Corporate Social Responsibility Of A Corporation

What Friedman implies is that shareholders should only be concerned with maximizing profits and not be obligated to be “socially responsible.” In that case, the manager would only have one priority, to maximize profits. However, what if that manager determined that social endeavors is the best option to maximize profits? This would make the corporation socially responsible while still maintaining maximum profits. The argument presented by Friedman in this case is that while the manager is performing as expected by maximizing profits, this type of “social responsibility is frequently a cloak for actions that are justified on other grounds rather than a reason for those actions.”

In today 's economic and social environment, issues related to social responsibility and sustainability are gaining more and more importance, especially in the business sector (Webfinance. 2014). Business goals are inseparable from the societies and environments within which they operate. Whilst short-term economic gain can be pursued (Catalyst Consortium. 2002), the failure to account for longer-term social and environmental impacts makes those business practices unsustainable. In our current society, the Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labor standards, the environment and anti-corruption (Corporate Watch. 1996 –

As a consumer, do you consider a corporation’s reputation before consuming their product? How often do you choose a product based on the corporation’s values and social responsibility? A corporation’s reputation is the overall estimation in which it is held by its internal and external stakeholders based on its past actions and probability of its future behavior (Harrison). The world economy is far more interconnected than it used to be and global corporations, especially, have more competition than ever before. Meanwhile, the internet and new technologies have democratized thought leadership and reputation, giving millions of consumers a voice in a corporation’s reputation and brand (Doorley, Garcia 2011). A company 's reputation and

Nowadays, many international companies take sustainable development seriously. They understand that sustainable development can enhance their quality of life and their reputation in public. Sustainable development is "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." (Brundtland, 1987) Sustainability requires monitoring and managing all the person to ensure that our economy and society can continue to exist without destroying the social and natural environment during development. The sustainability includes three pillars, which are economic, social and environment, forming a triple bottom line. The triple bottom line demands that a company 's responsibility lies

Corporate social responsibility incorporates environmental, social, and economic dimensions that provide leadership and differentiation opportunities for perceptive organizations. However,

Milton Friedman was an American economist, statistician and writer, who had a massive impact on the research agenda of the economics profession. His famous words “the only responsibility of business is to increase its profits” (Friedman, Milton. 1970) led to many controversial debates on whether businesses should have ethics or if profit should be their main goal. Corporate social responsibility has many definitions, as its interpretation is quite loose, so I have chosen one that relates the most to this essay, given by the World Business Council for Sustainable Development, in 2000: “Corporate social

Milton Friedman, a well-known and often-cited Nobel Prize winning economist, asserted that the sole “social responsibility of business is to increase profits (as cited in Chandler & Werther Jr., 2014, p 5). Friedman believed that financial success and profit maximization are the only justification needed for the existence of a business; the resultant positive economic contribution is the value provided to society and, thus, its only social responsibility. He believed that the notion that companies are socially responsible, or obligated, to fulfill any other role is a deterrent to the true purpose of business in a free

Some critics argue that corporations are fundamental entities responsible for generating a product and service to gain profits to satisfy shareholders. Milton Friedman and others argue that there is no place for social responsibility as a business function. These critics point to the rule of corporate law that prohibits a corporation’s directors from any activity that would reduce profits.

Friedman’s argument that a companies only social responsibility is to make money is extremely flawed and immoral. Most people would agree that the main goal of a company is to turn a profit, and to be sustainable, this Friedman is correct in saying. Where he starts to be mislead is when he does not think that there are any social obligations of a company. Friedman says that businesses must “increase its profits so long as it stays within the rules of the game” (Milton Friedman 65). What are the rules of the game, many would say it is the law, correct? Would child labour be considered within the rules of the game for a North American based company? Most people would agree that child and slave labour is wrong and against the law for these companies. What if child and slave labour was used in a different country? If a company had product made in a foreign country and imported back to North America, this would be okay because it is legal in the manufacturing countries? This is something that Friedman overlooked when coming up with his argument, saying that you must stay within the rules. This situation would be considered in the rules but is it morally and ethically correct? They are maximizing profit, but are supporting slave labour and also moving North American jobs into other countries. An executive must have the power to intervene in this situation

