Friedman within the context of csr identify if the

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business is to increase its profits” article by M. Friedman within the context of CSR. Identify if the two articles can be reconciled and if so on what basis? The two articles differ greatly and are at different ends of the spectrum in terms of the authors’ opinions regarding businesses and social responsibility. Friedman: Businesses cannot be socially responsible since they are not individuals therefore that responsibility would be passed on to corporate executives. Only negative consequences result when corporations and thus execs take on CSR as in the case where the exec has good intentions he uses the money that isn’t his (taxes others basically) and uses it how he sees fit and in negative situations execs use it as a cloak for self interest. Social responsibility should therefore be left to political mechanisms.
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Porter: Companies can use integrate social needs into its strategy to create a competitive advantage and benefit not only to society but actually create long term economic benefits for the business. Businesses must focus on a few social issues to focus on where it believes the company can succeed in and have the greatest impact instead of focusing on a multitude of unfocused CSR initiatives. 2) According to M. Friedman in his article “The social responsibility of business is to increase its profits”, what are four arguments that support his view that a firm should not engage in corporate social responsibility. Corporate execs are employees of the individuals who own the company and therefore his primary responsibility is to them and to conduct business in accordance with their desire. When he does the following “socially responsible acts” for the company, he is spending the money of others: don’t raise price of products to prevent inflation (spending stockholder money), raise expenditures to reduce pollution (spends customers’ money by increasing prices to them), hire bums (spends employee money by driving down wages) Basically the exec is imposing taxes (using others’ money) and spending it at his discretion; which only gov’t and its processes should be able to do. He is legislator, jurist, and executive by determining who to tax, by how much and how to spend it How does he know that his actions will have positive effect like actually prevent inflation or pollution? Many companies use social responsibility to cloak their self interest like providing services to the community just so they can attract better employees or get better tax benefits, etc Execs try to affect/influence the market and call for gov’t price and wage controls (which all may hurt the market) in the name of social responsibility because many of them are shortsighted when it comes to things external to their business 3) According to M. Friedman in his article “The social responsibility of business to increase its profits”. Under which conditions/criteria would CSR engagement by a firm be acceptable to him and Porter /Kramer?
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