The Social Responsibility of Corporate Management

The Social Responsibility of Corporate Management - The...

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The Social Responsibility of Corporate Management Adam Ohanesian SCH-MGMT 783 Spring 2010 Business and Its Environment Professor Enghagen
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The question proposed is what is the social responsibility of corporate management? Besides answering the question, I will provide two points of view. But first, I will give a definition of social responsibility, and a brief overview of why it is necessary. Second, I will provide the numerous responsibilities corporate management has towards owners, employees, society, government, and consumers. Third, I will provide a few arguments for corporate social responsibility and a few arguments opposing corporate social responsibility. Fourth, I will provide corporate managements social responsibilities from the viewpoints of Professors Coelho, McClure and Spry from Ball State University. Last, I will provide corporate managements social responsibilities from the view point of Professor Post from University of Toledo. Corporate social responsibility (CSR) can be defined as the obligations of corporate management towards the society and other concerned parties. More detailed, the ethical, legal, economic, and discretionary expectations that society has of an organization. The concept is that organizations have ethical and moral responsibilities in addition to their expected responsibility to earn a return for investors. There are many non market factors such as but not limited to employees, suppliers, customers, government, the community, and environmental interest groups. A new addition to this list is technology. For example, the Internet has opened up the possibility of abuse by corporations or their employees. Issues of privacy and confidentiality are of concern. These groups are either directly or indirectly affected by the organizations activities and they are the stake holders of the business.
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Milton Friedman’s definition of corporate managements social responsibilities is as follows “There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition, without deception or fraud.” Basically do whatever it takes to turn a profit for the owners as long as you obey the laws. If the market cannot solve a social problem, it is now the government responsibility, not the corporation. Some believe corporate social responsibility is equivalent to business ethics however I believe it is not equivalent, but related to or part of. Business ethics for the most part, focuses on the moral judgments and behavior of individuals and groups within an organization. Corporate social responsibility focuses on the legal, ethical and discretionary responsibilities of an organization.
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The Social Responsibility of Corporate Management - The...

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