Narrow View of Corporate Responsibility
The following report discuss the narrow view of the Corporate Social Responsibility. The business organization operates in the society and it is the responsibility of the business to give back some input to the society and this concept of called the Corporate social responsibility of the organization. In todays dynamic world, every business organization undertakes the CSR (Corporate Social Responsibility) activities to maintain a goodwill or good reputation of the business of the organization in the eyes of its stakeholders so that it can effectively set up long term sustainable goals for its business operations. Today, most of the business organizations establish their yearly reports regarding the corporate social responsibility and update them according to the changing scenario.
Corporate Social Responsibility is a term that is also used as sustainable business, corporate citizenship, responsible business etc. It is a type of international private business. It is also considered as the corporate ethic strategy that is the internal policy of the organization. The corporate social responsibility of the company is considered as the organizational level strategy of the business organization. It is integrated into the business model of the organization. The concept of CSR (Corporate Social Responsibility is divided into two categories that is narrow and the broad view of the corporate social responsibility. The following report would outline the discussions on the narrow view of the Corporate Social Responsibility (Moir, 2019).
Narrow View of the CSR (Corporate Social Responsibility)
Under the narrow view of the Corporate Social Responsibility, the main and the sole objective of the business organizations is to maximize the profits of the business organizations, whereas, according to the broader view of the Corporate social responsibility, the objectives of the company that is profit maximization is only possible when the businesses undertake their social responsibility and indulge them into the business operations of the organization.
According the views of the different authors, the supporters of the narrow view are decreasing at continuous rate as there is an increased focus of the individuals on the CSR activities that are attracting the stakeholders of the organization. According to the narrow view of the Corporate Social responsibility, the business organizations have only one responsibility towards the society or the stakeholders of the organization that is to provide good quality of goods and services to the society that are fit for their consumption and in exchange can earn profits for the company. In this way the business organizations are able to generate maximum profits for the shareholders which is the sole and major aim of the organization. Various Economist follow the narrow view of the corporate social responsibility such as Milton Friedman, the Nobel Prize Winner. According to Milton Friedman, the main objective of the business organization is to undertake the business activities in an effective and efficient manner that is
helpful for the organization to satisfy the needs and the interests of their stakeholders and this interest is helpful to coincides with the maximization of the profits in the organization.
Supporters of the Narrow view of the Corporate Social Responsibility
There are various supporters of the Narrow view of the corporate social responsibility, for example, the economist Milton Friedman wrote in this book Capitalism and Freedom, the main roles or the objectives of the business organizations that are followed by corporates are-
- The sole responsibility of the socially responsible business organization is to make the profits according to the rules of the game.
- In addition to this, the economist Milton Friedman also argues that the private business organizations must not be forced to undertake the public responsibilities of the society that majorly belongs to the government organizations.
In addition to this, the supporters of the narrow view of the corporate social responsibility argues that the responsibility of the managers of the business organizations that is to maximize the wealth of the shareholders is over and above all other obligations of the business organization. Other areas of social responsibility are secondary according to the supporters of the narrow view of the stakeholders (Moir, 2019).
So, in the nutshell, it can be concluded that the corporate social responsibility of very important for any business organization to undertake as it is the medium through which the business organizations make their reputation in the eyes of their stakeholders and rise above their competitors. This means that corporate social responsibility is very essential for any business organization to operate for long run. But the views of the corporate social responsivity are different according to the arguments of eth different authors. According to different authors the concept of eth corporate social responsibility is described in the two major parts that is narrow view of the corporate social responsibility and the broader view of the corporate social responsibility. The report above discuss the narrow view of the corporate social responsibility and the arguments by various authors.
Moir, L. (2019). What do we mean by corporate social responsibility?. Corporate Governance: The international journal of business in society,, [online] 1(2), pp.16-22. Available at: https://www.emeraldinsight.com/doi/abs/10.1108/EUM0000000005486 [Accessed 14 Feb. 2019].