Fallacies of Corporate Social Responsibility

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FALLACIES OF CORPORATE SOCIAL RESPONSIBILITY
INTRODUCTION
In a contemporary world, a business-society relationship has evolved well beyond a simple business model to a much broader - socially responsible - corporate stewardship. As of this result, Corporate Social Responsibility (CSR) emerged as a concept that encourages companies to be ethical and responsible with the environment it operates in so as to wider impact on society. Though, CSR is now argued so widely as to have become a subject matter for serious arguments. Whereas business‘s human side stressed the importance of social responsibility, it also opened the room for criticism for its opponents, some of who have expressed legit business concerns; others endorse the belief that
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5) and “one could almost argue that Friedman is saying that those with the desire to work with a social conscience have no place in the free market”. Besides, a lack of CSR initiatives may affect profits like it happened with Nike in developing countries. The footwear company received a lot of negative comments due to someone’s decision to employ child labour. General public, reveled by Russell-Walling, is CSR’s best strength that Friedman may have neglected (as cited in Hampson-Jones, n.d. p. 2).

Peter Drucker, a well-known management expert, continues this theme by saying:

Economic performance is the first responsibility of a business. A business that does not show a profit at least equal to its cost of capital is socially irresponsible. It wastes society’s resources…But economic performance is not the sole responsibility of a business…Power must always be balanced by responsibility; otherwise it becomes tyranny (Drucker 1992, p.101 cited in Jones, n.d., p. 2).

CORPORATE SOCIAL RESPONSIBILITY IS A PR EXERCISE
There is, however, another key argument against CSR that is concerned with its ‘true intentions’ disguised by marketing and PR practices. For example, Peter Frankenta (2001), to name a few of his concerns, believes that CSR is an invention of PR because it lacks “commonly understood definition

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