Social Responsibilities of Corporations

Social Responsibilities of Business Corporations: Do Corporations have Social Responsibilities that Extends much beyond the Profit Maximizing Concept?                                                       Introduction In the premature 20th century, blood line firms were predominantly concerned with maximizing their earningss. However, in the 1970s, hearty activists began to question commerce enterprises singular objective of profit maximization. They argued that since businesses derive their existence from society, they have some obligations towards its interest and welfare. The concept of societal responsibility mainly became popular by and by the publication of Howard R. Bowens Social Responsibilities of Businessman in 1953. Bowen argued that business enterprises should consider the impact of their decisions on society. Many philosophers consider social ethics and responsibilities as science of conduct (Carter McNamara).

In the late era, since the expectations of the society have changed a lot, organizations have become more than aware of their social responsibilities. A careful analysis of arguments for and against the interlocking of organizations in social welfare is truly necessary to gibe whether an organization should implement social initiatives or should they go for exactly profit-maximizing alternatives.

Arguments against Social Responsibilities of Corporations Opposes the principle of profit maximization The jumper cable objective of a business is profit maximization. Hence, any social interest groups may not be economically fruitful for a business with respect to this motive.

Excessive costs When a business incurs excessive costs for social involvement, it passes the cost on to its customers in the form of higher prices. Society, therefore, has to bear the burden of the social involvement of business by paying higher prices for its products and services, which would otherwise, could have been procurable at lower prices.

                                                                        Weakened international balance of payments A weakened international balance of payments situation may be created by the social involvement of organizations. Since the cost of social...

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