chapter  4
17 Pages

Public Policy

Both social responsibility and stakeholder theory were plagued by individualism that permeated their formulation and application. In social responsibility, business and society were considered to be separate entities and were not integral to each other’s existence. In stakeholder theory, stakeholders were also considered to be separate entities and were not integral to the corporation’s existence. In both theories, corporate management remained the locus of agency in that they decided what social issues were important and what stakeholder issues deserved consideration, making management accountability a problem in both approaches. Consequently, neither idea provided much of a challenge to the philosophical underpinnings of capitalism and business did not respond on anything like a large enough scale to make much of a difference in regard to either social or stakeholder issues.