It is sometime suggested that CSR activities are increasing strategic in that it affects that core business of the firm and its growth, profitability and survival? Drawing on an example of a corporation/company (National/ International), discuss this in the context of business strategies, in particular on the issues of competitive advantage and firm performance.
In this essay, we will discuss why organizations began CSR and how it is or can be or why should it be implemented. CSR usually get started off either as an integral part of the business strategy or corporate identity, or it can be used as a defensive policy, with the latter being used more often by companies targeted …show more content…
A bright supporter of the narrow view is as mention in Milton Friedman theory that those who claims that diverting corporations from the chase of profit makes our economic system less effective. Friedman states: “The stockholders or the customers or the employees could separately spend their own money on the particular action if they wished to do so. The executive is exercising a distinct "social responsibility," rather than serving as an agent of the stockholders or the customers or the employees, only if he spends the money in a different way than they would have spent it” ( M. Friedman 1970).
Another defender of narrow view in corporate social responsibility is famous economist Adam Smith, whose “invisible hand” argument states that if every member of society in a free market economy strives to promote his own economic interests they are led to promote the general good. This may be a good argument in other eras of economics, but using this argument to justify for support of the narrow view will reasonably arise criticisms.
The hand-of-government argument of the narrow view states that businesses should have no social role other than making money.
According to inept-custodian argument business executives lack moral and social expertise, and can only make economic decisions. To ask executives to take charge of