Fallacies of Corporate Social Responsibility Essay example

Fallacies of Corporate Social Responsibility Essay example

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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 social responsibility is an integral part of a business. The purpose of this paper is to present a summary of fallacies of CSR and its advocacy.
BUSINESS IS ALL ABOUT PROFIT MAXIMIZATION
Among the first and most famous proponents against corporate social responsibility might be Milton Friedman. In his article, dated thirty years ago and published in the New York Times, he argues that the primary objective of a business enterprise is to maximize shareholders’ wealth. It is the responsibility of a manager to pursue profit maximization activities within its area of specialization in order to sustain business’ long-term healthy growth (Milton, 1970). Moreover, Friedman condemned supporters of CSR for “preaching pure and unadulterated socialism…[because they] are notable for their analytical looseness and lack of rigor“ (as cited in Sparks, 2003). Many modern economists and scholars adhere to this view. Take, for example, Robert Reich (2010), a professor of Public Policy at the University of California...


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...sponsibility is just a PR tool for businesses, says report. Retrieved from
http://www.theguardian.com

Reich, R. The Final Lesson of BP. Personal Website. Retrieved December 18, 2013, from http://robertreich.org
Rochte, M. (n.d.) PR vs CSR. Retrieved December 18, 2013, from http://www.opportunitysustainability.com

Scheer, R. & Moss, D. (2013, April 2013). What is ‘greenwashing’? Retrevied from http://business-ethics.com

Smith, N., C. (n.d.) Arguments for and against Corporate Social Responsibility. Retrieved from http://techsci.msun.edu

Sparks, R. (2003, May 19). A Pragmatic Approach to Corporate Social Responsibility - Address Given to The School of
Management, the London School of Economics. Retrieved from cep.lse.ac.uk

Yunus, M. (2008). Creating a World Without Poverty: Social Business and The Future of Capitalism. Retrieved from
http://www.globalurban.org

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