Edward Freeman and Milton Friedman both had great argument on social responsibility, Friedman argued that “There is one and only one social responsibility of business to increase its profits”. Friedman believed that taking on a social and moral issues is not necessarily effective for a company. This will place those corporations at a better competitive disadvantage if they do not focus on making their profit. Taking on social and moral responsibility is not economically feasible for the corporation. Corporations should just focus on earning a profit and leave social issues to others. It’s in the best interest of a corporation to not deal with social problems. However, if Friedman truly believed in that corporations have no social responsibility then it’s possible that corporations are encouraged to steal, defraud for their customers and shareholder.
Looking at Freeman in the other hand, he believed in moral responsibility to all stakeholders. He ...view middle of the document...
Business should be able to understand how they are effecting the natural environment and it’s their responsibilities to address the issues, however most don’t. Another social responsibility issue business should be looking at is how business market good and services globally. Some business has marketed product in other countries after being banned in the US. There is a reason to why it was banned yet corporation continue to sell It, ignoring the social responsibility that comes with selling it.
Freeman in so many ways is correct in how he views social responsibility. Corporations are not to be successful all by its self, in order to have a successful business, you have to have great products, services, customers, employees that are willing to make that business better. In today’s society, the role of business is not just to create wealth for the company, rather for the people that the company interacts with. Business can’t thrive without a society supporting them and just making profit is not going to cut it, in a long run for a business.
Look at Bill Gates the co-founder of Microsoft one of the richest most successful business man in the world. He is not just about making profit in the short run but rather in the long. He has donated about 28 million dollars to charity and about 8 million dollars to improve global health. Yes, he has a vision of making profit, however that profit is also being used to better not only his corporation but that shareholders that make it possible for him to be successful. Along with that he is changing the world somehow. You want people in a community to support what you do and as a result you have to give something back to them. Business such as Microsoft that give back to its community, help employee within the company have a moral values and gain better ethical decision making as well, but most importantly makes the company have a moral value of being aware of socially awareness and responsibility throughout the company. The importance for corporations to practice social responsibility should not be about profit motivation, but rather be about moral and ethical issues, within the company and outside. It’s their responsibility to be aware and to address those social responsibility issues that accrue.