It is fine when an individual business owner sole

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It is fine when an individual business owner (sole proprietor) engages in CSR because he is using all the money, time and energy of the business that he owns so he is not spending the resources of others (not taxing others) and thus can freely spend in any way he wants. Any effect he has on customers (by raising prices to fund these activities) or employees (hiring lower skilled people that decrease wages) will be minimal since it is probably not a large corporation or having any monopolistic power Criteria for acceptable CSR (Friedman): When the firm engages in activities designed to increase profits for the firm. According to Friedman, CSR engagement is appropriate in an ideal free market. No individual can coerce any other, all cooperation is voluntary, all parties to such cooperation benefit or they need not participate. There are no “social” responsibilities in any sense other than the shared values and responsibilities of individuals. The political principle here is conformity and the individual must serve a more general social interest. The individual may have a vote, but if he is overruled, he must conform. It is appropriate for some to require others to contribute to a general social purpose, whether they wish to or not. But unfortunately, unanimity is not always feasible. Criteria for acceptable CSR (Porter/Kramer): Firms should engage in CSR that supports their strategy. This seems like a very important question, I’m just not sure how one would expand the answer under the Porter/Kramer situation as I was sick for this class and the document is very barebones 4) According to M. Porter and M. Kramer and their article “Strategy & Society”, define and describe three factors that led most firms’ activities towards CSR to be less profitable than expected. Please provide an example covered in the article or discussed in class. The CSR activities of companies have not produced the productive results expected because of two factors: 1. Pits business vs. society, when they are really interdependent Companies and society must develop a mutually beneficial relationship as they success of one depends on the success of the other. They must engage in Shared Value (where choices benefit both sides) and no longer try to take advantage of the other or have win or lose attitude. Companies need healthy societies to become healthier organization and expanding demand for business. Society need successful and productive businesses since no social program can rival companies in terms of improving standards of living and social conditions 2. Companies think of CSR generically rather than fitting it into the company’s strategy.
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Companies that use generic CSR activities and focus on many social issues whether they have a significant or negligible relationship with the organization, and have created no real positive social impact.
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