Should Firms Encourage The Environment And Support The Community

Decent Essays
Should firms try to meet the expectations to enhance the the environment and support the community and still meet the financial interest of the shareholders or are they just to focus on the profits of a firm? Consumers and society believe that the firm hold a Corporate Social Responsibility to use their resources to benefit society. Then there are others that feel like the firms have already met their social responsible by providing the community with job and tax revenue that they did not have before. It is very easy to see both sides and argue either way. This debate begun in 1932 with opposing articles (Dodd 1932; Berle 1932) in a Harvard Law Review symposium on “For Whom Are Corporate Managers Trustees?’ (Reinhardt, F., Stavins, R., & Vietor, R, 2016). Those that argue for CSR often refer to the Triple Bottom Line, which is the notion that companies need to maintain and improve on the ecological and social performance in addition to the economic performance (Parnell, 2014). In other words, they feel that the firms should just not be about profit, that they should think about the society and surroundings. Firms must therefore consider the impacts of their actions on affected stakeholders. Those against CSR may argue that if you participate in CSR that are you stealing from shareholder’ monies. The argument against CSR is supported by well-known quote found in Milton Friedman’s 1970 New York Times Magazine article reads as follows: “[The responsibility of a
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