sustainability approach to corporate citizenship
• employs free market principles and necessity for financial success
• gives importance to social and environmental responsibilities

Long-Term Company Interest

• Profits #1
• Plus satisfies workers, customers and community members

Profit Maximization

• Profits #1 and 2 and #3 in importance
• Shareholders own the company
• Milton Friedman (former President of Fed Reserve): Charitable contributions take away from market and shareholders

SOCIAL RESPONSIBILITY PYRAMID

• Economic Responsibilities to Shareholders - Required
• Legal (obedience to laws) - Required
• Ethical Responsibilities - Expected
• Discretionary/Philanthropic - Desired