Corporate Social Responsibility ( Csr ) - 2090 Words

Corporate Social Responsibility (CSR) Introduction Corporate Social Responsibility The Broad View of CSR Supporters of the broader view believe that businesses have other obligations apart from pursuing profits. Because of their great social and economic power, corporations must carry social responsibility towards society and wider community. Businesses cannot make decisions which are made solely with economic point of view, because they are interrelated with the whole social system business activities have deep implications for society. As a result, society expects business to pursue other responsibilities as well. A social contract between society and business represents an understated understanding within society about the proper†¦show more content†¦By doing good deeds without expecting anything in return, companies are able to express their concern for specific issues and support for certain organizations. - See more at: http://www.businessnewsdaily.com/4679-corporate-social-responsibility.html#sthash.kSxaPytP.dpuf The Narrow View of CSR The One objective of Narrow view is to make money. These supporters believe that caring about the environmental, social and other problems should be the responsibility of government and non-profit making organizations sponsored by governments. Both views on Corporate Social Responsibility have become the topic of controversy as CSR is becoming increasingly essential for the society where the business operates. With time the classical theory or the narrow view of CSR is becoming fader and the socio-economic approach is gaining motion. Internationally most businesses are adopting CSR along with their economic interests. As stated above the narrow view suggests that the primary and sole objective of business would be to maximize profits. Scholars supporting different views have generally argued on the narrow and the broad views. For instance Levitt had stated that eventually businesses have two main responsibilities. One is to comply with the basic standards of any business and second is to profit from the business. A keen supporter of the narrow view is Milton Friedman who claims that diverting corporations from the chase of profit makes our economic system less effective.