Corporate Social Responsabilities

2011 Words5 Pages
bulb-icon

Recommended: Different views in relation to corporate social responsibility

“Businesses who use company resources to benefit employees and the community [over and above] that of simply paying wages and taxes are violating their moral obligations to maximise profits for shareholders.” (PHI2043F Essay Topic) The aforementioned statement is one of many responses resulting from the discussion of what corporate social responsibility (in the realm of academics) is. Corporate social responsibility (in the realm of academics) is defined as “the discussion about the moral obligations of a business” (PHI2403F Week 3 Slides, 2014) and it introduces the theory of “how business should weigh the interests of its shareholders against the interests of other stakeholders.” through three differing models; The Narrowest View, Shareholder Primacy (also known as the moral minimum model) and The Stakeholder Model. Shareholder primacy is a concept whereby stakeholder interests are taken into consideration; however, the shareholders have the top priority over all stakeholders. According to shareholder primacy a business will only act in stakeholders’ interests if it has a legal obligation to do so. The above statement is an adaptation of how business executives may act in a way that violates ‘shareholder primacy’. I disagree with the statement made as I feel that in fact businesses have a moral obligation to serve all stakeholders and not just maximise profit for shareholders. I will be enhancing this position through introducing the models relevant to corporate social responsibility, and by; discussing, evaluating and refuting the two strongest arguments that support the moral minimum model and finally evaluating two arguments that are in favour of the stakeholder model. My position will then be further enhanced by attempting t...

... middle of paper ...

...es. I have done just that by refuting the two strongest arguments for Shareholder Primacy, by evaluating the two strongest arguments for the stakeholder model and rebutting any counter-arguments to them. The stakeholder model also allows for larger long term profits and potentially answers the discussion for corporate social responsibility in the academic realm.

Works Cited

Bowie, Norman, 1991, ‘New directions in corporate social responsibility – moral pluralism and reciprocity’, Business Horizonz, July-August.

Davies, Keith, 1975, ‘Five Propositions for Social Responsibility’, Business Horizons 18, 3, p.20

Business Ethics Slides (PHI2043F), Week 3, 2014.

Sternberg, Elaine, 2000, Just Business: Business Ethics in Action, Oxford University Press, p. 41

Winfield, J, 2014. Chapter Six:The moral obligations of business, “Business Ethics Reader”.

Show More
Related

  • Business Analysis: Chick Fil A

    2103 Words  | 5 Pages

    ...Foundational Considerations in the Corporate Social Responsibility Debate’, Business Horizons, vol. 34, no. 4, pp. 9-18.

    Read More

  • Milton Friedman's Essay Analysis of The Social Responsibility to Increase Profit

    720 Words  | 2 Pages

    To supply the wants and needs of a consumer, society entrusts wealth-producing resources to the business enterprise.” (Santayana, George. Is The Tyranny Of Shareholder Value Finally Ending? So before we go into greater detail on the different perspectives related to social responsibility, one might question the meaning of social responsibility. It is generally agreed that social responsibility is defined as the business obligation to make decisions that benefit society.... ...

    Read More

  • Friedman vs Freeman

    1937 Words  | 4 Pages

    This paper will have a detailed discussion on the shareholder theory of Milton Friedman and the stakeholder theory of Edward Freeman. Friedman argued that “neo-classical economic theory suggests that the purpose of the organisations is to make profits in their accountability to themselves and their shareholders and that only by doing so can business contribute to wealth for itself and society at large”. On the other hand, the theory of stakeholder suggests that the managers of an organisation do not only have the duty towards the firm’s shareholders; rather towards the individuals and constituencies who contribute to the company’s wealth, capacity and activities. These individuals or constituencies can be the shareholders, employees, customers, local community and the suppliers (Freeman 1984 pp. 409–421).

    Read More

  • Why Torture is Morally Wrong

    2139 Words  | 5 Pages

    Ciulla, J. B., Martin, C. W., & Solomon, R. C. (2007). Is "The Social Responsibility of Business... to Increase Its Profits"? Social Responsibility and Stakeholder Theory. Honest work: a business ethics reader (pp. 217-253). New York: Oxford University Press.

    Read More

  • Freeman's Stakeholder Theory Of Corporate Social Responsibility

    716 Words  | 2 Pages

    Corporate social responsibility has changed over the years, which causes organisations to adapt to ensure that the company is able to prosper. Corporate social responsibility refers to the company’s long-term view; proactivity and attaining more informed knowledge. Altruism is the unselfish concern for the welfare of others, the stakeholders in the company. Corporate social responsibility is an important concept understood by many businesses, be it small and medium enterprises or large and multinational organisations. Therefore, majority of organisations do not undertake corporate social responsibility initiatives primarily for altruistic reasons. This will be explained with reference to Friedman’s shareholder theory, Freeman’s stakeholder

    Read More

  • Corporate Social Responsibility Analysis: Wells Fargo

    958 Words  | 2 Pages

    An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.

