https://milnepublishing.geneseo.

edu/good-corporation-bad-corporation/chapter/1-
corporations-and-their-social-responsibility/
For corporate employees, as for citizens living in communities dominated by large
corporations, the corporation is arguably the most important form of social
organization. 
Every country has laws that stipulate how corporations can be created; how they
must be managed; how they are taxed; how their ownership can be bought, sold, or
transferred; and how they must treat their employees. Consequently, most large
corporations have large legal and government affairs departments.
“An externality,” says economist Milton Friedman, “is the effect of a transaction…on a third party who
has not consented to or played any role in the carrying out of that transaction.” All the bad things that
happen to people and the environment as a result of corporations’ relentless and legally compelled
pursuit of self-interest are thus neatly categorized by economists as externalities—literally, other
people’s problems.

“We mean business when it comes to enforcing some of the toughest requirements
for children’s products in the world. If an imported product fails to comply with our
safety rules, then we work to stop it from coming into the United States,” said
Chairman Inez Tenenbaum. “Safer products at the ports means safer products in
your home.”

Since GDP was about $10.5 trillion in 2002, the cost of air pollution was a bit under
2% of the total. The effects included in the model calculations are adverse
consequences for human health, decreased timber and agriculture yields, reduced
visibility, accelerated depreciation of materials, and reductions in recreation services.

https://openstax.org/books/business-ethics/pages/3-4-corporate-social-responsibility-csr
In recent years, many organizations have embraced corporate social responsibility (CSR), a
philosophy (introduced in Why Ethics Matter,) in which the company’s expected actions include not
only producing a reliable product, charging a fair price with fair profit margins, and paying a fair wage
to employees, but also caring for the environment and acting on other social concerns. Many
corporations work on prosocial endeavors and share that information with their customers and the
communities where they do business.

Destruction of the environment can ultimately lead to reduction of resources, declining business
opportunities, and lowered quality of life. Enlightened business stakeholders realize that profit is only
one positive effect of business operations.

The TBL concept recognizes that external stakeholders consider it a corporation’s responsibility to
go beyond making money. If increasing wealth damages the environment or makes people sick,
society demands that the corporation revise its methods or leave the community. Society,
businesses, and governments have realized that all stakeholders have to work for the common
good. When they are successful at acting in a socially responsible way, corporations will and should
claim credit. In acting according to the TBL model and promoting such acts, many corporations have
reinvested their efforts and their profits in ways that can ultimately lead to the development of a
sustainable economic system.

Currently 20 percent of the people on Earth consume a Coca-Cola product each day, meaning a
very large portion of the global population belongs to the company’s consumer stakeholder group.
Depending on the process and location, it is estimated that it takes more than three liters of water to
produce a liter of Coke. Each day, therefore, millions of liters of water are removed from the Earth to
make Coke products, so the company’s water footprint can endanger the water supplies of both
employee and neighbor stakeholders.

Due to the triple bottom line, the environment is the largest circle, which is the creation of life and
everything depend on. Then inside the “environment” is the “society” line, exists within the
environment, and “economy” is the byproduct of the “society”.

TED:

- “There is one and only one social responsibility of business – to use its resources and
engage in activities designed to increase its profit” Milton Friedman
- Harish Mawani: “Value and purpose are the two key factors that create the companies
tomorrow”
- Unilever is not just selling soap, but also saving the life of millions of poor children under 5
ages out there whose their lives harmed by outside infection
 Small actions and make huge changes
 We are not changing our lives alone, we need partnership, coalition, and especially
leadership, all the stakeholders, to make the change the we want to see around us.

"Stakeholder Theory is an idea about how business really works. It says that
for any business to be successful it has to create value for customers,
suppliers, employees, communities and financiers, shareholders, banks and
others people with the money. It says that you can't look at any one of their
stakes or stakeholders if you like, in isolation. Their interest has to go
together, and the job of a manager or entrepreneur is to work out how the
interest of customers, suppliers, communities, employees and financiers go in
the same direction. Now, think about how important each of these groups is
for business to be successful, think about a business that's lost its edge with
its customers that has products and services that its customers don't want as
much or that they don't want at all that's a business in decline. Think about a
business who manages suppliers in a way that the suppliers don't make them
better. The suppliers just take orders and sell stuff, but the suppliers aren't
trying to make a business more innovative, more creative that's a business
that's in a holding pattern and probably in decline. Think about a business
whose employees don't want to be there every day who aren't using a
hundred percent of their efforts and they're energy and their creativity to make
the business better that's a business in decline. Think about a business that's
not a good citizen in the community that routinely ignores or violates local
custom in law. That doesn't pay attention to the quality of life in the
community, doesn't pay attention to issues of corporate responsibility of
sustainability, of its effects uncivil society that's a business that soon to be
regulated into decline. Think about a business that doesn't create value
doesn't create profits for its financiers, its shareholders, banks and others,
that's a business in decline So stakeholder theory is the idea that each one of
these groups is important to the success of a business, and figuring out where
their interests go in the same direction is what the managerial task and the
entrepreneurial task is all about. Stakeholder theory says if you're just focused
on financiers you miss what makes capitalism tick. What makes capitalism tick
is that shareholders and financiers, customers, suppliers, employees,
communities can together create something that no one of them can create
alone." Professor Edward Freeman

Economist Milton Friedman, whose work shaped much of 20th-century corporate

America, was a believer in the free-market system and no government intervention. This
belief helped shape his shareholder theory of capitalism: that a company’s sole
responsibility is to make money for its shareholders. 

Also called the “Friedman doctrine,” shareholder theory, outlined in Friedman’s book
“Capitalism and Freedom,” states that a company has no real “social responsibility” to
the public, since its only concern is to increase profits for the shareholders. The
shareholders, in turn, would privately shoulder any social responsibility.

When Edward Freeman first published his book about stakeholder theory in 1984, it
raised awareness of the relationships and the ripple-effect of a company and its many
stakeholders.

It suggests that a company’s stakeholders include people like employees, customers,

community members, competitors, vendors, contractors, and shareholders.
Stakeholders could also be institutions, like banks, governmental bodies, oversight
organizations, and others. 

“If you think about it, it makes sense,” Freeman said in an interview. “All company
stakeholders are interdependent. And a company creates value - or should, for its own
success - for all of them.”