Business Ethics and Corporate Governance, Second Edition

THEORETICAL JUSTIFICATION FOR CSR

Social scientists have formulated several theories that justify the importance of corporations engaged in promoting welfare of the society in which they operate. These theories are described next.

Trusteeship Model

The trusteeship model has been evolved on a realistic and descriptive perspective. It considers the current situation of a public limited company reflecting that it is a social institution having a corporate personality as envisaged by the European concept of what constitutes a corporation.

Further, several authorities on the subject reiterate the view and argue that a public corporation is not the creation of a private contract and thus not owned by any individual. Ownership is, by definition, where ...