Social responsibility is subject of considerable debate. For not-for-profit organizations, their responsibility is defined by their mandate. Their donors set this mandate, or at least they accept it. It is actually not much different in for-profit entities, except that the general perception is that earning profit is not socially responsible, whereas the activities of not-for-profit entities are generally considered to be socially responsible.
For a for-profit entity, there are two schools of thought. Now, Friedman (1970) makes a fairly coherent case that the social responsibility of business is to increase its profits. Simply stated, business exists to earn a return for its shareholders. When people donate to a not-for-profit entity, they expect that entity will perform certain acts, and it is the same with respect to for-profit entities. People are investing in those companies to earn a return, and therefore the role of management is to focus on earning that return. Many, however, do not subscribe to this view. While definitely businesses exist to provide investment return, they are also a part of our community and a part of our world. Key to the issue is the idea of negative externalities. Where the activities of a company result in negative consequences that are not priced into the profit/loss equation, the organization should then be obligated to ensure that such outcomes are not negative. This is an interesting challenge for business, because it can be tough to define societal benefit -- some very large businesses would probably have to shut down in order that the balance of their activities is not negative.
Many people prefer to strike a balance. They accept that businesses exist to turn a profit, but they also argue that businesses should at the very least avoiding harm. Just because the business can do something, does not mean that it should. So this is a fairly important distinction. Where Friedman's view is based on deontological ethics and the imperative provided by the role of the manager as agent, many people prefer to take the more balanced approach offered by utilitarianism. Thus, business should pay attention to the outcomes of its activities and ensure that it is making a positive contribution to...
Corporate Social Responsibility in Indian Pharmaceutical Industry An Exploratory Study Outlook of CSR in India History of CSR in India Philanthropy in Indian Society Modern Form of CSR in Indian Society Profile of Indian Pharmaceutical Industry Rationale for Selection CSR Activities by Indian Pharmaceutical Companies Major Influences Over CSR Activities Scope of CSR Activities Comparison of Indian & Western Pharmaceutical Companies This research paper is concerned with the recent practices of Indian pharmaceutical companies in the field of corporate social responsibility. For
Both proposals were consequently amended and eventually accepted by the SEC. The audit committee makes sure that the books aren't being cooked and that shareholders are properly informed of the financial status of the firm. Characteristically, the audit committee advocates the CPA firm that will audit the company's books, appraises the activities of the company's independent accountants and internal auditors, and reviews the company's internal control systems and its accounting
" And a seven-year time limit was set for the states to approve so that the amendment could be ratified, and in 1982, it was found that it could not be approved because the number fell three short of the 38 needed for approval. Why did the ERA fail so miserably? What must be done to win? A Report issued by the U.S. Civil Rights Commission stated that the ERA
Virginia Department of Social Service This is a paper discussing policy in Virginia Department of Social Service, deals with diversity, ethics and privacy issues in the work place. It has 10 sources in Turabian style. Creativity, diversity and innovation define the health and wealth of a nation, a nation is of course not a single unit. It comprises of people of different races, the ideologies, the industries, companies and organizations which are
In the 1960s and 1970s contributors noted the poor status of Indigenous children on measures of formal educational outcomes in comparison to the rest of the population. Suitable solutions ranged from the use of coercive measures to increase school attendance, to new curricula and teaching styles so that teachers were better attuned to the ‘learner’s frame of reference’. These alternative approaches could be characterized as those focused on behavioral
ethical issues for business organizations in the twenty-first century. The forces of globalization have increased the degree to which diverse groups in society have grown dependent on one another. Hence, their expectations influence the freedoms and responsibilities of other groups. The expectations of various stakeholders have placed greater responsibilities on business organizations to be ethical in their communication with their stakeholders. Business organizations are under growing pressure to be
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