Reference no: EM133353253

Multinational companies in developing countries often refer to the Millennium Development Goals (MDGs) to identify stakeholders. The identification of stakeholders is based on the MDGs' aspects that companies decide to pursue. For example, Astra International in Indonesia launched a social mapping as an initial step of its CSR planning. The purpose of the mapping was to identify the demographic characteristics of the surrounding communities and to understand issues that the communities had as related to the MDGs.

Astra International. (2011). Sustainability report. Jakarta: Astra International-Indonesia

Questions

1. Does the organizational mission focus primarily on egoistic motives, such as maximum profit or maximum shareholder value, or primarily on philanthropic motives? Detail your answer with arguments to justify your response.

2. Does the value created by the organization accrue externally (for a broad variety of stakeholders) or internally (for owners)? Detail your answer with arguments to justify your response.