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8 Feb 2020

"A business firm is more than an economic institution because it is an organ of society and it has some responsibilities towards society as a whole". In light of the statement, explain the social responsibilities of business towards consumers and the government.

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Reid Wolff
Reid WolffLv2
8 Feb 2020

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Related questions

Give an orginal concise but thorough answer to the following questions.

Chapter 1:

a. Define social responsibility. How does this view of the role of business differ from your previous perceptions? How is it consistent with your attitudes and beliefs about business?

b. If a company is named to one of the “best in social responsibility” lists, what positive effects can it potentially reap? What are the possible costs or negative outcomes that may be associated with being named to one of these lists?

c. What historical trends have affected the social responsibilities of business? In light of current trends and issues, what changes in these responsibilities and expectations do you predict over the next five years?

Since our government has granted certain legal advantages to corporations, some argue that corporations owe society a certain level of responsibility. There are opposing views on this issue.

For example, a quote by Milton Friedman, Nobel laureate in economics, states "The one and only social responsibility of business is to increase its profits."

On the other hand, one of the largest corporations, the Dayton-Hudson Corporation, states in its corporate constitution "The business of business is serving society, not just making money."

In your opinion, what level of corporate social responsibility should be required and what are some examples of CSR that you've read about in the current press?

One of the opportunity costs borne by anyone who starts a new business, whether it Akio Morita of Sony or our imaginary Ralph and Andrea Martin, is that of exchanging the secure life of employees of large firms for the risky life of entrepreneurs. Would you be willing to make that transition if you expected to earn no more than your previous salaries plus a “normal profit” on the capital you invested in the firm? Would you require some pure economic profit as compensation for the risks and responsibilities of being an entrepreneur? Or would the freedom of running your own business be so attractive you would do it even if your total income were less than you could earn working for someone else? Discuss.

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