THE NEW MEANING OF CORPORATE SOCIAL-RESPONSIBILITY

While many contemporary American corporations continue to exemplify hi gh levels of corporate social responsibility, virtually all publicly h eld firms are finding themselves under growing pressure from the inves tment community to maximize shareholder value. As a result, the intere sts of the firm's non-shareholder constituencies are being neglected. The government must step in and function as arbiter, enacting rules an d 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 remaini ng vehicle for the expression of non-shareholder stakeholders, if corp orate managers wish to be free to maximize shareholder value, it is in appropriate for them to also participate in shaping public policy.