Social obligation of business
Abstract
There were arguments that obligation of business is to maximize long term profit for shareholders in a sustainable way, while others call them to involve more to social responses. Each judgment has its own reasons which this research sought to analyze. Based on that, certain social obligations of business will be addressed with evidences, showing their necessary of being more responsible to social outcomes.
Key words: corporate social obligation, shareholders, corporate profit, social responsibility
Introduction
There has been a long debate on the role of business in society.
Some people agreed with argument of: “The social obligation of business is to sustainably maximize long-term profits for shareholders. Nothing more. Nothing less” .
However, others judge: “Business has a key role to play in combating issue like climate change, since the traditional response of many environmentalists and governments (namely, to encourage behavioral and attitudinal change amongst the general population) is not enough in itself to ultimately produce desired environmental outcomes” .
Different judgments have their own reasons based on appropriate grounds. My view is that business should ensure long term profit and stable operation while promote applying CSR practices into their daily operation for better performance.
Companies today are confronting intense pressures to address social concerns and it is undeniable that socially irresponsible businesses may lose their competitive advantage .
Corporate Social Responsibility (CSR)
Definition
Since 1920s, the concept of Corporate Social Responsibility (CSR) started to be discussed. However, due to the Great Depression economics and World War II, business leaders did not discuss about it seriously until the 1950s.
The definition of Corporate Social Responsibility (CSR) varies between businesses and possibly changes at certain time points, depending on their visions and goals.
There are so
There were arguments that obligation of business is to maximize long term profit for shareholders in a sustainable way, while others call them to involve more to social responses. Each judgment has its own reasons which this research sought to analyze. Based on that, certain social obligations of business will be addressed with evidences, showing their necessary of being more responsible to social outcomes.
Key words: corporate social obligation, shareholders, corporate profit, social responsibility
Introduction
There has been a long debate on the role of business in society.
Some people agreed with argument of: “The social obligation of business is to sustainably maximize long-term profits for shareholders. Nothing more. Nothing less” .
However, others judge: “Business has a key role to play in combating issue like climate change, since the traditional response of many environmentalists and governments (namely, to encourage behavioral and attitudinal change amongst the general population) is not enough in itself to ultimately produce desired environmental outcomes” .
Different judgments have their own reasons based on appropriate grounds. My view is that business should ensure long term profit and stable operation while promote applying CSR practices into their daily operation for better performance.
Companies today are confronting intense pressures to address social concerns and it is undeniable that socially irresponsible businesses may lose their competitive advantage .
Corporate Social Responsibility (CSR)
Definition
Since 1920s, the concept of Corporate Social Responsibility (CSR) started to be discussed. However, due to the Great Depression economics and World War II, business leaders did not discuss about it seriously until the 1950s.
The definition of Corporate Social Responsibility (CSR) varies between businesses and possibly changes at certain time points, depending on their visions and goals.
There are so