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Social Responsibility - Profit and Ethics
Finance & Accounting
Pages 4 (1004 words)
SOCIAL RESPONSIBILITY-PROFIT AND ETHICS (Author’s name) (Institutional Affiliation) Abstract Businesses engaged in the service of society have often been often blamed for pursuing profit making at the expense of social responsibility. To this end, debate has always been centered on whether profit making are mutually compatible with ethical responsibility…
To this end, the notion of resolving business and social responsibility has been regarded as impossible. This notion has been fuelled by personalities such as Friedman who argue that the social responsibility of business lies in the maximization of profits so long as it is within the precincts of the rules of engagement (Friedman, 1970). To this end, Friedman argues that the decision concerning the social responsibility of business should be validated based on agreement with all the affected parties. In this case, Freidman asserts that business managers have an ethical obligation to act in the best interest of their employees and stockholders (Friedman, 1970). Consequently, if businesses managers conduct socially responsible policies, they are acting against the stakeholders’ best interest by forcing them into financing a foreign project. To this effect, it is true to some extent that the mandate of most for-profit companies is to generate maximum profit for their stakeholders. However, this notion is equally a stereotype that implies ethics and profits are untenable in any business set up. On the contrary, companies that solely pursue profits at the expense of profits, eventually collapse in the long term. ...
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