Answer to Question #237580 in Marketing for Penny

Question

What are some of the arguments for and against corporate social responsibility?

Answer 1

The term corporate social responsibility refers to practices and policies undertaken by corporations that are intended to have a positive influence on the world. The key idea behind corporate social responsibility is for corporations to pursue other pro-social objectives, in addition to maximizing profits. 

The following are some of the arguments for corporate social responsibility. Firstly they argue that business is part of society meaning that society is a system and business is one of its subsystems and every subsystem of a system functions for the betterment of the whole system and not for its own betterment only. The second argument in favor of corporate social responsibility is that it is long-term self-interest for business meaning that the existence of any business is because of the existence of various social organs like financiers, employees, customers, society as a whole, and not otherwise. Thirdly, corporate social responsibility has a moral justification that emerges from the fact that if anyone takes something from others, he must give something to them in return. Finally, corporate social responsibility creates a better public image. The creation of this type of image is a source of satisfaction itself for those who operate a business.

The arguments against corporate social responsibility are as follows; firstly, Businesses are owned by their shareholders meaning that the money spent on corporate social responsibility by managers is theft of the rightful property of the owners. Secondly, companies that focus on corporate social responsibility are not successful businesses in the marketplace. Thirdly, companies don’t care as they only focus on profit, and lastly, it is the responsibility of the government to deal with social and not business.