    Read More

  • Business Ethics: Cost-Benefits Analysis

    921 Words  | 2 Pages

    Evan, W. M., & Freeman, R. E. (1988). A stakeholder theory of the modern corporation: Kantian

    Read More

  • The Social Responsibility Of Business Is To Increase Profits By Milton Friedman Analysis

    1760 Words  | 4 Pages

    Milton Friedman presents a compelling argument in “The Social Responsibility of Business is to Increase Profits” by arguing that businesses need to focus only on increasing their profits and integrating social responsibility will only hurt them as a company. Since “only people can have responsibilities” (Friedman 52), Friedman argues that businesses as a whole do not have any type of real responsibilities because there is not a singular person for these responsibilities to fall on. Corporate executives are people as well and may feel they have social responsibilities to society but these “are the social responsibilities of individuals, not of business” (51). In terms of corporations, the businessmen are the ones that hold the responsibility of the company. Friedman argues that the only responsibility these managers hold is to those who own the corporation, the shareholders. If the individuals themselves want to contribute to social responsibility they must do it with their own money in their personal lives, but they should not use social responsibility in

    Read More

  • Managerial Ethics

    1607 Words  | 4 Pages

    In today’s fast paced business world many managers face tough decisions when walking the thin line between what’s legal and what’s socially unacceptable. It is becoming more and more important for organisations to consider many more factors, especially ethically, other than maximising profits in order to be more competitive or even survive in today’s business arena. The first part of this essay will discuss managerial ethics[1] and the relevant concepts and theories that affect ethical decision making, such as the Utilitarian, Individualism, Moral rights approach theories, the social responsibility of organisations to stakeholders and their responses to social demands, with specific reference to a case study presenting an ethical dilemma[2], where Mobil halts product sales to a garage, forcing the garage owner to stop selling solvents to young people. The second section of this essay will focus on advice that should be given to any manager in a similar position to the garage owner with relevance to the organisational strategic management, the corporate objective and the evaluation of corporate social performance by measuring economic, legal, ethical and discretionary responsibilities. It will address whom to think of as stakeholders and why the different aspect could cost more than a manager or an organisation could have imagined.

    Read More

  • Stakeholders in Airport Decision Making

    1401 Words  | 3 Pages

    Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.

    Read More

  • Business and Social Responsibility

    1512 Words  | 4 Pages

    The problem that was investigated consisted of a question that Milton Friedman posed in one of his articles, which was featured in The New York Times Magazine in 1970. The question was, “What does it mean to say that “business” has responsibilities” (Friedman, 2007, p. 173)? Friedman (1970) elaborated on how businesses cannot have assigned responsibilities. Furthermore, he described how groups or individuals should be the only ones that can hold responsibilities, not businesses. He stated that associating responsibilities with the word business is too ambiguous. I will examine three discussion questions and three compare and contrast questions which Jennings (2009) posed in a case study that is related to Friedman’s (1970) article “The Social Responsibility of Business is to Increase its Profits”.

    Read More

  • Corporate Social Responsibility

    1916 Words  | 4 Pages

    Business organizations regularly run into demands from various stakeholders groups when conducting day-to-day business. These demands are generated from employees, customers, suppliers, community groups, governments, and shareholders. Thus, according to Goodpaster, any person or group of people that can shape or can be shaped by attainment of the objectives by an organization is considered a stakeholder. Most business organizations recognize and understand their responsibilities to these groups and endeavor to honor and fulfill them. These responsibilities are often communicated to the public by a statement of principles or beliefs. For many business organizations, corporate social responsibility (CSR) has become an essential and integral part of their business. Thus, this paper discusses the two CSR views: the classical view and the stakeholder view. Furthermore, I believe that the stakeholder view has brought ethical concerns to the forefront of businesses, and an argument shall be made that businesses would improve both socially and economically if CSR, guided by God’s love, was integrated into their strategic planning.

    Read More

  • Analysis Of The Film 'The Corporation'

    1967 Words  | 4 Pages

    The Corporation is a Canadian documentary film written by Joe Bakan, a law professor from British Columbia University and directed by Mark Achbar and Jennifer Abbott in 2003. Many issues related to the corporate world were discussed in the film including corporate social responsibility (CSR). CSR is generally quite a new concept being within the corporate industry where the recognition of the need to implement such theory within the business operations has only been widely practiced in recent times. Developed countries like France, Canada, United States and United Kingdom all have different interpretation of what’s CSR actually means due to their social and cultural differences while most of them seem to recognize the significance of triple-bottom

    Read More

  • The Importance Of Corporate Citizenship

    768 Words  | 2 Pages

    Examples of Stakeholder’s could be: managers, directors, employees etc. It is based upon a conceptual framework approach in which it provides moral and ethical values to a business organisation. When in practice, majority of organisations are mainly going to focus on corporate social responsibility. The reason for this is because CSR is seen to have a big impact on the firm as many people are recognising that there is a increasing number of businesses that are both socially and environmentally friendly. On the other hand, if the government doesn’t intervene with companies in terms of both regulation and legislation, this means that firms will only be concentrating on the accounting figures. If companies are primarily focusing on the accounting figures, this indicates that businesses are not taking in the social and environmental impact of the activities within the organisation. In (Liu, Fellows and Tuuli, 2011), it refers to corporate citizenship values in which it considers and identifies the different demands of the stakeholder groups to see where the overall value of the company comes from taking into thought the environment and

    Read More

  • Essay On Corporate Social Responsibility

    1275 Words  | 3 Pages

    Corporate Social Responsibility is all about the effort that a company applies that might be more what is being required by the environmental protection groups. Also, it is a responsibility that a company should take for its effects on the environment and on an impact for a social well-being. Moreover, Corporate Social Responsibility it is all about the ways that the companies manage with the process of their business which gives a positive influence on the society. Generally, the companies have to give an answer for their operation process such as the quality of their company’s management of the people and also, the quantity of the company’s impact in different areas of the society.

    Read More

More about Corporate Social Responsabilities

Open Document