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Arguments on the need for corporate social responsibility
Arguments on the need for corporate social responsibility
Arguments on the need for corporate social responsibility
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This reading essay is a review of the following article:
Windsor, D. (2001). The future of corporate social responsibility. International Journal of Organizational Analysis, 9 (3): 225-256.
Duane Windsor, via the aforementioned article regarding the future of social responsibility, purports “there are three emerging alternatives or competitors to responsibility: (1) an economic conception of responsibility; (2) global corporate citizenship; and (3) stakeholder management practices (pg. 225).” Windsor first provides a historical reflection of social responsibility beginning in the Progressive Era through the twentieth century and concludes with predictions for the future of corporate social responsibility. Corporate social responsibility, although not widely discussed or defined until post World War II, can be dated back to Ancient Rome as citizens exhibited a sense of civic responsibility. Andrew Carnegie, a man now compared to modern business tycoons/philanthropists such as Warren Buffett and Bill Gates, published this concept in the 19th century. Windsor does note, however, Carnegie’s philanthropic acts and published views followed his extensive success and wealth as a business mogul. Despite early literature discussing the importance of businesses responsibility to societal success rather than solely on shareholder profits, Windsor shares his interpretation of “anti-responsibility trends” in recent literature. He emphasizes, throughout this article, a concern regarding “wealth-oriented practices” dominating the future of corporate social responsibility. Windsor reviews prominent corporate social responsibility theorists who all contributed greatly to the distinctions between responsibility and responsiveness businesses have to ...
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...cision on what is acceptable behavior and what the acceptable response to those who violate the set norm. In my research during this past week, I found an audio clip of Duane Windsor. He made a statement, which I ultimately discussed in our discussion groups regarding the emphasis on the meaning behind philanthropic deeds of businesses. Windsor stated that he believed it was “okay to comply with corporate social responsibility for the wrong reason as long as they (businesses) comply.” He explained that, although not ethical, the deed itself sufficed as “CSR progress.” I found that to be a compelling point. I compared that to my theory on compliance with traffic laws. I would rather people comply with the traffic laws than believe in them. I suppose that puts me in the corner of advocating for responsiveness leading fulfillment of corporations’ social responsibility.
Lantos, GP, 2001, ‘The boundaries of strategic corporate social responsibility’, The Journal of Consumer Marketing, vol. 18, no. 7, pp. 595-639.
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.... ...
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.
Where profit is concerned, the idea of social responsibility has always been linked hand in hand. Social responsibility is that ‘X Factor’ in which a business or individual goes beyond the requirement of a law to pursue short and long term goals to benefit society. It is having an interest not only in your wellbeing, but taking into account the interests and concerns of the community as well. Friedman tries to prove that by taking into account social responsibility a business will fail in the long run and has no obligation of social responsibility to begin with. There are two major supporting arguments brought up by Friedman which I will address in this essay. First, that “a corporation is an artificial person and therefore cannot be socially responsible”. Second is that “if social responsibility is exercised it is acting against the shareholders, owners of the business”. In summary, their main goal should be to act in their shareholders' best interests and that acting "responsibly" would ultimately harm a business’s profit and in terns its shareholders in the name of being so...
Author Nicole Fallon wrote an article where she defined corporate social responsibly. In this article, What is Corporate Social Responsibility, published on businessdailynews.com, Fallon states, “Corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that benefit society. When comparing this definition of corporate social responsibility to the actions of Company Q, it is safe to say that their actions are not socially responsible. Company Q does not want to donate food to the local food bank because they fear that their own employees will steal. Theft by employees, or possible theft, should not affect the grocery store chain gives back to the community. Company Q would rather throw everything
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
The article “The Social Responsibility of Business is to Increase its Profits” is written by a famous economist Milton Friedman. Friedman in this article implies that shareholders are the main drivers of the corporations and he believes that it is to them corporations must be socially responsible to. The goal of any corporation is to maximize profits and return the portion of these profits to shareholders for investing in the corporation. The shareholders can themselves decide which social causes to take part in rather than assigning a corporate executive to decide on their behalf. Friedman argues that a corporation must have no social responsibility to society because its only concern is the increase profits for itself and its shareholders.
Kanji, G. K., & Chopra, P. K. (2010). Corporate social responsibility in a global economy. Total Quality Management & Business Excellence, 21(2), 119-143. doi:10.1080/14783360903549808
Vogel, D., 2005. The market for virtue the potential and limits of corporate social responsibility. Washington, D.C.: Brookings Institution.
While the concept of an individual having responsibility is commonly recognized, modern views have lead to the emerging issue of corporate responsibility. Business Directory.com defines corporate social responsibility as, “A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on the employed resources.” But such a concept has been much disputed since at least the 1970’s.
Hildebrand,D, Sen,S and Bhattacharya,C.B.(2011) European Journal of Marketing. Corporate social responsibility: a corporate marketing perspective. 45(9/10).1353-1364.
Each definitions of CSR does vary around the core characteristics based on their conceptual concentrations and particular focus, for example, under the Voluntary Characteristic, CSR see the overall voluntary activities beyond the law. The Externalities, study both, the positive ...
Corporate social responsibility is a corporation’s initiatives to take responsibility for the organization’s effects on environmental and social wellbeing. It may also be referred as corporate citizenship which may involve in incurring short term cost which don’t provide a sudden financial benefit to the organization but it can promote positive environmental and social change. Corporate social responsibility is also known as sustainable business practice and it is used to describe the work organizations do that has a positive impact on the society, the economy or the environment. Among academicians and practitioners of contemporary world there is an upsurge of interest towards social responsibility of the
Corporate Social Responsibility is an organisation’s obligation to serve the company’s own interest and the one’s of the society. Moreover, Corporate Social Responsibility has a definition of a concept where the companies integrate social and the environmental concerns into their own business operation and also on a basis of voluntary with their interactions they have with the stakeholders. Corporate Social Resp...
The company should embrace its social responsibility and not to be solely focused on maximizing the profit. The welfare of the firm’s employees, customers and the communities should be safeguarded. Companies have the ethical responsibility to provide a safe working environment for their entire employees and avoid polluting the environment and also to produce safe products. It is also increasingly being used as a measure of overall company’s performance. According to the International Organization for Standardization (ISO) this relationship to the society and environment in which they operate is a serious factor in their ability to continue to operate effectively.