Question

how do you structure the answer to the question: organisations adopt different stances on corporate social responsibility depending on how they perceive their role in society. Critically discuss the two governance models (the shareholder model and the stakeholder model) with reference to the strategic purpose of the firm.

Answer 1

Answer:

Shareholder Model:

This hypothesis was initially proposed by Milton Friedman in 1960. This hypothesis depicts that gaining benefit is the main rationale of an organization. It concentrates just on the investors and treats the executives as an operator. It expresses that on the off chance that the investors have put cash in our association, at that point we should give him the outcomes as well. It is the obligation of partnerships to satisfy the requirements of the investors. This hypothesis guarantees that the participation supervisor has an obligation to augment the arrival of investors and this should be possible just by expanding the benefits of our organization.

Stakeholder Model:

Partner incorporates providers, clients, investors, worker, and government. It additionally incorporates individuals who are in a roundabout way and legitimately identified with the association. In this hypothesis, it centers around the enthusiasm of the considerable number of individuals whether they are straightforwardly related or in a roundabout way. It is the obligation of the association to satisfy the necessities of society. It is a significant component of CSR as they go through some cash on the enthusiasm of society.