Business is often perceived by many as a red ocean with a high intensity of competition and the cruelty of principles rules which are necessary for businesses to survive. Meanwhile, the issue of social responsibility of business is a highly debatable one which divides business leaders and scholars in their attitudes and thereby actions. This essay aims to discuss the key approaches towards the issue of businesses' social responsibility, comparing and analyzing the most prominent and justifiable arguments.
One of the most known positions is the Milton Friedman's statement that “social responsibility of business is to increase its profits” (Friedman 1970). The claims about social responsibilities of businesses, as Friedman states, are nothing but merely the lack of rigor and analytical looseness of the business leaders (Friedman 1970). He thereby calls those businessmen who talk about social responsibility “unwitting puppets of the intellectual forces that have been undermining the basics of a free society these past decades” (Friedman 1970). His opinion, however, can be opposed to the beliefs of Homer-Dixon, who takes a strong moral and socially-aware stand on the world affairs. Homer-Dixon believes that business solutions can also be centered around the key world problems and work for the greater common good. “Addressing the underlying cases of our hardest problems usually require bi changes in the existing economic and political order” – claims he, mentioning that such big changes “run headlong into staunch opposition from powerful and entrenched interest groups like companies and unions that benefit from the status quo” (Homer-Dixon 2006).
Friedman's argument about business social responsibility was introduced in 1970. It should be admitted, though, that a lot has changed since 1970, both in the business environment and in the human mentality. The vast globalization evokes a sense of interconnection and the certainty of the consequences drawn from any actions. Therefore I definitely agree with Homer-Dixon rather than with Friedman since I strongly believe that a great power of the well-developed companies need to be directed into the socially-favorable actions which would approach the global problems and become closer to solving them. All in all, it is our world, and every single person has a responsibility to contribute into its better future by the actions the one performs.
References
Friedman, M. (1970, September 13). The social responsibility of business is to increase its profits. New York Times, pp. 32–33, 122, 124, 126.
Homer-Dixon, T. (2006). The upside of down: Catastrophe, creativity, and the renewal of civilization. Chapter 1: Tectonic stresses. Toronto: Alfred A. Knopf.)
