Describe the 2 views of Corporate Social Responsibility.

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One of the most controversial issues that has been widely debated over the last two decades is the corporate social responsibility of organizations. Opinions about business's social responsibilities lie mainly between two extremes. At the one extreme is the classical view that states business is an economic institution directed towards profit whose only responsibility to society is to provide goods and services and to return maximum benefits to shareholders (Robbins, Bergman, Stagg and Coulter, 2003: 136). The Nobel Prize winning economist Milton Friedman endorsed this classical view. Friedman said the primary responsibility of manager's is to operate the business to satisfy the interest of shareholders, and this interest of course is…show more content…
"Two leading tobacco policy experts have today accused transnational tobacco companies of corrupting the concept of corporate social responsibility (CSR) by seeking to use it as a means of directing attention away from the deadly effects of their products and dubious business practices" (Collin and Gilmore, 2002). Even though they are considered to be a company that is socially responsible, it is assumed that their products will cause ten million deaths by the year 2030. So, in the long run, the society will actually be worse off from the organizations business practices. Social responsibility is just used as a means to cover up the business practices that otherwise would not be accepted in the society. "BAT's Social Report is an attempt to regain legitimacy by a company that has become mired in allegations of smuggling, price fixing, collusion with the dictatorship in Burma an exploitation of farmers in Brazil and Uzbekistan" (Collin and Gilmore, 2002). So, the social responsibility issue is used more of a cover to protect bad business practice rather than to serve in the best interest of the society.

No organization is forced to pursue social interests. Milton Friedman argues that corporate officials have no social responsibility beyond serving the interests of their stockholders As Friedman said, "...there is one and only one social responsibility of business-to use its resources and engage in
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