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  • Friedman's Traditional View: 04 Activity 2 ARG

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    Ronalyka Rivera Binas
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    Friedman argued that businesses should only concern themselves with profitability and not social ends. Pursuing profit benefits society through investment, job creation, competitive products, and tax revenue. However, this view is criticized as counter to stakeholder and corporate social responsibility theories. Carroll's four responsibilities of business posit that companies have economic, legal, ethical, and discretionary responsibilities to society. While social responsibility can increase costs and competitiveness, it ensures businesses do no harm and consider society in their operations. The document recommends Carroll's approach for organizational success by meeting social responsibilities after ensuring profit and legal compliance.

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    04 Activity 2 ARG

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    Friedman argued that businesses should only concern themselves with profitability and not social ends. Pursuing profit benefits society through investment, job creation, competitive products, and tax revenue. However, this view is criticized as counter to stakeholder and corporate social responsibility theories. Carroll's four responsibilities of business posit that companies have economic, legal, ethical, and discretionary responsibilities to society. While social responsibility can increase costs and competitiveness, it ensures businesses do no harm and consider society in their operations. The document recommends Carroll's approach for organizational success by meeting social responsibilities after ensuring profit and legal compliance.

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    2K views2 pages

    Friedman's Traditional View: 04 Activity 2 ARG

    Uploaded by

    Ronalyka Rivera Binas
    Friedman argued that businesses should only concern themselves with profitability and not social ends. Pursuing profit benefits society through investment, job creation, competitive products, and tax revenue. However, this view is criticized as counter to stakeholder and corporate social responsibility theories. Carroll's four responsibilities of business posit that companies have economic, legal, ethical, and discretionary responsibilities to society. While social responsibility can increase costs and competitiveness, it ensures businesses do no harm and consider society in their operations. The document recommends Carroll's approach for organizational success by meeting social responsibilities after ensuring profit and legal compliance.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    04 Activity 2 ARG

    Friedman’s Traditional view


    Plus (Advantage)
    Friedman specifically argued that business organizations should not concern themselves with
    the promotion of desirable social ends. He described business owners who talked about “social
    conscience” as “unwitting puppets of the intellectual forces that have been undermining the
    basis of a free society these past decades.”
    The profitability of a business promotes an environment conducive for investment that, in turn,
    fosters capitalism and the creation of free market enterprises. In addition, a thriving business
    would result in the introduction of competitive products and the creation of jobs, as well as in
    the payment of taxes to the government. Hence, Friedman explained that the profitability and
    success of a business would eventually benefit the society.
    Minus (Disadvantages)
    The corporate social responsibility theory of Milton Friedman is a counterargument to the
    stakeholder theory or socioeconomic model. It also forms one of the major criticisms against
    modern corporate social responsibility.
    Interesting
    Social responsibility means that individuals and companies have a duty to act in the best
    interests of their environment and society as a whole. The crux of this theory is to enact policies
    that promote an ethical balance between the dual mandates of striving for profitability and
    benefiting society as a whole.
    Carroll’s 4 Responsibilities of Business
    Plus (Advantage)
    Social responsibility is the duty of business to do no harm to society. In other words, in their
    daily operations, businesses should be concerned about the welfare of society and mindful of
    how its actions could affect society as a whole. We know that social responsibility doesn’t
    always happen, despite the seemingly best efforts of a company.
    Minus (Disadvantages)
     Costs. The factor of costs impacts an organization in two ways when it embeds the system
    of CSR into its operations.
     Clashing of business objectives.
     Interests of the shareholders.
     Competitive Disadvantage.
     Impact upon the reputation of the Corporation.
    Interesting

    Carroll's four part definition of CSR was originally stated as follows: “Corporate social
    responsibility encompasses the economic, legal, ethical, and discretionary (philanthropic)
    expectations that society has of organizations at a given point in time” (Carroll 1979, 1991).
    My Decision

    The most effective approach that I recommended to achieve organizational success is the Carroll’s 4
    responsibilities of business because this approach was focusing on how and why organizations should
    meet their social responsibilities. CSR is built on the foundation of profit – profit must come first. Then
    comes the need for a business to ensure it complies with all laws & regulations.

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