Pros Of Corporate Social Responsibility

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Corporate social responsibility involves business practices with initiatives that benefit society. The company has an economic and legal responsibilities, which are required, ethical responsibility, which is expected, and a philanthropic responsibility, which is desired. The arguments for it are that corporations increase long-term profits by operating with a CSR perspective. Also, pro action is sometimes better than reaction. This means that if businesses proactively participate in CSR and have it as a part of their core values, there would be less negative reaction from the public, and therefore better reputation and goodwill. The public supports CSR greatly. There are principles that are beyond the maximization of profits for shareholders.…show more content…
The economic model states that the only goal of businesses is to maximize profits for the shareholders. The business is not equipped to work with social activities, and they limit its ability to be competitive in a global marketplace. The argument against CSR is that it questions the profit maximization for businesses. Critics argue that CSR distracts businesses from their economic role. Milton Friedman argued that markets should work on their own, and CSR makes markets not sufficient enough and as a result good competition suffers. One of the examples is Walmart and their low prices strategies. The company is aggressive with its suppliers, competitors, and even local municipalities when negotiating tax and financial incentives. These strategies help company maintain their low prices, and therefore satisfy customers. The company has been committed to obeying the law in all of its strategies, and they have been maximizing the shareholders profits within the law. According to Friedman, this company would be socially responsible corporation. Its corporate strategy has achieved several ethical objectives. Society benefits when the company offers a range of products with low prices, the company outsources its services to the most efficient supplier, and attracts more investors. Overall, society benefits from the company’s profit
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