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Unformatted text preview: The Case against Corporate Social Responsibility Karnani The idea that companies have a responsibility to act in the public interest and will profit from doing so is flawed. Large companies now claim that they aren't in business just for the profits, that they're also intent on serving some larger social purpose. Private profits and public interests are aligned, the idea of corporate social responsibility is irrelevant: Companies do everything they can to boost profits will end up increasing social welfare. When profits and social welfare are in direct opposition, an appeal to social responsibility will almost always be ineffective, because executives are unlikely to act in the public interest and against shareholder interests. As society looks to companies to address these problems, the real solutions may be ignored. These companies are benefiting society while acting in their own interests; social activists urging them to change their ways had little impact. It is the relentless maximization of profits, not a commitment to social change their ways had little impact....
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- Spring '10