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“There Is One and Only One Social Responsibility of Business–to Use It Resources and Engage in Activities Designed to Increase Its Profits so Long as It Stays Within the Rules of the Game, Which Is to Say, Engages in

In: Business and Management

Submitted By Helena0201
Words 517
Pages 3
This statement illustrates the social responsibility of business and the corporate social responsibility of the business. According to Friedman, the social responsibility only is to make the profit. “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” (Baker, 2015). I do not agree with this statement under the stakeholder theory, I will explain the reason relate to the stakeholder theory.
Explain this statement
In this statement, “There is one and only one social responsibility of the business to increase the profit” In this sentence, we can see that the only social responsibility is to make the profit, whenever do the untrue things for personal gain. For example, to stolen competitor’s product to make the product. “The rules of the game, which is to say, engages in open and free competition without deception or fraud”. These rules is about side-constraints of the business, the company need to follow the rules, and they not be deception or fraud to become the free competition.
Analysis of this statement
By definition, stakeholder are the individual or groups that have an interest in the organization and are affected by its action. Actually, A corporation have can have legal, but also moral responsibility. “If the business wants to be sustained over time, must maximize its profit but do so in a manner that meets the needs of the stakeholder that allow it to remain viable” (John, 2013). When the needs changes, the business have the responsibility to change their rules. The rule of games are important, they create the side-constraints that business must act within. In fact, these side constraints are the rule that business must follow when they…...

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