According to James Bresseau, which of the following is an important difference between corporate social responsibility theory (C
SR) and shareholder value theory (SHV)? -While CSR also holds that corporate decisionmakers have an ethical obligation to pursue profitability, unlike SHV, it does not necessary require MAXIMIZATION of profits.
-Unlike SHV, CSR holds that a corporation should comply not only with the letter of the laws, but also with their "spirit" (i.e., their broader objectives).
-Unlike SHV, CSR holds that corporations have a philanthropic obligation.
James Bresseau teaches that Corporations have a duty to be Corporately Responsible in terms of the Economy, Legal wise, Ethically, and Philanthropically.
He argues that money and profits are very important for a business to run but do not need to be maximised unlike in the Shareholder Value Theory where profits must be maximised for the benefit of the shareholder.
He argues that as much as they should abide by the law, they should also go a step further and act in moral ways by <em>listening to their spirit </em>and taking decisions that they know will be right for the society at large.
The Shareholder Value Theory does not speak of philanthropic ventures but rather ventures to bring wealth to the shareholder. CSR on the other hand believes that the society at large is a shareholder and so Corporations should engage in Philanthropic ventures to share wealth and help the people.
The present value can be calculated by multiplying annual cashflows with the discount factor. The table to calculate the Present Value has been made below.
Explanation: An association which affords licensed drivers the opportunity to come together and provide coverage or compensation for vehicle owners or insurers is the Joint Underwriting Association. Members of the association are usually composed of drivers who have been unable to obtain insurance the regular or private insurance companies usually due to the risk exposure level of the driver's or car owners. The joint Underwriting Association requires that members pay shares fees and share of pool losses. However, they are usually more affordable than the standard insurance coverage offered by most private insurance companies and thus provides an insurance lifeline to high risk drivers.
