The Validity And Limit Of Corporation Social Responsibility

Corporate Social Responsibility (CSR) is a hot topic that brings broad debate,its essential problem is whether corporation should undertake social responsibility ,what they should social responsibility ,namely the validity and rational limit of corporation social responsibility. This paper analyses corporate social responsibility based on stakeholder theory and discusses some issues about CSR from the standpoint of ethics.Traditional economics theory assumes that the firm is the pursuer of profit maximization. The shareholder is the owner of firms,so the profit maximization is the shareholder interest maximization. But this paper argues that theoretical logic of shareholder primacy exist limitations. This paper proposes that CSR implies Corporations maximize shareholder profits as well maintaining voluntarily the interest of non-shareholder stakeholders. The objective of firms is to pursue the whole stakeholder interest maximization. This paper by defuse CSR damaging efficiency theory and justice theory clarifies that corporation undertakes social responsibility is not only in favor of the society but also of itself goal. Corporation undertaking social responsibility will enhance economic efficiency and keep social justice. This paper can draw the clear conclusion that there is essential difference distinction between the corporation undertaking CSR and corporation running society. This paper through analyzing economic responsibility,legal responsibility and ethical responsibility points out that the fundamental principle of CSR limit. The paper being based on the principle respectively discusses that corporations being on different developing process and different scale should undertake social responsibility.