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Profit Versus Corporate Social Responsibility

In: Business and Management

Submitted By shenaye15
Words 820
Pages 4
In order for business organizations to survive both profit and CSR are significant strategic factors.

Corporate social responsibility efforts have the ability to substantially impact both the external and internal aspects of an organization. CSR efforts can be closely tied to the concept of utilitarianism. In utilitarianism actions are performed with the intent of receiving a specific end result. This end result could be profit, social change and even a mixture of both. While many organizations find themselves seeking to solely maximize profits, others seek to have a significant impact on both the community and society as a whole. While some believe corporations are the sole beneficiaries of such practices, others believe that regardless of intent stakeholders benefit. I believe an organization must implement both profit driving and corporate social responsibility efforts in an effort to successfully maintain their business processes. Views on the benefits of corporate social responsibility differ dramatically across a variety of spectrums. Milton Friedman believes that CSR is in a sense a hypocritical concept due to its end result of greater profit for the corporation as a whole. I personally find this difficult to prove due to the benefits of CSR being challenging and nearly impossible to track within an organization. The business model of grocery store Whole Foods is a good representation of the benefits of incorporating both profit and CSR initiatives as it relates to Conscious Capitalism. In contrast to Friedman’s views, Founder and CEO of Whole Foods John Mackey, stated that he believed that entrepreneurs, not the current investors in a company’s stock, have the right and responsibility to define the purpose of the company in regards to their respective CSR efforts. Through his CSR efforts 5% of profits are donated to philanthropy efforts 5 times a...

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