Should Business Companies Should Not Engage In Corporate Social Responsibility?

Intro Social responsibility is defined as the affiliation between a cooperation, specifically a commercial business, and the society it interacts with. According to ISO 2600, social responsibility concerns with contributing to the sustainable progression, along with the health and welfare of society. However, Corporate Social Responsibility (CSR) is an obligation of all business body to safeguard the interest In a corporate perspective, maximising profits and acquiring market share remains as one of the central objectives of any regular business corporation. However, as per Jim Owens, CEO of Caterpillar, the utmost successful firms in the coming decade would be those that assimilate sustainability into their core fundamental businesses. Hence,
Among the largest opinions against engaging in corporate social responsibility as a dogma would be the significant costs. The initiatives to lower down environmental effect such as global warming normally involve costly equipment changes or constant costs without any efficient method to reclaim those losses. For example, Qantas had been hit by the largest loss in its history when it reported around 3-billion-dollar loss for the 2013 financial year mostly due to high labour cost and expenses on social campaigns. Moreover, the chief executive of Qantas also announced a taskforce transformation proposal which would involve the retrenchment of around 5 thousand full-time employees in 2016/17. Furthermore, there is not a single distinctive proof that engaging in corporate social responsibility (CSR) would cause growth in sales or profit. Thirdly, companies might be unwilling to involve in socially responsible behaviour because corporate social responsibility projects and initiatives calls for a change in the policies of the company, and some CSR processes can result in the business becoming more burdensome to
(Friedman, 1970) argues that the usage of resources and involvement in activities aimed to raise profit is the sole social responsibility of a corporation. Additionally, participating in free competition without dishonesty or fraudulence is the main fundamental to the business. The study against CSR also includes wealth maximization being the dominant function of businesses, as opposed to focusing on CSR initiatives (Ludescher, 2009). Ludescher continues by arguing that engagement in CSR is an obligation by managers only when it is a strategic initiative. Consequently, CSR will not play a dependable role in assisting developing nations during economic downturns. Proponents against CSR have also claimed that corporations should maintain primary focus on profit maximization and leave environmental and social issues to non-profit organizations (like World Wildlife Federation) and the government (Lamb, Hair and McDaniel,