...Social Responsibility of Business Introduction What is the social responsibility of a business? Is it to increase its profits as Milton Friedman affirms? Before starting any debate about this topic, first let’s see what its definition is. According to the Business Dictionary, social responsibility is an “obligation of an organization's management towards the welfare and interests of the society which provides it the environment and resources to survive and flourish, and which is affected by the organizations actions and policies. 1 ” Furthermore, according to the Dictionary of Finance and Investment Terms, social responsibility is the “principle that businesses should actively contribute to the welfare of society and not only maximize profits. 2 ”These two definitions are in total opposition to Friedman’s statement. Never the less, I do think that any corporation can be social responsible in terms of these opposing points of view at the same time. In this essay, I will first present a summary of the article of Milton Friedman; then I will express my personal reflection on the topic and tell why a corporation can comply with both positions simultaneously Milton Friedman in his article “The Social Responsibility of Business is to Increase its Profits” states that only people can have responsibilities, and that there is not such a thing like social responsibility of business. A corporation, according to Friedman, is an artificial person and, therefore, may have artificial...
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...Seminar Paper Social Responsibility of Business Social Responsibility of Business Name= Bisweswar Chakraborty BBA, 4th Semester, 2nd year * Introduction :- * Social Responsibility :- Social responsibility is an ethical theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. In our daily life, you perform a number of activities. For example, brushing our teeth, showing respect to elders obeying traffic rules on road etc. Now why do we perform all these activities? It is because we live in a family as well as in a society and the members of our family as well as the society want to do all of them. They do several things for us and expect something from us, which you must do. The expectations of the family or society become our obligations, which you need to fulfill. For example, keeping the road clean by not throwing garbage on it, etc. There are also obligations towards our self, which you need to fulfill. For example, taking food timely, going to sleep early at night, etc. that keep you fit and takes care of your health. Now we fulfill all these obligations by performing certain activities which are called our responsibilities. Any responsibility we have, particularly towards members of the society with whom we interact or towards the...
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... Arts ,Science & Commerce College ,Chopda Social Responsibilities of Management * INTRODUCTION Business enterprises are creatures of society and should respond to the demands of society. If the management does not react to changes in social demands, the society will either force them to do so through laws or will not permit the enterprise to survive. Therefore the long-term interests of business are best served when management assume social responsibilities. The image of business organization liked with the quality of its products and customer service and the extent to which it fulfills the expectations of owners, employees, consumers, government and the community at large. For long-term success it matters a great deal if the firm has a favorable image in the public mind. Every business enterprise is a organ of society and its activities have impact on the social scene. Therefore, it is important for management to consider whether their policies and actions are likely to promote the public good, advances the basic values of society, and constitute to its stability, strength and harmony. Increasing concern for the social responsibility of management, it is now recognized that besides taking care of the financial interest of owners, managers of business firms must also take into account the interest of various other groups such as employees, consumers...
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...Critical Analysis: "The Social Responsibility of Busine Critical Analysis of "The Social Responsibility of Business" from Milton Friedman In this essay I evaluate Milton Friedman’s essay: “The Social Responsibility of Business Is to Increase Its Profits” in 1970, on the Social Responsibility of a business and his theory, which is called the “Efficiency Perspective”. In every article and book that I have read about social responsibility, Friedman’s “Efficiency Perspective is placed centrally. During my research I found that Friedman is often criticised for being too classical. Friedman believes that manager’s foremost objective or even moral obligation to the firm should be to maximise profits always. There is however one condition that makes his perspective more complicated, not only for me, but also for several well-known authors. According to Friedman, the managers obligations should be carried out: “…while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom”. This leads to one of the main questions of my essay: To what extent does Friedman’s “Efficiency Perspective” give foundation for responsible and moral international management behaviour? And need we any concern if it fails to do so? To fully answer the questions, I first need to explain the two different parts of the first question: responsible international management behaviour and moral international management behaviour. In businesses nowadays they...
