Question

In the landmark Dodge v. Ford case in 1919, the Michigan State Supreme Court determined whether Henry Ford could withhold dividends from the Dodge brothers (and other shareholders of the Ford Motor Company) to engage in what today would be called CSR initiatives. With a resounding “No,” the court opined, “a business organization is organized and carried on primarily for the profits of the stockholders.” If the court in your country were to decide on this case this year (or in 2019), what do you think would be the likely outcome?

Answer 1

answer-

If this was the case in today's time, then i would tell that outcomes would be different because now the company and its owner are expected to do business which should benefit the society. Now, law has passed companies to involve in CSR activities. Corporate social responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders. CSR is a concept with many definitions and practices.

In all stakeholders, the ford company should consider customers, employees and society at large. so doin charitable work is not illegal also it would improve the corporate image of FORD which would benefit the minority stakeholders who opposes the strategy of ford in the first place.