In summary, Schoenjahn’s article – “New Faces of Corporate Responsibility: Will New Entity Forms Allow Businesses to Do Good” – focuses on the fact how corporations oversee their social responsibility while still observing the jurisdiction of the shareholder primacy. In addition, this article focuses on how courts interpret and implement the shareholder primacy and its effects on the corporate world. However, maintaining a balanced relationship between shareholder primacy and social responsibility proves to be a challenge to most business entities. Business entities fail to construct effective strategies that will germinate into a profitable business in the marketplace without a violation of the fiduciary responsibility. Section two of the article summarizes the history of shareholder primacy. Section three of the article critically provides an analysis of corporate responsibility and its effect on the traditional business world. In section four, the article provides innovative ideas for new forms of corporate responsibility. Moreover, section four of the article demonstrates how companies can transform their low profits into immense annual turnovers.
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Research conducted in 2008 revealed that most corporations actively participated in charitable events that focused on social development projects. However, funds donated to these events represent a minute fraction of income generated by business entities in the USA. Moreover, the research revealed that 99 per cent of corporate organizations concentrated more on profitable ventures than their charitable causes. In reference to the Dodge hearing of 1986, the shareholder supremacy grants corporate directors with the power to make critical decisions that do not necessarily result into profitable ventures. In reference to creative capitalism, business mogul Bill Gates suggests that corporations should take advantage of charitable ventures as free publicity platforms. However, not every scholar agrees with Bill Gates’ proposal; they argue that publicity is not enough. They claim that profit incentives should be the principal objective for companies to participate in charitable events. Companies that participate in charitable events because of free publicity effectively need to market their campaigns if they wish to remain successful in the competitive market environment.
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