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The Social Responsibility of Corporate Management: A Classical Critique
Calls for corporate social responsibility are widespread, yet there is no consensus about what it means; this may be its charm. However, it is possible to distinguish the fiduciary obligations owed to shareholders, as expressed by Milton Friedman, from all other paradigms of corporate responsibility. Friedman maintains that: “… there is one and only one […]
A Response to “The Social Responsibility of Corporate Management: A Classical Critique”
The preceding article, “The Social Responsibility of Corporate Management: A Classical Critique,” argues that the Shareholder Theory, which the authors refer to as the “Friedman Paradigm” represents the only intellectually and ethically meritorious model for assessing corporate social responsibility. This response argues that the 19th Century Shareholder Theory is based upon numerous factual and legal […]
The Enron Scandal and the Neglect of Management Integrity Capacity
The nature, value, and neglect of integrity capacity by managers and the adverse impacts that Enron executive practices have had on a range of stakeholders are delineated. An explanation is given on how moral competence in management practice is addressed by each dimension of the management integrity capacity construct (process, judgment, development, and system) and […]
Investing with a Conscience: An Evaluation of the Risk-Adjusted Performance of Socially Responsible Mutual Funds
This study evaluates risk-adjusted performance of socially responsible mutual funds during the period 1991-2000, using objective statistical measures grounded in modern portfolio theory. A socially responsible mutual fund is defined as one which employs “social screens” in stock selection, such as whether a firm manufactures tobacco products, whether it is in the gambling business, whether […]
Environmental Concerns, Effort and Impact: An Empircal Study
This study investigates the relationship between environmental concern, environmental effort and their impact on company performance. Results based on survey data from sixty companies indicate that there is a positive correlation between environmental concern and effort. In addition, positive correlations between effort and operations efficiency and company image were found. No significant correlation between environmental […]
Bankruptcy Prediction: The Case of the CLECS
The Telecommunications Act of 1996 led to the creation of the competitive local exchange carriers, known as CLECS (pronounced sea-lecks). Despite a strong beginning and great optimism, between January 2000 and September 2002, almost half of the publicly held CLECS filed for bankruptcy. Though their path to bankruptcy was typical, the atmosphere surrounding the CLECS […]
