VIEWS AGAINST THE NEOCLASSICAL ECONOMICAL SHAREHOLDER APPROACH
Corporate Social Responsibility (CSR), defined as “the broad array of strategies and operating practices that a company develops in its effects to deal with and create relationships with it numerous stakeholders and the natural environment” (Waddock, 2004). Globalization and liberalization has reinforced with the introduction of corporate social responsibility, Developing countries need to focus more about the corporate social responsibility planning and implementation process (Kiran and Sharma, 2011). Corporate social responsibility is one of the most important issues and developments of 21st century as the organization in 21st century faces problems for which corporate social responsibility is an answer (Horrigan, 2010). Davies (1973) says social responsibility starts when the law ends. Any organization is not socially responsible if it simply complies with the minimum requirement of law, as this is what any good citizen would do.
Milton Friedman argues that people responsible for decision and action in business should not exercise social responsibility in their capacity as company executives. Instead, they should concentrate on increasing the profits of their companies (Mulligan, 1986). Friedman (1970) the one and only social responsibility of business is to use its resources and involve in activities focused to increase its profit as long as it stays with in the rules of the game, which is to say engages in open and free competition without deception or fraud.
This essay focuses on the views against the neoclassical economical stakeholders approach which states profit is the sole social responsibility of any business in comparison with Kellogg’s corporate social responsibility and also discussing the views and theories supporting corporate social responsibility.
CORPORATE SOCIAL RESPONSIBILITY