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Business Social Responsibility - Essay Example
Pages 13 (3263 words)
The modern business environment has witnessed a trend of socially responsible acts undertaken by corporations, with more vigour in some whereas less in others. Every corporation is trying to get hands on this new 'competitive advantage'. What remains important in this concern is an examination of the meaning and interpretation of 'social responsibility' to businesses and a selection between any of the two paths to reach the goal, viz…
As the attitude of society concerning the commercial activities began to change with the beginning of 19th century, it led to gradual growth of capitalism and strengthening of corporate potency. The businesses were allowed to utilise fully the resources of society for the generation of uttermost profit. Thus, the corporations exploited their employees, customers and suppliers without any due considerations for social welfare. Luthans et al. (1990) illustrate that businesses assumed no specific social responsibility in that era and remained concerned with maximisation of economic gains without respite. They also elaborate that the situation aggravated when firms entered into competition with each other in the pursuit of market supremacy and wealth maximisation.
The most important factor contributing to the precipitation of corporate barbarism in the 19th century was the fact that there happened to be minimal or negligible government regulation over the corporations that led to a socially irresponsible behaviour on the part of businesses. ...