Social obligation is a thought that has been of worry to humankind for a long time. In the course of the most recent two decades, be that as it may, it has happened to expanding worry to the business world. This has brought about developing communication between governments, organizations and society all in all. Previously, organizations basically fretted about the financial consequences of their choices. "Today, notwithstanding, organizations should likewise think about the legitimate, moral, good and social results of their choices" (Anderson 15). This paper will talk about the idea of corporate social obligation. It will examine the significance of partnerships setting up corporate social obligation ventures, and the effect these have on society.

On September 13, 1970, Milton Friedman wrote and article, Social Responsibility of Business is to Increase its Profits. One of Milton’s theories suggested that the only legitimate incentive for a corporation to exist is to maximize its profits with its shareholders. As companies progress over time, so does the reason for the company existence. “What makes a stake holder?” Isabel Hilton (GE Stakeholders 2009)

As the interest in corporate social responsibility has had the ability to keep increasing and developing and the force that is gain by movement, scholars and practitioners have put effort to follow the progress, development and information of companies’ performance to accomplish their corporate social responsibilities, characteristically to use a particular name corporate social performance (CSP) to describe it. Such corporate social performance shows people and stakeholders things that important about firms’ products, services and the processes of producing the products. It now is accepted by a great many people and in many markets, especially spread all over particular areas such as “environmental impact, social impact, employee relations, and corporate governance” (Kristoffersen, Gerrans and Clark-murphy 2008, 46). Phillip Morris International is an American multinational cigarette and tobacco enterprise, and it is a world’s most important and most successful international tobacco enterprise. It has six international brands within world’s top 15, and its products are available in more than 180 countries (Pim.com). The Philip Morris international company operates not only making cigarettes but also about the style of doing industry and commerce, and the way of having effects on the exterior of its offices, both domestically and internationally. The Philip Morris International aims to maintain both high domestic and international standards of being a socially responsible

There are a number of definitions of “idealism” and “realism”. Idealism is referred to behaviour or consideration based on an idea of things as they would be, or as we would like them to be, with an inclination to be unreal or imaginative. Realism on the other hand is referred to behaviour or consideration based on a formation of things as they actually are, in spite of how we want them to be, with an inclination to be practical and realistic. Corporate social responsibility has been defined in many ways; one way to define CSR is that CSR takes into consideration how companies manage their business processes to generate on the whole a positive impact on society. Stakeholders are people who are affected by a business.

Supply Chain Responsibility is or at least should be part of a company’s Corporate Social Responsibility (CSR) strategy. CSR is a strategy that managers use to monitor, maintain, and often times improve the environmental and social impacts of their companies as well as how they interact with all of their stakeholders not just the shareholders for which their operations effect. Managers should use their CSR plains to balance the expectations of their often competing stakeholders with their environmental, social, and economic goals. Some fundamental CSR concerns are stakeholder engagement, environmental impact, responsible sourcing of raw materials, standards and working condition of the labor force, social and gender equity as well as good governance and anti-corruption control. CSR approaches focus on what is called a Triple Bottom Line for measurable results. The three measures are profit which is the economic value that a company creates, social which is the how the company treats its labor force and the communities for which it operates in and environmental which is how the company is engaged in the creation and application of sustainable practices that produce reductions or eliminates environmental impacts.

Corporate social responsibility of the company manifests itself not only to customers but also employees and environment. In the brand’s core there are based principles of respect and understanding for the normal functioning of all processes starting from the development and production to marketing and sales of finished products. The LVMH values in people their interests, needs and values (Social Responsibility, n.d.). This policy is ideally focused on developing new ways of production and using raw materials and resources in innovations according to environment changes. That is why, one of the most important parts in production of product plays The LVMH Environmental Department. The main objectives of the Department are aimed at designing of products by using new innovations and controlling environmental risks (Environment, n.d.).