Corporate Responsibility
Activists are often unhappy with the laws governing business behavior and with their enforcement. One strategy they use to alter the behavior of corporations is to target not the laws but the corporations, hoping that they will change without being...
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| Format: | Viewpoint |
| Language: | English |
| Published: |
Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2004/05/4971605/corporate-responsibility http://hdl.handle.net/10986/11270 |
| Summary: | Activists are often unhappy with the
laws governing business behavior and with their enforcement.
One strategy they use to alter the behavior of corporations
is to target not the laws but the corporations, hoping that
they will change without being legally obliged to. Sometimes
firms do, because they would rather incur the costs of
behaving better today than the costs of being shamed later.
But how does this reputational mechanism work? Will it
achieve the right standards? Which companies will it affect?
And are there good reasons to prefer it to alternative ways
of setting standards? |
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