Ethical and discretionary responsibilities of a business firm are listed in the order of priority. First, a firm has to satisfy its economic responsibilities, followed by fulfilling legal responsibilities in order to survive in the market. Only then, it can think about or focus on purely voluntary actions pertaining to ethical consideration. In this competitive market situation, a business unit has to concentrate on profit making, the primary motive behind any business activity. However; it is easier said than done. You cannot hit the bull's eye at the very first attempt. A firm has to become economically stable first; only then, it integrates social commitments in its agenda. Show Arguments for Social Responsibility: Public Image: Socially responsible firms gain more customers and employees feel proud to work for such organizations. Handling the Government Regulations with Ease: Government is a massive institution with long arms. It seeks to regulate business in public interest. Before government stretches its long arms, businesspersons should discharge their obligations to society. Business Is Resourceful: With a pool of resources, such as capital, labour and expertise, business is in a better position to tackle social problems and work for social goals.  Prevention is Better than Cure: Social problems have to be handled by the management at some point of time or the other. Problems with labour unions should be handled in a diplomatic way, so that they will not develop into serious social breakdown that consumes most of the management's time. As a Token of Gratitude: Business units benefit from society. Based on the commonly accepted principle, that one owes debts of gratitude towards those who benefits us, the corporations have debts that it owes to society. Arguments against Social Responsibility: Profit Maximization is the Ultimate Goal: Business units are accused of having profit maximization as their goal. Since business operates in a world of poverty and hunger, the economic efficiency of business is a matter of priority and should be the sole mission of business. Society has to Pay the Cost: The costs of social responsibility will be passed on to the society and the question is can the society bear these additional costs? Lack of social skills: Managers are here to solve economic problems and they do not possess knowledge or skills to provide the right solutions for social problems. Business has Enough Power: Business already is wielded with enough social power. The society should not take any steps, which will make it stronger. Social Overhead Costs: Costs on social responsibility is considered a social cost, which will not immediately benefit the business. Why spend money on an object, the benefits of which will be relished only in the future. Lack of Broad Support: The idea of business involvement in achieving social goals is not widely supported by many groups in society. Business and society are interlinked in many ways and the business has to handle the societal aspects with great care or else it may have to face the consequences arising out of such misappropriation or negligence. Source: http://EzineArticles.com/ Image Courtesy: tcctraining.org abeah.com Corporate social responsibility, also referred to as CSR, can be described as embracing responsibility for a company's actions and encouraging a positive impact through its activities on the environment, consumers, employees, communities, and other stakeholders. Corporate social responsibility (CSR)CSR refers to the practice of companies integrating ethical, social, environmental, and other global issues into their business operations and in their interaction with their stakeholders (employees, customers, shareholders, investors, local communities, government). While some evidence links CSR practices to business performance, most organizations point to the non-financial benefits of their efforts. Proponents of CSR argue that socially responsible practices can have a positive impact on the organization by improving employee recruitment and retention, managing environmental risks by reducing harmful accidents, and differentiating brand to achieve greater consumer loyalty. CSR proponents may also argue for the recognition of a "triple bottom line" performance that includes not only financial returns for owners but also social and environmental benefits for the greater society. Milton Friedman and other conservative critics have argued against CSR, stating that a corporation's purpose is to maximize returns to its shareholders (or shareholder value) and that it does not have responsibilities to society as a whole. Part of the critics' argument is that managers should not select social causes on behalf of a diverse set of owners. Rather, CSR opponents believe that corporations benefit society best by distributing profits to owners, who can then make charitable donations or take other socially responsible actions as they see fit. Other critics, rather than targeting the concept of CSR, point to examples of weak CSR programs. For example, the term greenwashing refers to instances where businesses have spent significantly more resources advertising being "green" (that is, operating with consideration for the environment) than investing in the environmentally sound practices themselves. Critics view these as misleading, even cynical, attempts to shape public perception about a company without its actually having to benefit the environment. What are the arguments made in Favour of social responsibilities?Arguments for Social Responsibility: Public Image: Socially responsible firms gain more customers and employees feel proud to work for such organizations. Handling the Government Regulations with Ease: Government is a massive institution with long arms. It seeks to regulate business in public interest.
What are the 4 main reasons to support corporate social responsibility?4 benefits of corporate social responsibility.. Increased employee satisfaction. The way a company treats its community says a lot about how a company treats its employees. ... . Improved public image. ... . Increased customer loyalty. ... . Increased creativity.. What is the moral argument for a corporation to be socially responsible?CSR's moral argument derives from intrinsic motives namely moral rules and personal values. In fact, based on the Kantian moral philosophy and according to the moral perspective, CSR should be considered as end in itself and not a means to achieve economic or personal goals.
What are the argument against social responsibility?Inefficiency in the System
Social responsibility brings inefficiency in the system. There is no substitute for the power of self-interest to get people to act. Any replacement of self-interest will, therefore, be fatal to the efficiency of the system.
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