Corporate Social Responsibility Of A Corporation - 1967 Words

Corporate Social Responsibility A corporation ready to take responsibility for any impact of its decisions or actions of its stakeholders is one definition of corporate social responsibility. Incorporations corporate executives/ managers act in the interest of the people affected and involved within organizations known as stockholders. Many have argued thoughts on the topic of social responsibility, determining different groups to be served or to serve the corporation they exist, in this paper three articles will be examined. Milton Friedman will examine the stockholder model while R.Edward Freeman will concentrate on the stakeholder model and Joseph Heath on the market failures model. I will argue Joseph Heath’s market failures model†¦show more content†¦65). This reference states that the main goal of the stakeholder increase in profits and the agents are the ones that need to make this happen. Even if the agent does not hold earning profit as a main goal in being socially responsible, they mus t do it anyways. Agents may have a different view of what they think is socially responsible however they may not put their own social responsibilities towards any actions towards the firm. This is because as Friedman states, â€Å"If these are â€Å"social responsibilities,† they are the social responsibilities of individuals, not of business† (pg. 66). This means acting with individuals own responsibilities in mind towards the firm, the agent is no longer an agent as they are not acting in the best interest of the firm and when this occurs they serve themselves turning into a principal. By doing this the agents are taking away the property rights of the principals. The agent is then being selfish as they are not acting in favour of the employers, principal’s, best interest. Friedman also states, â€Å"The executive is exercising a distinct â€Å"social responsibility,† rather than serving as an agent of the stockholders, only if he spends the money in a different way than they would have spent it† (pg. 66). Everything an executive is to do is to be done how the stockholders would like it completed. However I do not agree with these arguments stated