The Classical Economic
Model (Adam Smith)
An “invisible hand”
promoted the public welfare. The public interest served by individuals pursuing
their own economic self-interests. According to the classical economic model of
business, profitability and social responsibility are the same thing.
The Socioeconomic Model
Business has an obligation
to meet the needs of the many groups in society besides stockholders in its
pursuit of profit. Stakeholder audit: Systematically identifying all the
parties that could possibly be affected by the company’s performance.
Sample Stakeholder Audit
for Wal-Mart, the World’s Largest Retailer
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