1. Explain the connection between the economic model of corporate social responsibility and “free market” or “neoclassical” economic theory. - The free market economic theory provides the rationale for the managerial responsibility to make as much money for their stockholders as possible. The justification of the free market is based on the utilitarian ethical principle that one should act so as to maximize the overall good. Therefore, the overall good in terms of the economic model is that of the stockholders. 2. What are the two ethical justifications for the economic model of corporate social responsibility? What are the most significant challenges facing these justifications? - The two ethical justifications for the economic model are the utilitarian and individual rights or private property defenses. The most significant challenges facing the utilitarian justifications are: those that focus on the adequacy of free markets as a means to the ends of maximally satisfying consumer demand, and those that focus on the appropriateness of these ends as legitimate ethical goals. Of these, market failure is a popular challenge that is raised when considering situations in which the pursuit of profit will not result in a net increase in consumer satisfaction. The two significant challenges to the private property defense are: recognizing that property rights are not absolute, and understanding that historically, corporate property rights differ from personal property, questioning the understanding of stockholders implied by this defense. 3. Explain the philanthropic model of corporate social responsibility. To what degree do you think it differs from the economic model? - Philanthropic corporate social responsibility holds that busine... ... middle of paper ... ...tuation or a person. I will call this this new implement “iron sharpens Iron” the key to this meeting is to set a foundation as to where you can talk to your peer and try to resolve a problem or a situation that may arise without involving managers. One brother sharpens the other. 8. If I were the CEO or the founder of a company I would want to be a fair, straightforward and motivated leader. A leader that is not only appreciative of his employees but I will make sure that they are happy and treated well within my organization. The way that I will create this image is by going above and beyond my duties, reaching out and listening to the feedback of my employee because I believe that they are in fact one of the most important part of my business. Holding open to suggestions meetings or doing employee of the month. My mission Statement would be “help me help you”.
...Foundational Considerations in the Corporate Social Responsibility Debate’, Business Horizons, vol. 34, no. 4, pp. 9-18.
According to Karl Polanyi, a market is a meeting place for the purpose of exchange and transaction (Polanyi 1957, 56). The prompt states that a standard view of market holds that most or all values are external to the logic of self-interested, mutually beneficial exchange. Karl Polanyi and Friedrich Hayek analyze this view of market in their writings and evaluate it according to their own beliefs. Hayek seems to agree with the standard view. He believes that values like the concern for justice or the minimizing of people suffering are not embedded in the market, but are external from it. He supports this view by introducing the concept of what he calls “catallaxy.” Polanyi, however, takes an opposing view to externalized values by saying that values are, in fact, embedded in the market. He presents an overview of how history supports this view.
McElhaney K. (2009, Spring) A Strategic Approach to Corporate Social Responsibility. Executive Forum. Retreived May 16, 2014, from http://responsiblebusiness.haas.berkeley.edu/documents/Strategic%20CSR%20(Leader%20to%20Leader,%20McElhaney).pdf
A few years before the 2008 financial crisis saw a development of the markets. This was because of the widespread view that public good, freedom and prosperity were mostly governed and influenced by markets, and not the government. There was the belief that with market mechanisms, more could be achieved within the society. However, this is not the case. Currently, the market mechanism is constantly being questioned. This is due to the realization that with the belief in the markets, the society grows to be detached from morals and other social values. This calls for action in order to change this perspective. With the markets triumphing, there is constant failure in societal morals and values. However, a crisis such as the 2008 financial crisis
To supply the wants and needs of a consumer, society entrusts wealth-producing resources to the business enterprise.” (Santayana, George. Is The Tyranny Of Shareholder Value Finally Ending? So before we go into greater detail on the different perspectives related to social responsibility, one might question the meaning of social responsibility. It is generally agreed that social responsibility is defined as the business obligation to make decisions that benefit society.... ...
