business organization  The social role of the large company
Some company executives believe that their companies should act
as “responsible” public institutions, holding power in trust for
the community. Most companies engage in at least some public-
service projects and make contributions to charities. A certain
percentage of these donations can be deducted from a
corporation’s taxable income. Most of the donated money goes to
private health, education, and welfare agencies, ranging from
local hospital and charity funds to civil rights groups and
cultural institutions.  At the other extreme, it is generally
agreed that companies should reject the notion that they have
public duties, that society as a whole will be better off if
companies maximize their profits, for this will expand
employment, improve technology, raise living standards, and also
provide individuals with more money to donate to causes of their
own choosing. A cornerstone of this argument is that management
has no right to withhold dividends.