Reverend Leon H. Sullivan, a Baptist minister from Philadelphia, who was also a member of the board
Question:
Reverend Leon H. Sullivan, a Baptist minister from Philadelphia, who was also a member of the board of directors of General Motors Corporation, proposed a set of rules to guide American-owned companies doing business in the Republic of South Africa. The Sullivan Principles, as they became known, call for the nonsegregation of races in South Africa. They call for employers to (a) provide equal and fair employment practices for all employees and (b) improve the quality of employees’ lives outside the work environment in such areas as housing, education, transportation, recreation, and health facilities. The principles also require signatory companies to report regularly and to be graded on their conduct in South Africa. Eventually, several hundred U.S. corporations with affiliates doing business in South Africa subscribed to the Sullivan Principles. Which of the following theories of social responsibility are the companies that subscribed to the Sullivan Principles following: maximize profits, moral minimum, stakeholder interest, or corporate citizenship? To put additional pressure on the government of the Republic of South Africa to end apartheid, Reverend Sullivan called for the complete withdrawal of all U.S. companies from doing business in or with South Africa. Very few companies agreed to do so. Do companies owe a social duty to withdraw from South Africa? Should universities divest themselves of investments in companies that do not withdraw from South Africa?
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