Objectives

Analyze and discuss the fundamental issues of, and strategic management approaches and strategies for dealing with, Corporate Responsibilities to Stakeholders (CSR-- including Society).

Situation

You can consider the spectrum of philosophies and actions running from Milton Friedman at A to Ben & Jerry's at E, with all of the positions on the spectrum (A, B, C, D, E) being defensible CSR positions. For example, it is reasonable to suggest that a company should disperse dollars to shareholders, employee (in higher salaries), etc. and let them decide if or where money should be spent on what causes. Others are concerned with corporate senior managers making such decisions and having such power.

A third approach is that taken by Paul Newman and friends in setting up Newman's Own company and foundation. He set up a for-profit company that could operate like any other with a profit motive and concentration. He gave all of his stock (ownership ) to a foundation established in his name, so when the for-profit company pays dividends, they go to the foundation, and then the foundation makes decisions on social spending. A couple of dozen other companies have been set up in this fashion, but some IRS tax issues have been raised and must be settled for this to continue to be a viable alternative.

-Question: Write up-

What would be your recommendation to a profitable mid-size global company (you may select a "generic" company, a company in a specific industry or a specific company of your interest)