In understanding the subject of social responsibility in business, there are many varying views and theories presented. The argument, at the extremes, is one that is purely economic in nature and the other that requires corporation’s responsibility to society. Today society demands social responsiveness of businesses in the marketplace. A businesses’ failure to act socially or ethically responsible, in some cases, could form the foundation for its own peril. My paper attempts to define social responsibility, discuss views and theories, and provide case examples where businesses respond to situations in the global marketplace. The argument that corporation’s responsibility to shareholders to maximize profits as a sole objective is no longer acceptable by society. The purely economic view of the issue will not suffice. Businesses will always seek to maximize profits, but companies are increasingly aware that organizational values and social responsiveness play to the very heart of their goals in the pursuit of profits.
“What does it mean for a corporation to be socially responsible? The concept is described by many terms. It has been called, “profit making only”, “going beyond profit making”, “voluntary activities”, “concern for the broader social system”, and “social responsiveness”. “Most focused attention is on the two extremes. On one side, there is the classical-or purely economic view, and on the other side, there is the socioeconomic position” (Robbins/Coulter 100). First, we will explore four theories of social responsibility. The four legal theories surrounding the issue are maximizing profits, moral minimum, stakeholder interest, and corporate citizenship.
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