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Social Responsibility Term Paper

Social Responsibility Corporate social responsibility

Companies are facing increasing pressure from investors, consumers, and the society. For investors, they are required to increase profits while consumers and the society require them to be socially responsible. Scholars have studied corporate social responsibility for years and over the years, they have documented their findings concerning social responsibilities of corporations. Over the years, consumers have built the typology of unresponsive to highly responsive purchasing in response to corporate social responsibility. Unilever and Walt Disney are examples of companies that have had corporate social responsibility in their cultures since their early years. These companies have benefited from being socially responsible by gaining increased publicity and responsive purchasing from consumers. Their profits have also increased considerably because of taking care of their social responsibilities. Companies should embrace corporate social responsibility in order to conform to the unavoidable concept of social purpose of the corporation.

Introduction

Businesses have been criticized for lack of focus on their societal responsibilities. Often complaints are raised that companies put profits before the good of the society. This is what led to the birth of the concept of socially responsible business or corporate social responsibility (CSR) as it is commonly referred to. A study conducted in 2011 by the Massachusetts Institute of Technology (MIT) showed that CSR is a part of sustainability for U.S. corporations and plays a part in 70% of companies Haanaes et al.()

. Large organizations such as Unilever have championed sustainable business through corporate philanthropy. Social responsibility is not only expected of large companies. Small companies are also increasingly finding...

This paper focuses on organizations and their need to engage in CSR activities and present a case for "spending money to make money."
Discussion

The question on whether these CSR activities are genuine philanthropy or ultimately profitable activities will be answered by finding sources of information to present an argument for both cases. CSR activities will be evaluated both in the short-run and the long-run to see whether there are any benefits of corporate social responsibility.

According to Friedman 49(Friedman

who authored Capital and Freedom, the purpose of the corporation is described as to engage in activities that will increase their profits for as long as it is within the rules and regulations of business and it engages in open and free competition without fraud and deception. In simpler terms, "The social responsibility of business is to increase its profits," )

. This article was the first major analysis of corporate social responsibility. It also forms the basis of today's argument for CSR. However, critics of Friedman's work have also emerged. Some critics stated that Friedman had an outdated view of corporate ownership Husted 177(; Jones 61)

. Shareholders are passive in companies therefore do not exercise active control over the company. Furthermore, other critics state that through dividend processes of business, they are separate from political, legal, and social decision-making Joseph 403.

These critics present an argument that corporations are…

Sources used in this document:
Works cited

BENabou, Roland, and Jean Tirole. "Individual and Corporate Social Responsibility." Economica 77.305 (2010): 1-19. Print.

Friedman, Milton. Capitalism and Freedom. Chicago: University of Chicago Press, 1962. Print.

Haanaes, Knut, et al. Sustainability Nears a Tipping Point. Boston, MA: MIT Sloan Review, 2012. Print.

Husted, Bryan W. "Risk Management, Real Options, and Corporate Social Responsibility." Journal of Business Ethics 60.2 (2005): 175-83. Print.
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