Social Responsibility and Economic Theory
Social Responsibility and Economic Theory
A business ethic must be compatible with economic theory, as well as economic ideology, to be widely accepted. The theory of the firm is the division of economic theory dealing with the motivation and behaviour of the firm and manager. In its traditional form it is not compatible with the doctrine and ethic of social responsibility.
Many economists are dissatisfied with the theory of the firm, however, because of the unrealistic assumptions upon which it is based. Modifications and revisions which put the theory into closer touch with reality are moving it toward a general theory of the firm in which the concept of social responsibility has a legitimate place.
This website analyzes two lines of thought that integrate social responsibility into the theory of the firm. The first views social responsibility in terms of utility maximization, and the second views it as a means of social control over the manager.
Next - Status Strengths of The Small Business
- The Economic Theory of The Firm
- The support that we offer to businesses
-
Discover the T-Mobile business services available online with T-Mobile. T-Mobile offers the latest in mobile phone technology including mobile internet and email
-
Organizational Structure
Social Responsibility and Economic Theory
Fresh Approach to Doing Business
Suppose a decision must be made whether or not to move a branch plant from a small town in which it is the economic mainstay to another area where production costs are lower.
The Global Recession
Whichever decision is made will have differential effects on the various groups involved. If the move is made and production costs are appreciably lower, profits may go up and lead to higher stockholder dividends; hourly earnings of workers may go up because of increased productivity; and customers may get a better product, a lower price, or both.
Business Development
On the other hand, the small town may become economically stagnant, and workers who are well settled in the town may face the choice of dislocation (and perhaps a cut in wages) or loss of job.
Tweets about "UK Business Advice"