Essay about Corporate Social Responsibilities

1378 Words Feb 16th, 2011 6 Pages
CORPORATE SOCIAL RESPONSIBILITY
The term social responsibility means different things to different people. Generally, corporate social responsibility is the obligation to take action that protects and improves the welfare of society as whole as well as organizational interests. According to the concept of corporate social responsibility, a manager must strive to achieve both organizational and societal goals.
Current perspectives regarding the fundamentals of social responsibility of businesses are listed and discussed through (1) the Davis model of corporate social responsibility, (2) areas of corporate social responsibility, and (3) varying opinions on social responsibility.
A model of corporate social responsibility that was
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The best-known argument supporting such activities by business is that because business is a subset of and exerts a significant impact on society, it has the responsibility to help improve society. Since society asks no more and no less of any of its members, why should business be exempt from such responsibility? Additionally, profitability and growth go hand in hand with responsible treatment of employees. customers, and the community. However, studies have not indicated any clear relationship between corporate social responsibility and profitability.
One of the better known arguments against such activities is advanced by the distinguished economist Milton Friedman. Friedman argues that making business managers simultaneously responsible to business owners for reaching profit objectives and to society for enhancing societal welfare represents a conflict of interest that has the potential to cause the demise of business.
According to Friedman, this demise almost certainly will occur if business continually is forced to perform socially responsible behaviour that is in direct conflict with private organizational objectives. He also argues that to require business managers to pursue socially responsible objectives may be unethical, since it requires managers to spend money that really belongs to other individuals.
Regardless of which argument or combination of arguments particular managers might support, they

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