Environmental Protection and the Social Responsibility of Firms

Summary of Discussion on Corporate Social Responsibility and Law

This discussion focused on three questions. (1) The positive question: To what extent does the law formally permit corporate managers to sacrifice profits for the sake of social responsibility? (2) The normative question: To what extent should we permit or encourage corporate managers to sacrifice profits for the sake of social responsibility? (3) The relevance question: In light of other factors constraining corporate managers, does it matter whether we think they can and should sacrifice profits for the sake of social responsibility?

What the Law Permits

On the positive law question, Robert Stavins asked whether it was truly noncontroversial that corporate managers have no enforceable ...