Milton Friedman’s quote on “there is one and only one social responsibility of business---to use its resources and engage in activities designed to increase its profits” can actually be seen in different perspectives. Company can also be socially responsible by contributing towards the community through what they do best: excelling in economic terms (Brusseau, 2012). When corporations are making profits, most of it gets sent back into the economy and everyone benefits. Jobs are created, and those that already exist get some added security. More successful corporations mean the increase of the country’s economy, which in turn lead to a social benefit for the society that offers better living conditions.
2.2 CORPORATE SOCIAL RESPONSIBILITY Corporate social responsibility (CSR) or CSR activity is seen as a complex and contested area, which is rapidly gaining importance from businesses all over the world (Vaaland & Heide, 2008). Mintzberg (1983), refers to Elbing (1970) when he states that the concept of social responsibility has been discussed academically by professors, pragmatically by businessmen, politically by public representative and approached from various angles philosophically, psychologically, sociologically, economically even aesthetically. The complexity of the concept has lead to variations of definitions some boarder than others with no consensus on a generally accepted definition. The difficulty with defining CSR sterns from
ABSTRACT Corporate Social Responsibility (CSR) is a management concept where the companies strive to do good for the society, more than what the law demands. While the term is not new, the way CSR is viewed has been gradually evolving. What was once considered a waste of capital, is now being used to venture into international markets, create trust amongst stakeholders, strengthen the brand and ensure sustainable development. CSR is distinct from philanthropy, charity or sponsorship since it helps the company with more than just reduction of poverty or protecting the environment. These companies aim to achieve sustainable global development by following a more comprehensive set of working objectives than just profit alone.
4BCT - Ronan Carr (12363236) 20th November 2015 CT436: Business Ethics Essay Analyse Milton Friedman’s position that the only social responsibility of a business is to increase its profits for its shareholders. Do you agree? Discuss in relation to examples from the IT industry. Milton Friedman was an American economist who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the complexity of stabilization policy. In 1970 Friedman wrote an article in The New York Times Magazine, where he says he believes the social responsibility of a business is to increase its profits.
Why or why not? What should or could Mattel have done differently? Holme and Watts stated in Making Good Business Sense that corporate social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. It is important that businesses act in a social responsible and ethical manner in order to give the business a good image and not create bad publicity for themselves, so that they can try and make sure to have repeat custom instead of losing the
It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which states that a firm can never exist In a vacuum (Khalidah et. al.). Volkswagen has Corporate Social Responsibility embedded into its company’s culture and values.
Profit-Oriented or Socially Responsible? 2 Corporate Social Responsibility (CSR) plays a crucial role in organizations and societies. Traditionally, CSR is a management concept that has been implemented by most of the listed companies around the world. CSR is implemented by companies to be responsible for the company’s consequences on the environment and social welfare in their business operations and interactions with their stakeholders (Unido, n.d). In the other words, CSR is a program that benefits both society and business that do not provide immediate financial benefit to the company but environmental change and positive social (Investopedia,
Table of Contents Miji Kim Patrick Klocek Extended Essay January 19th, 2018 To what extent has globalization impacted Corporate Social Responsibility in Asia? Corporate Social Responsibility, or so called “CSR,” can be defined as a corporation’s initiatives to assess and take responsibility for the company’s effects on environmental and social wellbeing. (Staff 2) The concept of CSR is very recent in terms of the entire world; but even more recent in case of Asia. For example, it has only been 8 years since Malaysia and Philippine encouraged requirement of reporting corporate transparency on “environmental issues and social issues.” (Citation will be added here) Corporate Social Responsibility can be distinguished
CSR literature is still lacking commonly accepted definition of Corporate Social Responsibility (Carroll, 1991; Garriga & Melé, 2004; T.M. Jones, 1995; Kakabadse, Kakabadse, & Rozuel, 2007; McWilliams & Siegel, 2001). According to the well known and widely cited definition of CSR, “the social responsibility of business encompasses the financial, lawful, principled and unrestricted hope that society has of organizations at a given point of time” (Carroll, 1979, p. 500). In nastiness of the growing consequence of CSR, the literature still lacks its commonly accepted definition (Carroll, 1991; Garriga & Melé, 2004). Some scholars (Matten & Crane, 2005; McIntosh, Thomas, Leipziger, & Coleman, 2002) do not endorse Carroll’s interpretation of CSR.
According to Davis, Social Responsibility is a great idea but should be considered in a managerial context. The decade of 1960 was an important decade for Corporate Social Responsibility. Many attempts were made to formalize its meaning and to establish one, unique and accurate definition and many companies started publishing corporate social reports. People were motivated to take into consideration Corporate Social Responsibility and they pushed companies towards social