Question

Draw out a clear distinction between shareholder centric CSR and stakeholder centric CSR?

06 Sep 2023
Answer :
Word Count : 562

Shareholder-Centric CSR:

Shareholder-centric CSR, also known as profit-centered CSR, is an approach to corporate responsibility that places the primary emphasis on delivering value to shareholders and maximizing financial returns. Under this model, a company's primary obligation is to its shareholders, who have invested in the company with the expectation of generating profits. Key characteristics of shareholder-centric CSR include:

  1. Profit Maximization: The primary goal of shareholder-centric CSR is to maximize profits for shareholders. Companies following this approach often prioritize short-term financial gains over long-term sustainability.

  2. Limited Stakeholder Engagement: Shareholder-centric CSR tends to have a narrower view of stakeholders, focusing mainly on those directly involved in the company's financial success, ____ ________ _______ ___ ______ ___ ___ _______.
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