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Ethical Dilemma

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Corporate Social Responsibility
Anisha Panjwani
Western International University
Ethical Leadership Corp Social LDR-620-2126
McDaniel, Jon
June 23, 2011

Corporate social responsibility is becoming an increasingly important activity to business nationally and internationally. But “What is corporate social responsibility?” Corporate social responsibility is about how companies manage the business processes to produce an overall positive impact on society. According to Lord Holme and Richard Watts “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large" (“Corporate social responsibility,”n.d).
There two opposite views of corporate social responsibility are the classical view and the socioeconomic view.
Classical View
According to Milton Friedman, an American economist “The social responsibility of business is to increase its profits”. He believes that manager’s foremost objective is to make as much money as possible while following the basic legal and ethical rules of the society (Friedman, 1970).The managers has the ethical responsibility towards its shareholders as the money company is using is of shareholders and so to think of their benefit is the prime responsibility of a company. Only people can have social responsibility. A corporation is an artificial person and so it only has artificial responsibility of paying tax. A corporate executive is an employee of the owner of the business and it has direct responsibility towards his employer and that duty is to fulfill their desire which is to make as much money as possible (Friedman, 1970).
The corporate executive as a person can donate his own money to charities or he may also devote his time for

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