Social Responsibility, Corporate Constituency Statutes, and the Social Benefit Corporation

Company owners, shareholders, and investors expect a positive return on their investments. However, business is further expected to achieve this economic value in conformity with the social norms in the community. That is, business must act in a profitable, legal, and moral manner and also to do so in a socially responsible manner. As such, above and beyond the responsibility to act legally and morally in the pursuit of profit is the notion of social responsibility, which typically today in a business context is called “corporate social responsibility” (CSR). This article discusses the concepts of social responsibility, corporation constituency statutes, and the social benefit corporation in a modern-day global business environment. Suggestions and recommendations for managers and organizations are provided.