Corporate Social Responsibility .
Many moral reformers in business ethics argue that business managers should transform themselves from agents of capital into agents of society who are morally responsible in solving social problems by using economic resources under their control. The traditional agent of capital view states that a corporation's only responsibility lies in making a profit through fair and legal business practices. Agent of society views argue that corporation's responsibilities are also towards the society and community that it operates in. With careful analysis, determination of the most acceptable viewpoint becomes easier.
The agent of society view is a notion that corporations have a responsibility to consider the interests and needs of not only the shareholder, but also the needs of other members of society. In the broad sense this view holds that corporations should devote their needs whether or not they make a profit. In the agent of society views there are also sub views ranging from minimum, maximum, and stakeholder views. The minimum agent of society view considers corporations responsible for social problems and aiding others who are in need when it is possible at little cost (Rodewald 32). The wide-ranging agent of society view holds that managers should always consider the interests of all those who are likely to be affected by their business decisions equally with the interests of the shareholders. When a conflict arises in the wide-ranging view investors and noninvestors should try to do what would achieve the best balance of utility, rights, and duties. .
Edward Freeman's view of the Stakeholder Theory of the Modern Corporation holds that the modern corporation should be managed for the benefit of the stakeholders, who are defined as those groups and individuals who benefit from or are harmed by corporate actions. There is both a wide-definition and a narrow-definition of the stakeholder view.
