The term CSR is also used for activities carried out by companies around the globe to give back to the society. The concept of CSR has been acknowledged by companies around the world and it is considered to an essential part of the operations of the companies. In the recent past, there have been several advancements in the corporate world which have necessitated the need for incorporating CSR in the core business model, specifically for large scale corporations with operations situated in multiple territories all around the world. Although CSR is largely unregulated, corporations have acknowledged that carrying out CSR activities reflects positively on their brand image.
Though philosophers have discussed abstract ethical dilemmas for most of recorded history, there appears to be no universal answer to resolve ethical problems. The varied works of philosophers have led to the development of ethical frameworks that may be applied to any particular situation.
The answer to an ethical question may differ depending on which moral framework is used. For this reason, taking complex and abstract ethical theories and applying them to the decision-making processes of company directors can lead to unresolvable arguments in boardrooms, restaurants, shareholders meetings, scholarly journals and, of course, the media.
Milton Friedman proposed a guiding principle for business ethics in a New York Times article, provocatively titled: This statement raises the question of whether directors can act in any way to increase profits.
Although Friedman is clear that directors as agents of the business have to play within the rules of the game, this still leaves room for unethical behaviour. Does this mean that directors can act in any way to increase profits? A further question raised by his article is whether corporations should engage in socially responsible activities.
It will be argued that directors Coporate social responsibilty essay act in any way to increase profits and that corporations should engage in socially responsible activities as it can be shown that they at least have an indirect positive effect on organisational performance.
Milton Friedman and Corporate Social Responsibility Friedman argued for a direct form of capitalism and against any activity that distorts economic freedom.
Friedman thus argues that corporations should focus on those activities that are causally related to company profit, effectively excluding charitable activities that do not directly generate revenue: Such giving by corporations is an inappropriate use of corporate funds in a free-enterprise society.
Another principle expressed by Milton Friedman is the need to stay within the rules of the game, explicitly avoiding deception and fraud.
This principle is further clarified when he writes: This quotation implies that Friedman does not proclaim that directors can act in any way to maximise profit as they have to abide by the law and follow ethical custom.
He, however, excludes explicitly charitable activities as they do not directly contribute to profit. Friedman argues that it is not appropriate for a corporate executive or director to embark on socially responsible programmes because there is little incentive for prudent expenditure, mainly when one is spending money owed to the shareholders through dividends.
Directors and executives of a corporation are employed to achieve this sole objective. The only moral responsibility of directors and executives is to meet shareholder expectations, which is to maximise their return on investment. Friedman interprets this principle as the corporation with the highest return to shareholders.
When the issue of an electric company that cut supply to a customer for non-payment upon which the customer died as a consequence was presented to Friedman, he applied the Kantian view to justify their actions.
He argued that a utility company that does not cut off electricity to non-paying customers would perish as there is no reason for customers to pay their bills.
He considers this as ethical because the directors have a moral duty to ensure the survival of the corporation. The socio-economic view is a utilitarian argument as Frederick Companies that operate exclusively for the sake of maximising shareholder return and thus do not engage in socially responsible activities are considered unethical in the utilitarian point of view.Corporate social responsibility (CSR) is known as a number of other names: corporate accountability, corporate responsibility, corporate ethics, sustainability, corporate citizenship, stewardship, triple bottom line and responsible business, to name just a few.
A further question raised by his article is whether corporations should engage in socially responsible activities. In this essay, Milton Friedman’s view is discussed and contrasted with the socio-economic view of Corporate Social Responsibility.
Essay Corporate Social Responsibility And Corporate Responsibility Corporate social responsibility is a fundamental factor and expectation of any business.
Business responsibility is most commonly known as Corporate Responsibility (CR) or the most common term Corporate social responsibility (CSR).
Corporate social responsibility is an essential element of present and future social policies.
|Milton Friedman and Corporate Social Responsibility||Get Full Essay Get access to this section to get all help you need with your essay and educational issues. The visible changes and effects of globalization and its impact on the transition from the industrial to the digital era.|
Corporate Social Responsibility In Sustainable Development Management Essay. Print Reference this If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please click on the. Corporate social responsibility (CSR) is known as a number of other names: corporate accountability, corporate responsibility, corporate ethics, sustainability, corporate citizenship, stewardship, triple bottom line and responsible business, to name just a few.
Oct 29, · Social Responsibility Essay Topics Social Responsibility - Words Corporate Responsibility Summary A Letter from Samuel J. Palmisano Chairman, President and Chief Executive Ofﬁcer Of course, many people pay lip service to the importance of long-term thinking.