Social Responsibility And Its Impact On The Business

It is overwhelming how corporations have embedded a social responsibility in their mission statements and company objectives. This leaves us with one assertion that is that corporations do have some level of obligation towards society’s morality; however, the corporation itself is not a moral agent (Klaus M. Leisinger). The discussion that follows is about corporations being moral agents or otherwise; however I will reach a conclusion that corporations do have an obligation that extends beyond obeying the law; evens so this obligation have been derived from the corporations quest for profit making. Corporation’s obligation

In the article, “The Social Responsibility of Business Is to Increase Profits,” Friedman states that “businessmen believe that they are defending free enterprise when they proclaim that business is not concerned merely with profit but also with promoting desirable social ends.” This social responsibility is defined as Corporate Social Responsibility (CSR), which is the belief that “corporations owe a greater duty to their communities and stakeholders” by having a “social conscience.” This, among other things, includes being environmentally responsible, contributing to non-profit organizations, and eliminating discrimination.

The expectation that businesses behave responsibly and positively contribute to society all while pursuing their economic goals is one that holds firm through all generations. Stakeholders, both market and nonmarket, expect businesses to be socially responsible. Many companies have responded to this by including this growing expectation as part of their overall business operations. There are companies in existence today whose sole purpose is to socially benefit society alongside businesses who simply combine social benefits with their economic goals as their company mission. These changes in societal expectations and thus company purpose we’ve seen in the business community over time often blurs the line of what it means to be socially

Company Q is a small local grocery store chain who has made poor decisions when it comes to social responsibility. Company Q’s business is suffering because the owners’ do not know the heart of running a business, Social responsibility. When opening a business it is not all about the money. Sure it is nice to think about growth and reaping the benefits of a bigger bank account, but the first thing that is important in business is the consumers. Who is buying what you are selling? What will make consumers buy more, comeback, or tell friends? Businesses flourish around consumers. So if it is money you are after, then consumers are who you need and want. So in business in order for Company Q to get what they want and need, they will need to give the consumer what they want and need, social responsibility. Give back, it has always been said “It is better to give than to receive.” After careful review of Company Q's business actions, this company lacks social responsibility in many areas.

Write a brief essay responding to the given statement (suggested length of 2–3 pages) in which you:

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Milton Friedman was a 20th century American economist who advocated free-market capitalism. In 1970 he submitted an editorial article entitled “The Social Responsibility of Business is to Increase its Profits” to the New York Times. In the article, Friedman argues that in free market systems it is nonsensical to make corporate entities adhere to “social responsibilities of business” pushed by activists, as corporations are artificial in nature, and thus do not have any social responsibilities other than to make money for the shareholders of the company. I will argue against this paper and support the claim corporations do in-fact have moral and ethical obligations to more than just their shareholders, and that many individuals have their stakes and livelihoods embedded within the acts of corporations. As well, the idea in the article that corporations are not moral agents has led to unsavory violations of human rights across the world, failing Kant’s second formulation of the Categorical Imperative, as well as not satisfying Act Utilitarianism. Thus, corporations, and individuals within those corporations, possess considerable ability to make ethical decisions that have great impact to many people, culminating in the truth that corporations have moral status.

Ethics and social responsibility are important areas within Chipotle Mexican Grill’s business. Both areas have an interactive relationship that plays a role in building profitable businesses as well as a well-rounded community. Ethics refer to sets of beliefs about right and wrong; and business ethics involve the application of these issues in the workplace. The universal ethical standards, which involve trustworthiness, respect, responsibility, fairness, caring, and citizenship, are standards that apply to all people and should definitely be held high within the workplace. Social Responsibility is the obligation of a business to contribute to society. Chipotle’s social responsibility affects

Becoming a socially responsible company is an ethical goal every business has a duty to strive for. As a small grocery store, Company Q currently has policies in place that do not create a socially responsible culture. Currently they have three main focuses that need to be addressed, the closing of stores in high crime areas, the high margins on health conscious and organic products, and the policy for day-old products. The current policies do not improve the companies reputation as a socially responsible company. In fact some of the actions negatively impact the company and its reputation.

When trust is damaged employee performance declines, employee loyalty declines, employee theft rises and the relationship a company had with its clients ultimately fails.

Is the deception of consumers worth making a profit? The Ford Pinto, popular car of the 1970s, made a profit off of a vehicle that endangered the lives of hundreds of people. In his essay “Pinto Madness” Mark Dowie, author and Pulitzer Prize nominee, exposed the unethical decisions made by Ford Motor Company. When it came to their customer’s safety and profit for the company, Ford made a decision that led to consequences their customers had to pay the price for. Should the business be held accountable for these actions? In his essay “The Social Responsibility of Business Is to Increase Its Profit” Milton Friedman, powerful economist, discusses what a business should prioritize in the economic system. Friedman declares what a business is responsible for and the guidelines they must follow. Due to Friedman’s view, he would not have condoned the actions and decisions that the executives at Ford Motor Company took.

A corporation does do business within a vacuum; rather exist as part of larger collective framework of society, stakeholders and a global business community. I believe that corporations which are profitable, and promote moral and ethical standards are the benchmark of success; additionally, corporations bear a great social responsibility to the society it exists within, an simply working within “the basic rules of society, both those embodied in law and those embodied in ethical custom” is not enough (Friedman, 1991). While Robert Solomon and Milton Friedman both champion the use of ethics and morality in business, they disagree on industry’s responsibility to society, and corporations role to include communal obligation while crafting policies and guiding principles for their business decisions.

Is the deception of consumers worth making a profit? The Ford Pinto, popular car of the 1970s, made a profit off of a vehicle that endangered the lives of hundreds of people. In his essay “Pinto Madness” Mark Dowie, author and Pulitzer Prize nominee, exposed the unethical decisions made by Ford Motor Company. When it came to their customer’s safety and profit for the company, Ford made a decision that led to consequences their customers had to pay the price for. Should the business be held accountable for these actions? In his essay “The Social Responsibility of Business Is to Increase Its Profit” Milton Friedman, powerful economist, discusses what a business should prioritize in the economic system. Friedman declares what a business is responsible for and the guidelines they must follow. Due to Friedman’s view, he would not have condoned the actions and decisions that the executives at Ford Motor Company took.

ITC Ltd has worked exremly hard to start several procedures that have led to compliance of the standards of social responsibility. ITC’s dealings within the tobacco industry have contributed to the increase in company revenues and the company has worked towards following the triple bottom line and giving back to society. Most, businesses pay little attention to their social responsibilities and make it part of their overall strategy, instead they concentrate more on financial benefits from the sales of products. Consequently, managing business in a socially responsive manner contributes to the best combination of business success and societal acceptance, trust and loyalty. Giving back to the community in ways that benefits only society such as planting trees to curb pollution and help the environment or using biodegradable materials in packaging can reap financial benefits to a company by building loyalty among the community. The notion of business ethics and corporate social responsibility is becoming a defining concept in all industries worldwide. ITC believes in the Triple Bottom Line philosophy where the performance and perception of a corporation should not be judged only on the basis of its financial statements or revenues, but its environmental and social performance as well. ITC is one of the only companies in the world to be carbon positive, water positive, and conduct solid waste recycling. ITC provides water to areas where water is very

The essential aim is to hold corporations responsible for their actions and encourage a positive result through their business activities that affect communities, stake holder, consumers and society.