Corporate Social Responsibility Of A Corporation

1967 Words Oct 13th, 2015 8 Pages
Corporate Social Responsibility
A corporation ready to take responsibility for any impact of its decisions or actions of its stakeholders is one definition of corporate social responsibility. Incorporations corporate executives/ managers act in the interest of the people affected and involved within organizations known as stockholders. Many have argued thoughts on the topic of social responsibility, determining different groups to be served or to serve the corporation they exist, in this paper three articles will be examined. Milton Friedman will examine the stockholder model while R.Edward Freeman will concentrate on the stakeholder model and Joseph Heath on the market failures model. I will argue Joseph Heath’s market failures model truly emphasizes the correct theme of corporate social responsibility by explaining then disagreeing with Freidman and Freeman’s arguments.
Milton Friedman’s view on corporate social responsibility is well depicted in his article “The Social Responsibility of Business Is to Increase Profits.” In this article Friedman argues corporate executives are only employees of stakeholders where there only goal is to make profit for the stakeholders. Friedman expresses that corporate executives are merely only agents which who are to act on the behalf of the stakeholders who are their principals. As Freidman states, acting on behalf of the stakeholder’s means there “responsibility is to conduct the business in accordance with their desire,…
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