Managing Ethics and Corporate Social Responsibility
However, during the past ten years, there has been a drastic change in the way people in the corporate world think. They have acknowledged the importance of CSR as a business strategy which could propel the business to greater heights. Moreover, researchers have analyzed and concluded that CSR is indeed advantageous for business entities. Meaning Of The Phrase "The Business Of Business Is Business" Milton Friedman claimed in the New York Times Magazine piece written in the year of 1970 that “the business of business is business”. He meant that the sole objective of a business was to ensure that profits were generated and maximized for shareholders. However, this philosophy has sparked debate worldwide making people doubt the truth in what Friedman stated.
It has opened avenues for research which has enabled businesses to strategize as to whether to be involved in CSR or not. However, most companies often find themselves engaging in activities which promote CSR in order to increase their profit margins and be competitive with other firms which incorporate the same strategy to multiply their sales and profits (Porter and Kramer 13). Do businesses Owe Society Anything? Various individuals have brought forward different arguments of supporting or failing to support CSR since some are convinced that they owe the society nothing. Others truly believe that they actually owe society a great deal which makes them venture into ways which promote other people’s welfare. Products which guarantee safety always attract customers and minimizes costs related to accidents.
Moreover, using water, energy, and land effectively makes a business to be more productive. In turn, a society requires companies that are successful since it ensures that jobs are created and standards of living are also improved at the same time. This only shows that these two entities ought to us the principle of shared to guide them through their endeavors. Government Regulations Laws and regulations by the government and exposure to various critics are increasing exponentially. Various researchers have shown that it actually contributes to a company’s performance positively whereas some claim that it depletes resources from the revenue made by a company (Trevino and Nelson 349). It can be concluded that companies with a better rate of social performance get more revenue, sales and also have high stock prices.
According to a survey conducted online, sixty-six percent of customers prefer to pay more for goods or services from businesses who are responsible both environmentally and socially. Moreover, it also proves that consumer-goods' brands who commit to ensure sustainability perform better as compared to the firms which fail to do so. Furthermore, CSR affects the ability of a business to attract skilled and talented employees. Conclusion In conclusion, CSR is the initiatives a business undertakes in order to benefit the society. Friedman claims that companies need to ensure that wealth is maximized because since any other kind of philanthropic work could minimize profits. Different individuals have argued that they owe society nothing and hence don't need to be involved in CSR.
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