From a business perspective, researchers often argue that Corporate Social Responsibility (CSR) can improve the competitiveness of a company and that the CSR activities develop a favourable corporate image and their financial performance (Burke & Logsdon 1996). CSR is defined as the obligation of organisation management to make decisions and take actions that will enhance the welfare and interests of society as well as the organisation (Samson & Daft 2009). Some say that the significance of social responsibility has been changed up until today in that CSR activity may not achieve the intended effects and therefore believes that only one social responsibility exists; to use its resources and engage in activities designed to increase its profits (Forehand & Grier, 2003). This essay will first discuss corporations who believe there is only one social responsibility portrayed through returns to shareholders to firms. Secondly, it will investigate the absence of soul and ethics to corporations that follow Friedman’s perspective. Thirdly, this essay will discuss corporations that comprise of legal responsibilities within the society, ethical responsibilities with respect to the natural environment and discretionary responsibilities. Furthermore, the four primary responsibilities are very significant because it is used to evaluate the overall social performance of a corporation and is designed to help reach decision making by managers within corporations.
Times have changed since Milton Friedman stated that the only social responsibility for corporate executives was to maximise income and wealth of their company’s stockholders (Green, 2007). The idea obtained from Friedman’s stance was that only economic responsibility existed; to use its resources and create profit maximisation that will satisfy the managerial efficiency interests of stockholders (Samson & Daft 2009). It is understood that the primary goal of a business in this situation is to increase their wealth in order to return the money to their investors and shareholders. This raises the viewpoint of corporations’ major concern and goal; to maximise their profits so shares can be returned. We recognise that some businesses do not consider other relative responsibilities due to their larger concern in that their operation depends mostly upon the financial wealth and its ability to return shares to stockholders. For car industries, their market advertising includes high power and ‘vroom-vroom’ factor in the cars, showing them fast speed ability, when speeding to the extent shown in these advertisements is both illegal and unsafe (Samson & Daft 2009). These car industries consider into account the dangerous factors into their own advertising to attract consumers’ attention by highlighting people’s interests into their advertisements despite the primary principle of the ideas being illegal and unsafe. Furthermore, it is recognised that corporations believe that economic responsibility is the only social responsibility and that the only significant idea is the enhancement of wealth and profit.
The type of product that a company supports may increase the salience of the type of responsibilities that are beneficial and causes relating to the company’s business should increase the importance of firm-serving benefits (Forehand & Grier, 2003). As an example, it has been stated that “tobacco epidemic” killed 100 million people worldwide in the 20th century and could kill one billion in the 21st century (WHO, 2008). This illustrates the high level of danger tobacco products carry that cause serious dangers to the human ethics. The industry continues its business up until today as tobacco is a common necessity to many smokers in our world. Therefore, tobacco companies feel no requirement to take ethical responsibilities because their industry is based on selling goods that are virtually against human health. This implies that there is no alternative to develop the product to...
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