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Social Responsibility

In: Business and Management

Submitted By cmr013
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Social Responsibility
Views on Corporate Social Responsibility

Abstract
This dissertation examines R. Edward Freeman and Milton Freidman perspectives surrounding corporate social responsibility by summarizing their respective articles titled: “Stakeholder Theory and The Corporate Objective Revisited” and “The Social Responsibility of Business is to Increase its Profits”. By examining their articles, I will provide a personal opinion of which of their economic models should be the leading model when it comes to business and corporate social responsibility.
Summary of Articles Author R. Edward Freeman’s article “Stakeholder Theory and The Corporate Objective Revisited,” emphasized a response to a piece put out by Sundaram and Inkpen titled “The Corporate Objective Revisited” by clarifying misconceptions about stakeholder theory and concluding that truth and freedom are best served by seeing business and ethics as connected (Freeman, Wicks, & Parmar, 2004). Freeman supports the above statement by providing the following three main critiques: 1) the mischaracterization of stakeholder theory; 2) the primacy of creating value for stakeholders, and; 3) the real issues of economic and political freedom (Freeman, Wicks, & Parmar, 2004). In response to social responsibility, Freeman clarifies that stakeholder theory claims that no matter what the ultimate mission of the corporations or any form of business activity, managers and owners must take into account the legitimate interest of those groups and individuals that can affect their activities (Freeman, Wicks, & Parmar, 2004). The importance of creating value for stakeholders, also, encompasses social responsibility in that it creates value to shareholders. This allows for managers to create products and services that customers are willing to buy, offer jobs that employees are willing to fill, build...

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