Businesses have a social responsibility to their consumers and communities. Poor social responsibility can affect a company’s profitability and impact customer loyalty. In the 1990’s, Nike faced allegations of being the villains of child labor laws and running sweat shops. In 2008 JPMorgan’s involvement (or lack of) in Madoff’s Ponzi scheme and 2015, Volkswagen’s emissions scandal are all examples of failed social responsibility. Corporate social responsibility (CSR) is more than donating to charities; it’s about doing the right thing and being active members of the community.
Corporate Social Responsibility is the obligation from corporations to utilize their resources to aid and benefit the larger society. The four components of CSR are economic, legal, ethical, and philanthropic. Social Responsibility is a fundamental force in the wealth creation process. If correctly demonstrated, CSR should heighten competitiveness and boost the value of wealth creation to society. A company's CSR Initiatives directly represent who the company is and what it believes it. The m...
Niall Fitzgerald, stated, “Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it... because it is good for our business.” (as cited in Elliot, 2003, para. 14) What is social responsibility? Peter F. Drucker (1981) suggests it is today’s business ethics as defined by society’s ever-changing values, values based on people functioning as a group. Milton Friedman’s (1970) view of social responsibilities is one of individual ethics. Both Drucker and Friedman interchangeably use these terms; ethics and social responsibility, in their case views on the subject. Business ethics and social responsibility are like fraternal twins, born from a womb of moral imperatives and as such, share a base genetic foot-stamp in scope and ideology. In the case views as presented by Peter F. Drucker and Milton Friedman, what ethics and social responsibility is varies between an individual and business view.
Therefore a free market is not desirable as maximizing their utility is priority. So government is expected to correct the market failure by choosing to char...
Corporate social responsibility (CSR) is similar to an individual’s social responsibility. An individual who is socially responsible is aware of how their decisions affect the environment. Corporate social responsibility can be define as “how well a company meets its economic, legal, ethical, and discretionary responsibilities” (Peter & Sarah, p. 51). Corporate social responsibility holds businesses accountable to stakeholders such as consumers, in areas of concern such as environmental factors, community and society in general. As a result successful CSR initiatives creates a sustainable company in all ways: financially, ethically, environmentally, and socially. The moral problem with CSR is based on the belief that “CSR would be a cost that would be higher than the perceived benefits. By financially supporting “charity” based initiatives, firms are not performing their fiduciary duty to their stockholders” (Peter & Sarah, p. 49).
Corporate Social Responsibility, often used interchangeably with corporate ethics, refers to the initiatives taken to assess or evaluate the business’ impact on its external environment. The term mostly applies to contributory efforts initiated by a company that go beyond the scope of regulatory framework it is subject to. Companies engaged in Corporate Social Responsibility programs invest in activities that may not necessarily benefit the company’s profitability in the short-run but have longer term implications such as society’s welfare or a positive impact on the environment.
Corporate social responsibility is a concept that companies own social and environmental concerns in their business operations and in their interaction with their stakeholders. It is considered that the aim for CSR is to convert from philanthropic rationale to performance-driven task. It is also known as Corporate Responsibility, Corporate Citizenship, Responsible Business, Sustainable Responsible Business (SRB),Corporate Social Performance. It is also defined as Additional responsibilities of businesses to local and wider communities apart from its core responsibility of profit maximization(Simpson and Taylor, 2013).
“Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of the life of the workforce and their families as well as of the local community and the society at large”
Corporate Social Responsibility is an organisation’s obligation to serve the company’s own interest and the one’s of the society. Moreover, Corporate Social Responsibility has a definition of a concept where the companies integrate social and the environmental concerns into their own business operation and also on a basis of voluntary with their interactions they have with the stakeholders. Corporate Social Resp...
A company has an economic obligation. It must earn a favorable return for its stockholders in the restrictions of the law. But, corporate social responsibility means that organizations have also ethical and societal responsibilities that go past their economic responsibilities. CSR needs organizations to develop their documentations of their responsibilities to include other stakeholders such as workers, customers, suppliers, local societies, state governments, international organizations, etc. Ethics could be seen as a fundamental component of individual and group activities at the heart of organizations’ errands.