"Outline the argument for and against business having social
responsibilities beyond that of making a profit. In the light of this, do
you think businesses should make charitable donations to the Tsunami
appeal? Justify your answer."
26th April 2005
To best understand the nature of the posed question I propose the
articulated finding of the widespread acceptance that cooperate official
and labour leaders have a 'social responsibility' that extends beyond the
realm of serving shareholder and its members (Friedman 1962, p. 133). The
following essay is aimed at highlighting the role of businesses, whether
they are to have interest other than solely making profit and if so what
groups should benefit from the success of a company.
According to Wilson (2004, Vol.23, p. 23) arguments, the nature of
existence for business or corporations should be 'everything to do with
service to society, and only secondarily to do with profitability.' But
this is quite on the contrary to the apparently antediluvian view put
forward by corporate executives Friedman and Levitt (cited in Wilson, 2004,
Vol.23, p. 23) highlighting '.the business of business is making money, not
sweet music.' So why is there discrepancy between the ideal view of
business and which should be placed under higher priority the shareholders
or stakeholders (society).
To understand both points of view we need to identify the party's involved
and the relationship they have to the business and business operations. A
stockholder (shareholder) is one that owns or holds a share or shares of
stock in company, enterprise or organisation (The American Heritage
Dictionary of the English Language, Fourth Edition, 2005 ...