‘the Only Role of Business Is the Increase of Profits’. Discuss. Essay

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According to Business Directory, it defines that corporate social responsibility as, “A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on the employed resources.” But such a concept has been much disputed since at least the 1970’s. There are two schools of thought in corporate social responsibility name as’ narrow’ view and ‘broad’ view. According to the American economist- Milton Friedman (1970), ‘There is one and only one social responsibility of business- to use its resources and engage in activities designed to increase its profit so long as it stays will the rules of the game, which is to say, engages in open and free competition, without deception or fraud.’ So corporations should remain socially independent and all conflicts must be solved through the individual responsibility concept. On the contrary the “broader” view states that corporations have social obligations as all existing participants of market, persons and entities are tied together and are mutually dependent. So corporations cannot ignore some serious events or problems, which take place, and must help society, as profit is not their single purpose.
In my point of view, I think that only role of business is the increase of profit. In other words, I support the ‘narrow’ view more than the ‘broad view’.   I think that business naturally has a main purpose to produce a profit. The owners (shareholders) of a corporate organisation hire managers for the sole purpose of increasing profits of the business so that the owners can realise a reasonable return on their investment.   In this regard, since corporate contribution to the alleviation of society’s problems reduces the profits and consequently the return on investment of shareholders, managers...

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