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...Social Responsibility of Businesses 22 September 2013 Social Responsibility of Businesses Social responsibility of businesses is the obligation of businesses to help improve the economy, the quality of life of its employees, and the surrounding communities. It is “an organization’s initiatives to assess and take responsibility for its effects on the environment as well as its impact on social welfare.” (Grantham, 2013) A company that continually gets involve with social events and support the communities often gains the trust of consumers. An organization’s reputation can be boosted by demonstrating good social responsibility and good will toward the community. This paper will discuss how being socially responsible can help businesses retain employees, attract customer, and cut business cost. Social responsible companies often increase employee loyalty and job performance. “Employees are the heart and soul of your organization. They produce the products and services that your organization offers. If you take good care of them, employee turnover will be lower, productivity will be higher, and fraud/theft will decline.” (Ventureneer, 2013) Companies that appreciate and value their employees by providing them competitive wages, benefits, and awards then they are a social responsible organization. When companies invest into their staff with quality training, and growth opportunities then employees are more likely to stay with the company. As other people...
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...The Social Responsibility of Business: A Review. Maz Demosthenous School of Commerce The Flinders University of South Australia GPO Box 2100 Adelaide South Australia 5001 Telephone: +61 8 82013896 Facsimile: +61 8 82012644 Email: Maz.Demosthenous@flinders.edu.au SCHOOL OF COMMERCE RESEARCH PAPER SERIES: 00-8 ISSN: 1441-3906 For many, the view that the main goal or purpose of business is to make as much money as possible is accepted as a matter of fact and is beyond debate. To go further and say that the social responsibility of a business is also just to make a profit is open to debate. The aim of this paper is to discuss the various views of the responsibility of business, and to consider where accounting fits in. In addition, to explore the ethical responsibilities that a corporation may have beyond making profits for its stockholders. The Friedman view Milton Friedman’s view is that in a capitalist economy, there is one and only one responsibility of business- to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud (Friedman, 1983). When one is looking at the responsibilities of an individual or an organisation they must first examine their roles. The directors of companies have a fiduciary responsibility to act in the best interest of the shareholders. The managers are agents of the shareholders...
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...Forum 1 Unethical and Unlawful Behavior Unethical behavior is business conduct that employers encourage employees to refrain from in order to promote honest business dealings in the workplace. Unethical behavior however, does not always mean a violation of the law. Unlike unlawful behavior which is the violation of a constitutional law that is punishable by the legal system, unethical behavior is associated more with a set of values or a “source of guidance beyond enforceable laws” (Salvatore, 2015 p. 20). Corporate Social Responsibility Consumers find it difficult to trust corporate America after the exposure of countless fraudulent business transactions over the last two decades. The expectation for corporations to be ethical, forthright, and socially responsible seems to be an unrealistic expectation. The suggestion that making a profit should be the only social responsibility for business owners a lack of concern for the society and individuals from which those profits are made. It is because of statements like this one made by Milton Friedman that the concept of corporate social responsibility evolved. The “term is a generous one that encompasses various overlapping areas, such as corporate citizenship, stakeholder theory, business ethics, and corporate sustainability” (Popa & Salanta, 2014 p.138). I agree that corporations should make a profit; however that should not be their only responsibility. When one becomes consumed with self, judgment becomes cloudy. Scripture...
