ABSTRACT
In a free enterprise production system, managers are employees of business owners (shareholders), in an arrangement that burdens managers with the responsibility of conducting the business in ways that align with owners’ interests – wealth maximization. This fairly universal definition is very much in line with Berle and Means’ (1932, 1991) near-seminal view that the ownership and control of businesses are essentially two distinct objectives, and this view has since become a received wisdom by many firms across the globe. However, the more strategically encompassing model of corporate social responsibility (CSR) has challenged firms to consider the interest of all stakeholders (shareholders, customers, suppliers, employees, host communities, governments and the general public) who have interests beyond the financial gains of the firm (Freeman 2010), instead of focusing only on shareholders’ interest when making business decisions.
