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The Ambiguity of Corporate Social Responsibility

In: Business and Management

Submitted By aggarwalc
Words 3409
Pages 14
In this ever-changing world of economics and business operations the definitions of business services and the strategies are ever changing as well. These days the way managers operate and strategize their business policies has taken a stance against the previous operational strategy that a business exists only to make profit without any consideration or regards to anything else in the world as said by the economist Milton Friedman in his essay “deriding the idea that a business had any responsibility other than to maximise its profits within legally and ethically acceptable margins, arguing that ‘a corporate executive is an employee of the owners of the business.

A few new theories were introduced in the famous essay written by Milton Friedman. These theories suggested that the only reason a business exists is to make profit and this is done through the actions of all the executives of any business. The only reason an executive is employed is to take decisions that will have a direct affect on the profitability of a business and thus in effect it will be the consequent to the livelihoods of the employees of any corporation. It is exactly for these beliefs that the idea of a socially responsible corporation seems like a far-fetched one in the era when this philosophy was hailed as the cornerstone of the ideology required for any business operation, where the only reason a business existed was to make money and that’s all.
The whole argument involves around the case of CSR, how exactly to describe the definition is where the ambiguity starts, or does it? Within the economic industry the main responsibility of any corporation has been to make money and to increase the business value for the shareholders (as mentioned above). But with time this view is nothing but the misty remnants of the past as in the last decade the viewpoint of the major corporations are...

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