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...The Social And Academic Implications Of Drug Abuse Among Undergraduates: A Case Study Of The Obafemi Awolowo University, Ile-Ife. Nigeria. Citation: Kobiowu, S.V. (2006) The Social And Academic Implications Of Drug Abuse Amonst Undergraduates: A Case Study of the Obafemi Awolowo University, Ile-Ife, Nigeria International Journal of Psychosocial Rehabilitation. 11 (1), 61-68 [pic] Abstract The researcher investigated the incidence of drug misuse among university undergraduates, with particular reference to Obafemi Awolowo University, Nigeria. The study revealed that the academic pursuit of those undergraduates who engage in drug misuse is not unduly jeopardized, and that the abusers do not socialize extraordinarily, contrary to seemingly popular expectation. [pic] Introduction The term ‘drug’ in the main, would relate to “any substance that, when taken into a living organism, may modify one or more of its functions”, while abuse’ implies “a particular application of a drug more destructive than constructive for society, or the individual”. One may be hooked emotionally and psychologically, and may have a physical dependence, where one has a drug addiction problem, whether to a legal or illegal drug, there is a craving for it. The individual wants to use the drug again and again, and if it is stopped, there are usually unpleasant physical reactions. While it is not everyone...
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...Corporate Social Responsibility for Business The purpose of this recommendation report is to help enterpriser to recognize the importance of corporate social responsibility for the business. There is more intense scrutiny from public toward business since the past thirty years because business caused many problems that are criticized much by public and society such as unacceptable ethical behaviors, deteriorating environment cased by business activities and so on. As a result, a concern of Corporate Social Responsibility (CSR) had generated during that time. Many people believe CSR is good for business based on the socioeconomic view of social responsibility (Robbins, Bergman, Stagg & Coulter, 2005). This report is in favour of the view that the CSR is good for business by considering the economic, legal, ethic and philanthropic advantages of CSR in business. From the impacts of CSR to business’ economic positions, there are three advantages for business, which are secure long-run profits for companies, improvement of shareholder’s interests in the long run, superiority of avoidance of negative social or environmental impact and Improvement of public image and supports from public expectations respectively. • Secure long-run profits for companies CSR can help companies maintain long-range self-interest. That is to say, many of social problems caused from business activities seriously deteriorate the social condition that may become unhealthy climate for business’ performance...
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...Business Ethics and Social Responsibility Apparently, the concept of social responsibility refers to the means of achieving full sustainability through the adoption of the Triple-Bottom-Line (TBL) concept. Any viable organisation will enhance and facilitate long-term viability and success through the critical adoption of fundamental social responsibility principles such as transparency and accountability (Benn & Bolton, 2011). For instance, in the year 2010, the international organisation for standardisation gave out an international standard, which could help other organisations in addressing and accessing their social responsibility. Further, it is through critical and careful attention to impacts on the environment and the entire society that various organisations are able to achieve their sustainability. Through such scenario frequencies, any organisation can spur growth and development within the shortest time possible. Embracing the culture of transparency and positive ethics enhances and facilitates an approach that helps in the protection of the long-term success of both the environment and organisational success (Benn & Bolton, 2011). Social responsibility Social responsibility on a personal or corporate level means having a passionate commitment to act in an ethical and sensitive manner to alleviate poverty from society without destroying the cultural values and environmental settings of the community, and ensuring economic benefits to the organisation that...
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...9/6/2013 The Idea of Ethics and Social Responsibility in Business For the purpose of this essay I’ve elected to discuss the responsibility of the employee in the work place, and their place in the corporate system. All four chapters we’ve read in the text so far have been filled to the brim with the three author’s ideas of what makes a business and its workforce ethically responsible, but the particular section in the first chapter regarding employee ethics caught my attention. When a business begins to grow, if it turns a profit and remains successful, it will most likely need to take on employees so that it can cope with the growth its products demand (Nickels, et al). Everyone hired has a specific job that is necessary in order for the business to run like a well-oiled machine. The authors of our elected text bring up the fact that the number of employees calling in sick to work has reached the highest percentage it has been at in the last five years, and the majority of these employees were not truly ill to begin with. Also a much larger percentage of people are conducting personal business at work, and this causes a large drop in employee productivity (Nickels et al 14). This in turn causes problems for the business as a whole. However, on page fifteen of our text the authors state that your basic American employee is, on average, one of the world’s most productive workers. This contradiction is confusing to me, but I also believe I know where it may come from...
