Analyze the classical and socio economic theories of corporate social responsibility.
Which do you choose to accept and why?
For some time now, corporate social responsibility has become a must, Public Institutions, the business world, employers, civil society, and organizations, seem to be at one in the conviction that “corporate social responsibility” is an essential element of present and future social policies, in all the continents and all the sectors. In this moment when the global market economy, itself are going through a serial internal crisis, corporate social responsibility is the answer a many problems such as: fraudulent bankruptcies, questionable purchases, cheatings in the accounts, very high manager salaries, disrespect for basic values, deregulations or disconnection between financial and economic activities. Instead of international laws.
This paper analyzes the classical and socio economic theories of corporate social responsibility.
The main representative of the classical view is Milton Friedman economist and Nobel Prize who maintains that corporate social responsibility (CSR) is based on reduce profits , reduce wages and salaries, increase prices and distort the market for investment capital, Those who adopt the classical view of the firm believe that the only social responsibilities to be adopted by business are the provision of employment and payments of taxes (Moir, 2001) . This theory is most famously taken to the extremes in the recent years for maximizing shareholder value and reflected in the views of Milton Friedman (1962, p 133) “Few trends would so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for th ...