'If a business wants to maximise profit, it cannot be concerned with Essay

'If a business wants to maximise profit, it cannot be concerned with corporate social responsibility'. Critically discuss th - Essay Example When a business focuses on maximizing profit, they are ignoring their responsibility towards society. Should a business worry about the importance of CSR or that of maximizing profit (Davis 1960)? The paper discusses the fact that it is a business’ social responsibility to maximize profit by ignoring corporate social responsibility. Argument 1 It is the responsibility of the corporate executive to generate as much profit for the business while complying with the fundamental societal rules. CSR has the policies that ensure a business conforms to these rules. Throughout the decades, the theory of Corporate Social Responsibility (CSR) continues to develop in significance and importance. It has been the subject of considerable debate, commentary, theory building and research. Regardless of the continuing discussions as to what it means and what it entails, it has enhanced and evolved in both practitioner communities and academic globally (Smith 2003). The notion that the responsib ilities of business enterprises to society go past that of profit making for the shareholders has been here for many years. The phenomenon developed after the WW II and failed to take any direction in terms of significance until the 1960s and afterwards (Friedman 1970). So long as the government keeps the laws, corporations will continue to carry out their practices as the law permits them to maximize profit, so in other words, CSR is not the complete responsibility of corporations, but that of the governments. Edwards Freeman created the theory of the  stakeholder, which deals with a person’s values and morals in organization management (Friedman 1970). The  theory of the stockholder states that stockholders increase resources to corporate managers who operate as agents in developing their interests. The main purpose of any organization is to maximize profit. The problem is whether these organizations should have any responsibilities towards society. The function of a co rporation is vital when attempting to comprehend what builds a ‘good’ corporation (Smith 2003). Since the beginning of debates over CSR, critics and supporters have been expressive about the arguments for and against the notion of CSR. There has been expansive discussion about these arguments. Embedded in the discussions for and against the theory of CSR are points made previously, possibly on a gradual basis, supporting the concept. The argument against CSR concept classically  begins with the economic case expressed by the late Friedman (1970). According to Milton Friedman, the only duty of a business is to ensure maximum profit, and not worry about social responsibility. As a libertarian, he believes there is no need to get in the way of another person’s liberty. Milton supports free market and claims most developed capitalists states are, to some degree, welfares. According to him, the main social responsibility of a business is to ensure maximum profit, as long as it follows the rules of society. In short, a corporation should carry out its operations and take part in free and open competition exclusive of any fraud or deception. It is not right for businesses to have any form of social responsibility because most business owners become so in order to make profits. The issue of CSR also asks the question, who is responsible in ensuring the corporation follows CSR policies? Is it any person with power or the owner? Does an individual, as opposed to workers combined have moral duties (Smith 2003)? These are the type of