According to Friedman, business only has one social responsibility: to make profits. This
is done through adherence to the moral and legal standards of the game that society has
established. Friedman also claims that few trends can seriously undermine the foundations of our
society by encouraging corporate officials to disregard social responsibility in favor of
maximizing shareholder returns. I would have to say that I disagree with this statement. I believe
that businesses have a greater responsibility than making money. Corporate social responsibility
or CSR is a business obligation that a company has to perform in a way that is good for the
company and its shareholders. Scholars have various definitions of what it means and how it can
be done, and they frequently refer to behaviors that are outside the interests of the business.
According to Hu et al. (2020), corporate social responsibility refers to actions that go beyond the
company's interests in order to further social good.
As a business, your stakeholders are also more than just the individuals who own the
company. The idea of corporate social responsibility comes from the different stakeholder groups
that an organization serves, including consumers, employees, the community, and investors (Hu
et al., 2020). Despite the importance of a profitable business, scholars believe that it's still
important for companies to consider their social responsibility (Hu et al., 2020). CSR is a wide
category of management strategy that encompasses a range of responsibilities, including legal,
economic, ethical and philanthropic responsibilities (Carroll, 2016). CSR has become prevalent
globally. It is now included in organizational culture and practices. CSR has gained widespread
acceptance among businesses and society as a whole thanks to its ability to make business case
arguments (Carroll, 2016). Proverbs 11:1 says, “A false balance is abomination to the LORD: but
a just weight is his delight” ” (King James Bible, 1769/2022). I feel that spiritually speaking
businesses have an obligation to have corporate social responsibility as well.
References
Carroll, A. B. (2016). Carroll’s pyramid of CSR: taking another look. International Journal of
Corporate Social Responsibility, 1(1). https://doi.org/10.1186/s40991-016-0004-6
Hu, B., Zhang, T., & Yan, S. (2020). How Corporate Social Responsibility Influences Business
Model Innovation: The Mediating Role of Organizational Legitimacy. Sustainability,
12(7), 2667. https://doi.org/10.3390/su12072667
King James Bible. (2023). King James Bible Online. https://www.kingjamesbibleonline.org/
(Original work published 1769)
References
Carroll, A. B. (2016). Carroll’s pyramid of CSR: taking another look. International Journal of
Corporate Social Responsibility, 1(1). https://doi.org/10.1186/s40991-016-0004-6
Replies
H Hanna,
I agree with you that For-profit corporations are primarily focused on generating profits for their
owners. However, their purpose should not solely revolve around money. It is also true that
businesses can use their operations to create social and economic value and improve their
competitive advantage, and businesses can increase their financial performance by evaluating
their corporate social responsibility. I was reading an article by Carroll, (2016), he has
researched a lot about this topic and a lot of scholars refer back to him, but he stated that
corporate social responsibility strategy is a broad category of management that covers a variety
of responsibilities and duties, such as charitable and legal obligations. It has become prevalent in
organizations globally and is now included as part of their culture and practices, according to
Carroll, 2016. Due to its capability to make compelling business case arguments, it has gained
widespread recognition among companies and society.
