Corporate responsibility

Definition

The obligation of businesses to act ethically and contribute positively to society while considering the impact of their operations on stakeholders and the environment.

Etymology

The concept evolved from 1950s discussions about business ethics, with economist Howard Bowen's 1953 book 'Social Responsibilities of the Businessman' being foundational. The term 'corporate' comes from Latin 'corpus' (body), reflecting how businesses are legal entities with societal obligations beyond profit-making.

Kelly Says

This phrase represents a fundamental shift from Milton Friedman's 1970 doctrine that 'the business of business is business' to stakeholder capitalism. Modern corporate responsibility has become so integral that 88% of consumers now say they're more loyal to companies that support social or environmental issues.

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