Fallacies of Corporate Social Responsibility - 1773 Words

FALLACIES OF CORPORATE SOCIAL RESPONSIBILITY INTRODUCTION In a contemporary world, a business-society relationship has evolved well beyond a simple business model to a much broader - socially responsible - corporate stewardship. As of this result, Corporate Social Responsibility (CSR) emerged as a concept that encourages companies to be ethical and responsible with the environment it operates in so as to wider impact on society. Though, CSR is now argued so widely as to have become a subject matter for serious arguments. Whereas business‘s human side stressed the importance of social responsibility, it also opened the room for criticism for its opponents, some of who have expressed legit business concerns; others endorse the belief that†¦show more content†¦5) and â€Å"one could almost argue that Friedman is saying that those with the desire to work with a social conscience have no place in the free market†. Besides, a lack of CSR initiatives may affect profits like it happened with Nike in developing countries. The f ootwear company received a lot of negative comments due to someone’s decision to employ child labour. General public, reveled by Russell-Walling, is CSR’s best strength that Friedman may have neglected (as cited in Hampson-Jones, n.d. p. 2). Peter Drucker, a well-known management expert, continues this theme by saying: Economic performance is the first responsibility of a business. A business that does not show a profit at least equal to its cost of capital is socially irresponsible. It wastes society’s resources†¦But economic performance is not the sole responsibility of a business†¦Power must always be balanced by responsibility; otherwise it becomes tyranny (Drucker 1992, p.101 cited in Jones, n.d., p. 2). CORPORATE SOCIAL RESPONSIBILITY IS A PR EXERCISE There is, however, another key argument against CSR that is concerned with its ‘true intentions’ disguised by marketing and PR practices. For example, Peter Frankenta (2001), to name a few of his concerns, believes that CSR is an invention of PR because it lacks â€Å"commonly understood definitionShow MoreRelatedBusiness and Its Publics: Cycle 1 Essay1697 Words   |  7 Pagesadministering important social services such as education and environmental protection. Supporters of market regulation believe externalities should not be left to the free market; instead, they contend these behaviors should be regulated by the government or be shouldered by the corporations that cause them. Edward Freeman, a famous economist, champions efficient markets in his essay Managing for Stakeholders. 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