“Social Responsibility – Doing Good While Also Making Money And Protecting Owner Interests”
Profit Maximization, Social Responsibility and
Organizations Designed to Provide a Public Benefit
Panel at the Colorado Bar Association’s Business Law Institute, October 29, 2015
Introduction and Questions (Without Answers)
By Herrick K. Lidstone, Jr.
Burns, Figa & Will, P.C.
“There are a huge number of issues surrounding corporate/entity social responsibility. Even understanding what “social responsibility” is in this context has a divergent path. For the purposes of this discussion, it can be described as “Doing Good While Also Making Money And Protecting Owner Interests.” This demonstrates the potential conflict – should an investor in a business entity (the owner) look to the entity to “do good” or merely to comply with legal requirements (do not pollute; do not violate the law) while making money for the owners (profit maximization). Should the owner have a say in the business entity’s choices? Should an entity selling t-shirts worry about the workers in Bangladesh? Should an entity selling coffee worry about how it is grown and harvested? Should an entity selling beef burritos worry about how the cattle are slaughtered?”
This article includes engaging questions such as: “Is there a religious and moral side to profit maximization and corporate social responsibility?,” “Is It A Question of Marketing?,” and “Is it the Millennials (born 1980-1995) versus the Baby Boomers (born 1945-1960)?” Read the full article here.
