Free Market Capitalism

Businesses, specifically larger corporations, play a major role in what occurs in society therefore, they are responsible to their stakeholders not only to pursue economic goals but the greater social good as well. Corporate social responsibility (CSR) means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. (Lawrence, 2010). Social responsibility is becoming the norm so much so that some businesses have incorporated it into their business model. There are three components of the bottom line of social

However, nowadays CSR is simply defined as ?operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society demands of business? (Gillis & Spring 2001: 23).

CSR is all about businesses understanding the effects that they have on the community/wider world. Businesses will use this impact in a positive way to

A free market is a type of market that the government is not involved in. Since the government does not care about what happens, the free market is also called “hands-off” or “let it be economics”. The government is limited to protect the citizens from the danger and that is the major goal for the government. In the free market economy, there are three components of the free market economy: competition, active but limited government, and the self-interest. Competition is one of the main components of the free market economy. Competition means that the companies compete with one another to make more benefits to themselves. According to the concept of the free market economy, the competition means a good thing because it is a basic

Corporate social responsibility (CSR) refers to business practices involving initiatives that benefit society (2). CSR may also be referred to as "corporate citizenship" and can involve incurring short-term cost that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change(1).

Capitalism, “is an economic system in which the means of production and distribution are owned by by private individuals or corporations” (“Capitalism”). Because capitalism is a framework of free markets, it allows individuals and businesses the opportunity to invest their capital, or money in whatever way they see fit in order to reap the highest possible profit. A free market economy is an economy in which the government set few restrictions on buyers and sellers in

The US has been leading the world economy with its model of free-market capitalism for last three decades. We have been told that, if left alone, markets will produce the most efficient and effective outcome. Because individuals know what the best way is and they are the ones who will be rewarded according to their productivity. Therefore, maximized freedom and minimized state intervention have been regarded as the most beautiful contribution to economic development.

Capitalism is a type of economic system used by many countries in the world. According to the Kimberly Amadeo, in her definition on capitalism, she said that “Capitalism is an economic system where private entities own the factors of production. The four factors are entrepreneurship, capital goods, natural resources, and labor. The owners of capital goods, natural resources, and entrepreneurship exercise control through companies.” This means that the governments do not own the business, but rather private owners of the companies.

The Free Enterprise system is a type of economy where products, prices, and services are determined by the market instead of being determined the government. Free enterprise refers to an economy where a businesses is free from the government’s control. There are five main principles of the Free Enterprise System. These five parts are, the freedom to choose our businesses, the right to private property, the profit motive, competition, and consumer sovereignty.

Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.

The United States is known to operate in a free market economy. In other words, the economy is based solely on supply and demand with little to no government control. In reality, however, the United States has various government regulations on our country’s market. The amount of regulation that is necessary is a continuing debate among politicians and economists to this day. Some would say that the key to a successful market economy is to remove government restrictions in order to force businesses to provide superior products and services at affordable prices. Yet, others assert that government regulations are essential in protecting consumers, stemming from the assumption that corporations are not always looking out for the public’s interest. Of course, there are various advantages and disadvantages associated with each level of regulation, however it is safe to assume that there must be a balance between an unregulated free market and a regulated economy in order to protect people and the environment and allow the economy to flourish.

Capitalism is often portrayed as the most preferred market system that generate economic success. In theory, free market capitalism has been the catalyst for better innovation, social mobility and standard of living by all means of economic freedom. However, free market economy has resulted an unprecedented rise in income inequality within societies. Middle class wage earners has been unsuccessful in keeping pace financially because of the policy changes caused by free market capitalism. A careful examination of the literature of this topic will show this to be the case.

Capitalism was considered a free market economy because instead of the state deciding the prices of their goods it was either done by private companies or by the open market. Because of that capitalism would always be considered a free market economy and this contributed with capitalism because if it wasn't considered a free market economy many people would have gone against this movement especially the churches which would have been very bad for Australia because they

Snider, Hill and Martin. (2003) stated that “ CSR may be defined in general terms as "the obligation of the firm to use its resources in ways to benefit society, through committed participation as a member of society, taking into account the society at large and improving welfare of society at large independent of direct gains of the company" (as cited in Kok et al., 2001, p. 288). Since the growth of the corporations depend on the societal factors, corporations should be responsible for the society for the corporation’s own benefit in the long run. “The Corporate Social Responsibility (CSR) construct describes the relationship between business and the larger society” (Snider et al., 2003). According to The Wall Street Journal (2013),

There are now several concepts of CSR and its definition, along with the meaning across corporations. In my opinion, and according with our textbook in page 11. CSR is about a particular set of business and strategies that deal with social issues. In addition, we can clearly perceive that CSRs application along corporations has increase in the past decade due to the several local, and international regulations in order to enforce business to act responsible.