Does the corporate social responsibility go beyond just maximizing profit for in

Question

Does the corporate social responsibility go beyond just maximizing profit for investors?

Can a capitalistic market economy survive if corporations do not practice Social Responsibility? CSR includes responsibility to the community, employees, suppliers and investors. The late Nobel Prize winning economist Milton Friedman's position on this topic was that the only responsibility of corporation is to earn a profit for investors. He believed that their social responsibility was fulfilled by paying taxes, wages, etc.

But does CSR go beyond that Friedman's, position?  What will be the consequences to the market free enterprise economy without CSR.?

Explanation / Answer

Corporate social responsibility increase the obligation of profit making investors , as they are liable to return to the society by offering a part of their earnings towards societal benefits and upliftment.However not all firms follow the ethical business behavior .Capitalistic market need money to survive and to share the revenue with its stake holders and social responsibility comes as a part of ethical business behavior. Also these complex global challenges demand more ethically strong behaviour from these firms. Thus CSR is not just limited to taxes and profit sharing but to fulfil moral responsibilities to make a mark in the society , this can also be a part of brand marketing.Certain entities might still not dwell in CSR and consider making profit as a whole sole aim of the enterprises , as it is practiced by indiividual companies and businesses.

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