Outline
      ▪ Introduction
      ▪ Free-Market view (Friedman)
      ▪ US-Liberal view (Arrow)
      ▪ Contractual view
      ▪ Cognitive view
                               
                   Introduction
                           
            CSR raises mix of positive and 
                    normative questions
      ▪ Positive
          ♦ How the firm is seen by society and stakeholders
          ♦ What is CSR?
          ♦ What does it entail?
      ▪ Normative
          ♦ What should society demand from firms?
             • Profits
             • Legal compliance
             • Ethical behavior
             • If ethical behavior, who should define it?
          ♦ In any case, how should firms react?
                                    
            The Free-Market View
                           
                    Free-Market View
      ▪ A. Smith: individual interest  collective good
           See “A Map of CSR” next
      ▪ Friedman ‘70: firms should aim for profits within the 
         law
          ♦ The law of which country now? 
          ♦ Which checks and balances to define the law? 
      ▪ Jensen ‘02: many objectives = no objective + more 
         opportunism (e.g., managerial shirking)
          ♦ “Social” label as a disguise of private interests  e.g., see 
            CSR as sale of indulgences, in next slides