(Carroll, 1979).
Andrew Carnegie’s Principle of Wealth Creation
Andrew Carnegie was a Scottish American industrialist and became one of the philanthropist leader in American and British empire. He wrote his views about social responsibilities of business in Triumphant Democracy (1886) and Gospel of Wealth (1889). He talked about two principles of wealth. First is the principle of charity which requires the most fortunate member of society to assist less fortunate. Second is steward principle which requires business and wealthy individuals to view themselves as stewards or care takers of their property. The second principle is derived from christen bible and other places. The above two principles shows that Carnegie believes in mutuality in business relationships and understands the connection between business and society. He gave most of his earnings to charities, universities and foundations. He built many libraries in US, Canada, Britain and many other countries. Carnegie’s tradition of corporate philanthropy is being …show more content…
According to Carroll, a company have mainly four responsibilities: economic, legal, ethical and philanthropic. These responsibilities are described in the form of pyramid.
Economic Responsibility: This responsibility is the most important responsibility for any business. This involves the activities which will directly or indirectly affect the bottom line of the company. Business focusses on maximizing profit and increasing shareholder’s value. Business is an economic entity of the society which produces and sells the product. It helps in wealth creation in the society, therefore it is the most eminent responsibility of business and other responsibilities relies on this domain. Majority of the activities in the business falls in this domain. Nevertheless there are many activities that doesn’t result in maximization of the
Andrew Carnegie’s Principle of Wealth Creation
Andrew Carnegie was a Scottish American industrialist and became one of the philanthropist leader in American and British empire. He wrote his views about social responsibilities of business in Triumphant Democracy (1886) and Gospel of Wealth (1889). He talked about two principles of wealth. First is the principle of charity which requires the most fortunate member of society to assist less fortunate. Second is steward principle which requires business and wealthy individuals to view themselves as stewards or care takers of their property. The second principle is derived from christen bible and other places. The above two principles shows that Carnegie believes in mutuality in business relationships and understands the connection between business and society. He gave most of his earnings to charities, universities and foundations. He built many libraries in US, Canada, Britain and many other countries. Carnegie’s tradition of corporate philanthropy is being …show more content…
According to Carroll, a company have mainly four responsibilities: economic, legal, ethical and philanthropic. These responsibilities are described in the form of pyramid.
Economic Responsibility: This responsibility is the most important responsibility for any business. This involves the activities which will directly or indirectly affect the bottom line of the company. Business focusses on maximizing profit and increasing shareholder’s value. Business is an economic entity of the society which produces and sells the product. It helps in wealth creation in the society, therefore it is the most eminent responsibility of business and other responsibilities relies on this domain. Majority of the activities in the business falls in this domain. Nevertheless there are many activities that doesn’t result in maximization of the