Article Abstract:
While many contemporary American corporations continue to exemplify high levels of corporate social responsibility, virtually all publicly held firms are finding themselves under growing pressure from the investment community to maximize shareholder value. As a result, the interests of the firm's non-shareholder constituencies are being neglected. The government must step in and function as arbiter, enacting rules and regulations that define what we expect of corporations in the way of such things as working conditions, environmental protection, and job training. But since the political process constitutes the only remaining vehicle for the expression of non-shareholder stakeholders, if corporate managers wish to be free to maximize shareholder value, it is inappropriate for them to also participate in shaping public policy. (Reprinted by permission of the publisher.)
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Article Abstract:
Many corporations now recognize the importance of establishing a "proactive" environmental strategy. This article develops a framework for environmental strategy implementation based on case studies of three firms: Volvo, Polaroid, and Proctor & Gamble. The degree to which each firm's environmental strategy focuses on market or nonmarket areas reflects its existing core competencies. Effective implementation of this strategy often requires new environmental management systems, which need to be designed in ways that remove organizational buffers and integrate well with existing core activities. However, while tailoring programs to fit existing activities is useful in the initial stages of implementation, it sometimes creates its own set of problems as environmental programs mature. (Reprinted by permission of the publisher.)
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Article Abstract:
The Chrysler Loan Guarantee Act, which served to rescue the ailing corporation from financial disaster, raised other questions concerning the social and economic ramifications of corporate crises and federal aid. Questions center around whether the specialized case of Chrysler can be used to justify more general government aid to industry and whether such a role for government is appropriate.
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