Chapter 5 Corporate Social Responsibility

Chapter 5 Key terms:
1. Corporate Social Responsibility: The duty of a corporation to create wealth in ways that avoid harm to , protect, or enhance societal assets.
2.libertarians: those who believe in the maximum freedom, or liberty to act or use property without interference by others, especially government.
3. Social Darwanism: A Philosophy of the late 1800's  and early 1900's that used evolution to explain the dynamics of human society  and institutions. The idea of "survival of the fittest" in the social realm implied that rich people and dominants companies were morally superior.
4. Ultra vires: A latin phrase denoting acts beyond the powers given the corporation by law.
5. Trustee: An agent of a company whose corporate role puts him or her in a position of power of the the fate of not just stock holders, but of others such as customers, employees, and communities.
6. Service Principle : A belief that managers served society by making companies profitable and that aggregate success by many managers would resolve major social problems.
7. Friedmanism: The theory that the  sole responsibility of a corporation it to optimize profits while obeying the law.
8.Value Chain: The sequence of coordinated actions that add value to a product or service
9. Civil Regulation: Regulation by nonstate actors based on social norms or standards enforced by social or market sanctions.
10. External cost: A production cost not paid by a firm or its customers, but by members of society.
11.Extraterritoriality: The application of one nation's laws within the borders of another nation.
12. Soft Law: Statements of philosophy, policy, and principle found in nonbonding international conventions that, over time, gain legitmacy as guidelines for interpreting the "hard lawa" in legally binding agreements.
13. Norm: A standard that arises overtime and is enforced by social sanction or law.
14. Principle: A rule, natural law, or truth used as a standard to guide conduct.
15. Codes of Conduct: Formal statements of aspirations, principles, guidelines, and rules for corporate behavior.
16. Sustainability reporting: The practice of a corporation publishing information about its economic, social, and environmental performance.
17. Fair trade: Payment of wages to small, marginal agricultural producers in developing nations sufficient to allow sustainable farming and labor practices.
18. Management Standard: A model of the methods an organization can use to achieve certain goals.

Reaction:
In this chapter, we find that corporations have been motivated primarily by profit because of two main reasons.
1) The idea of corporate social responsibility has continuously expanded in meaning
2)The power of stake holders to define corporate duty has increased.

It's focus was on explaining the idea of corporate social responsibility and its evolution.