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...Business Ethics and Social Responsibility Sexual orientation discrimination includes being treated differently or harassed because of your real or apparent sexual orientation -- whether gay, lesbian, bisexual, or heterosexual. This type of discrimination may be illegal in your workplace, depending on where you work. This is not a personal problem that should be handled among themselves. As an Equal Employment Opportunity company, the company should ensure that guidelines are given and followed to prevent this type of sexual harassment and discrimination. If the company permits the posting of these types of pictures then the problem will never be solved. Robinson should not have to argue with her peers because she feels she has been harassed. Instead, the company is expected to maintain an atmosphere comfortable and fair to all of its employees. Companies have a legal obligation to protect their employees from sexual harassment. As a duty of care, a company should implement a sexual harassment policy that is taken seriously, acknowledged by all workers, supervisors, and, managers of the company and those actions will be carried out if manifested and not tolerated. In JSI’s case, they did not communicate the policy effectively to the supervisors of the shipyard (sexual harassment). In addition, they did not follow through on the procedures for reporting violations. The behavior of Lois Robinson’s co-workers is not acceptable. The behavior is not acceptable...
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...Rethinking the Social Responsibility of Business From Reason (October 2005) Making Philanthropy Out of Obscenity -Milton Friedman By pursuing his own interest [an individual] frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good. -Adam Smith, The Wealth of Nations The differences between John Mackey and me regarding the social responsibility of business are for the most part rhetorical. Strip off the camouflage, and it turns out we are in essential agreement. Moreover, his company, Whole Foods Market, behaves in accordance with the principles I spelled out in my 1970 New York Times Magazine article. With respect to his company, it could hardly be otherwise. It has done well in a highly competitive industry. Had it devoted any significant fraction of its resources to exercising a social responsibility unrelated to the bottom line, it would be out of business by now or would have been taken over. Here is how Mackey himself describes his firm's activities: 1. "The most successful businesses put the customer first, instead of the investors" (which clearly means that this is the way to put the investors first). 2. "There can be little doubt that a certain amount of corporate philanthropy is simply good business and works for the long-term benefit of the investors." Compare this to what I wrote in 1970: "Of course, in practice the doctrine of social responsibility...
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...|BUSINESS ETHICAL BEHAVIOR & CORPORATE SOCIAL RESPONSIBILITY | | | |Student’s Name:Renee Giordani | | | |Course Title:Sales Management | | | |Professor:Gene Dichiara | | | |SUNY EMPIRE STATE COLLEGE | | | |Date: December 09, 2014 | Business Ethical Behavior & Corporate Social Responsibility: Why Organizations Must Have IT Corporate Social Responsibility has gradually developed into one of the greatest ethical aspects that have to be adhered...
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...The Social Responsibility of Business is to Increase Profit What is the social responsibility of a business? Is it to increase profits as American economist Milton Friedman argues? Is it to make decisions that benefit and protect society? According to the Dictionary of Finance and Investment Terms, social responsibility is the “principle that businesses should actively contribute to the welfare of society and not only maximise profits”. In my view the statement ‘the social responsibility of business is to increase profit’ is true to an extent, however, I believe a corporation’s responsibilities extend beyond just maximising profits. The ‘Narrow View’ argues that profit maximisation is the only objective for a business. Theodore Levitt wrote, “in the end business has only two responsibilities- to obey the elementary canons of face-to-face civility (honesty, good faith and so on) and to seek material gain” Levitt’s opinion could be perceived as realistic to an extent, however, I believe he doesn’t take into account the negative side-effects that business activities can have on society. Friedman strongly rejects any concept of corporate social responsibility that would deter a business’s primary goal of profit maximisation. Furthermore, he argues that only people can have responsibilities, not an artificial being such as a corporation. If an artificial being such as a business was to have responsibilities, however, than I would find it appropriate that it would be inclined to...
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