David Henderson on Corporate Social Responsibility and the Role of Business Today

Geoffrey Owen, Tom Kirchmaier () and Jeremy Grant
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Geoffrey Owen: Interdisciplinary Institute of Management, London School of Economics and Political Science
Jeremy Grant: Graduate Institute of International Studies

Chapter 14 in Corporate Governance in the US and Europe, 2006, pp 79-83 from Palgrave Macmillan

Abstract: Abstract Defenders of corporate social responsibility argue that firms should widen their objective to include the society and the environment at large, besides their objective to maximise the return on capital. The argument is that by gaining a better reputation through CSR, firms will improve their longterm advantage. Henderson pointed out that it is not at all clear that firms serve their society better by including a notion of society and environment as a company’s objective. In addition, as these objectives are not developed in a political process, there is the risk of capture by interest groups. This will eventually lead to the misallocation of capital and substantial costs for society.

Keywords: Corporate Social Responsibility; Corporate Governance; Market Economy; Economic Freedom; Private Business (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-51245-0_14

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DOI: 10.1057/9780230512450_14

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