Tuesday, January 7, 2014

Arguments For and Against Corporate Social Responsibility


Arguments For
Business is unavoidably involved in social issues. Business has the resources to tackle today’s complex societal problems. A better society means a better environment for doing business. Corporate social action will prevent government intervention.
Arguments Against
Profit maximization ensures the efficient use of society’s resources. As an economic institution, business lacks the ability to pursue social goals. Business already has enough power. Because business managers are not elected, they are not directly accountable to society.
Toward Greater Social Responsibility
Iron Law of Responsibility
Those who do not use power in a socially responsible way will eventually lose it. If business does not meet the challenge of social responsibility, then government reform legislation will force it to meet its obligations.

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