Hansmann’s The Possession of Enterprise is absolutely essential reading for anyone who desires to understand the connection betwen managers, shareholders, and different stakeholders. For example, Rawls has been interpreted as offering a critique of offshore outsourcing on social contract grounds, whereas Nozick’s libertarian philosophy rejects the notion of any constructive corporate social obligation. Most assume that folks should have the ability to pursue projects, including economic tasks, that matter to them, even if those initiatives don’t maximize welfare.
He distinguishes three (appropriate) views: (1) the contract view”, in line with which the producer’s obligation is to accurately disclose all dangers related to the product; (2) the due care view”, according to which the manufacturer ought to train due care to forestall patrons from being injured by the product; and (three) the social costs view”, in accordance with which the manufacturer should pay for any accidents the product causes, even when the producer has exercised due care to stop damage and has precisely disclosed all dangers related to the product (see also Boatright 2009a).
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Those within the managerial energy” camp believe that CEOs wield energy over boards of directors, and use this energy to extract above-market rents from their companies (Bebchuk & Fried 2004). Phillips (1995), in contrast, argues that in some circumstances no individual worker in a firm is liable for the harm a agency causes.
Scherer, A.G. & G. Palazzo, 2007, Towards a Political Conception of Corporate Duty: Business and Society Seen from a Habermasian Perspective”, Academy of Management Overview, 32(four): 1096-1120. In simplified fashions of the market, individual patrons and sellers are worth-takers”, not worth-makers”.