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The Pros And Cons Of Corporate Social Responsibility

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In this global dispensation, corporate social responsibility has been a topical issue for companies in making an economic decision for the organization. Especially in the developing economies, there is no day that passes by without hearing the society or the media reporting of environmental pollution and unethical misconduct or corporate misbehaviour. This is because of the companies operating in the oil industry, chemical industry, tobacco industry and mining industry, for example, they directly or indirectly cause harm to the environment and endanger the lives of the inhabitant. These continual practices of corporations have led to institutional reforms and strong government regulations which to some extent poses disadvantages to corporations.…show more content…
It has been debated for businesses, whether to invest in CSR activities. Researchers who are in favour of CSR argue for the benefits of involving in corporate social activities compared to just setting policies that will maximize only the value of the firm or its profits. Tobias, (2011) argued that companies that are involved in CSR are more profitable than their peers who are not socially responsible to their stakeholders. The critics argue that CSR is an activity that takes away the attention of managers from the objective of the organization. Managers are stewards of organization and their task is to invest the assets received from creditors and stockholders to increase profits and dividends. However, when they turn their attention to activities that are in the sole responsibility of the government, it will distract operational activities. Friedman (1970) argued in his article “The social responsibility of business is to increase its profit", artificial legal body is what companies are referred to by law. As an artificial person if they have any responsibilities to the society then it should be artificial social responsibility” this implies that corporations’ responsibility is not to the society but it is the work of the
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