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Corporate Social Responsibility

The benefits and disadvantages of co-operate social responsibility

By Mahamed Abdi

Studying for Business SM1007
Student Number: 0747672
There is an ongoing debate over business roles in society which revolves around two opposing arguments.  On the one hand, it is argued that CSR issues are not suitable to corporate agenda. This point of view maintains that corporations and society pursue different goals, and that the aims of one can only be achieved at the expense of the other. Companies are profit driven, and the sole purpose of business is to generate shareholder value.  On the other hand, CSR proposes that companies which participate in activities that positively contribute to society will see the benefits to their reputation and subsequently their bottom line. This essay will evaluate the supporting and opposing arguments surrounding the Corporate Social Responsibility (CSR) debate. It will define CSR and explore the positive aspects of adopting it in an organisation, as endorsed by CSR advocates such as Dick Hubbard and based on research from various sources and business case studies such as McDonalds and Timberland Co. It will cover the positive arguments for CSR such as its ability to enhance a company's reputation and brand name, to expose market opportunities and to attract and maintain valuable staff. The second part of this essay shall voice the CSR-critic's view, such as the views of economist Milton Friedman of America, David Henderson of Britain and Roger Kerr of the New Zealand Business Round Table. Arguments against are that CSR increases costs, mishandles shareholder's money, is difficult to measure and account for. Thirdly, It will evaluate the discussion and draw an informed opinion as to whether it is a sensible business strategy. The conclusion will summarise my observations.

The definition of Corporate Social Responsibility (CSR) is described [Lockwood, 2004] by the World Business Council for sustainable Development as the...

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