SOCIAL RESPONSIBILITY 1
of Friedman’s Theory
"Thereis one single social responsibility for a business to apply itsresources while engaging in activities shaped to increase its baseand profits as long as it stays within the game`s rules. This is inthe same manner as saying, to engage in open and fair competitionwithout fraud or deception" – Milton Friedman (Carroll, 2008).Friedman`s primary point was that a business does not have a socialresponsibility. This is to say, it has no obligation in the sense ofpromoting desirable or favorable social ends, for example, by havinga clean environment, a society free of prejudice, fulfilling jobs,and others.
Friedman emphasized that by taking into consideration the socialcost burden, businesses become less effective and efficient. In sucha case, prices accelerate to cater for the increase in costs or thepostponement of new research or activities. Again, firms remainresponsible solely to their stakeholders. Here, he meant exercisingpure and logical economic reasoning (Schwartz & Saiia, 2012).According to Friedman, maximize the number of profits, but one shouldnot forget that the focus may curtail long-term gains, which breaksup the societal rules. This is because formal laws and informalrules, for example, acceptable behavioral norms, would put one out ofbusiness. These sentiments are in alignment with the Utilitarianethical theory, whereby it demands one to weigh in carefully on alloutcomes, which are not just the short-term beneficial economies toan individual.
of Carroll`s Theory
Businesscompanies are presented with four responsibilities, which includeeconomic, legal, ethical, and discretionary.
Economic – production of goods and services valuable to the society so that the company in question would repay its stakeholders and creditors.
Legal – Is defined by governments within the law, which the firm`s management is expected to adhere and obey.
Ethical – It follows the general beliefs held concerning the manner in which an individual operate in the society (Schwartz & Saiia, 2012). Here, the management is expected to work with the community and its employees to plan for layoffs, even when no laws emphasizes on this. Again, a lot of people are projected to handle these things.
Discretionary – A total voluntary set obligations a company assumes, which includes engaging in philanthropic contributions, providing day-care stations, training hardcore and experienced unemployed individuals. Most of the people do not expect companies to handle such things.
Principlesof CSR Theories Implemented at my Work
Some of thesocial responsibility policies I would implement in my workplaceinclude the preservation and development of cultural identity of myjob place, protecting the rights of employees, and engaging inanti-corruption crusades and movements from within my work place withother like minded individuals (Carroll, 2008). Other principlesinclude an emphasis on environmental and natural resource protection,to establish favorable workplace conditions for the workers, and tonarrow down the existing gap between the leadership and the staff.Additionally, I will engage in activities beneficial to the communityand to insist on financial transparency when reporting andtransparency in other activities in the firm.
"Mountingsocial business" will be the motto for my long-term descriptionof my business (Keinert, 2008). In alignment with efficient businessoperations and development, we are committed in entirety tocontribute to our immediate community and the society as a wholethrough engaging in direct social activities, charitable movements,and financial activities. Therefore, there will be a need to raisesocial responsibility and awareness of every member firm involved.
ACompany where Friedman`s theories would apply
The operationsof Vedan Enterprise Corp. Ltd is an example of the enterprise. Theorganization is an MSG – Monosodium Glutamate plant. Since itsestablishment in 1991, the firm has remained next to the Thi VaiRiver, and thus, its treatment of waste water had a significantinfluence on the Thi Vai River. After the company began itsoperations, the river started to be polluted (Keinert, 2008). By1995, the river had changed its original color, and in turn, exudesthe disgusting smell. The damage to the river caused massive damageto people living along the river.
The reasonsbehind the firm`s actions are to reduce the cost of processing waste.On the other hand, the consequences are enormous with one of them,including suspending the licenses for the plant`s wastewaterdischarge. The VND will be fined in excess of 127 billion dollars,and it will have to pay costs of river restoration (Carroll, 2008).Other consequences will require the plant to construct a new seweragetreatment operational treatment to reduce the amount of waterpollution. Their organization will also experience a massive declinein its revenues with its operations having to be interrupted for awhile. There was also a significant and high-profile fall inreputation and income.
AnOrganization Carroll`s Theories would apply
Ben &Jerry`s is a manufacturing company based in Vermont that deals withice cream, sorbet, and yoghurt. It was established in 1978, but wassubsequently acquired by another multinational corporation –Unilever. Ben & Jerry`s mantra was "Business has socialresponsibility to the environment and the community" (Schwartz &Saiia, 2012). The mantra individually walked the talk whenever itcomes to engaging in corporate social responsibility.
Ben & Jerry`s Community : The engagedthe community through social and community-based projects. Forexample, in Vermont, the Dairy Farm Sustainability Project (DFSP) waslaunched in 1999 by the firm. The project was to come up withpractical approaches, which could be applied to regular dailyoperations towards safeguarding the quality of water from phosphorusand nitrogen runoffs. This was done while sacrificing the economicviability of the land and making sure the farm remained faithful tobusiness sustainability.
CorporatePhilanthropy: Ben & Jerry`s donated a portion of itspercentage profit as a philanthropy as a plan to exercise itsflagship efforts to remain socially responsible in its quest tocontribute to the community (Schwartz & Saiia, 2012). Corporatephilanthropy, in its actual sense, is employee-led through CommunityAction Teams (CATS) and Ben Jerry`s Foundation at each site.
In summation,both Friedman and Carroll theories were in a process of having socialpartnership through it was slow however, both their developmentsexhibited a positive feeling about corporate social responsibility.CSR is handled internationally as voluntary in its businesscontribution in the social development of the community in question.The paper, therefore, identified theories for both Friedman andCarroll, summarizes them, and highlights a number of principles thatcan be applied in the workplace. Additionally, organizations werechosen having shown positions where Friedman and Carroll`s theoriescan apply. Here, the main focus lay on social responsibility with anorganization like Vedan Enterprise Corp. Ltd, for example, exhibitingtendencies to alter the societal angle of alignment by polluting anadjacent river following its operations, and failure to recyclewater.
Carroll, A. (2008). The Pyramid of Corporate :Toward the Moral Management of Organizational Stakeholders. Corporate : Readings and Cases in a Global Context,60-76.
Keinert, C. (2008). Corporate social responsibility as aninternational strategy. Heidelberg: Physica-Verlag.
Schwartz, M. & Saiia, D. (2012). Should Firms Go ???BeyondProfits???? Milton Friedman versus Broad CSR1. Business andSociety Review, 117, 1, 1-31.