Corporate social responsibility provides greater benefits to the Essay

Corporate social responsibility provides greater benefits to the organisation than it does to society and other stakeholders - Essay Example Banerjee approach on social responsibility can be viewed on how he has approach the concept in trying to give some of the advantages and disadvantages. Historically the social helped in development of corporation and allows devolution of power from the central government to the local citizens and help in improving the economy both politically and economically. In USA social responsibility has helped in revolution of legal structures and effective government policies to deal with social responsibility however critics have stated that social responsibility should be volunteerilism not by ensuring they are incorporated in the law and must act in the interest of the society as well (Banerjee, 2008). Corporate social responsibility is self regulating by ensuring that one complies with the community needs as does is best to better the society he or she is operating his business. A business activity should be for the general good of the employees, owners, consumers and society.CRS creates c ustomer loyalty to a brand of product hence business is able to beat competition in the market; it also leads to employment opportunities in the society. Businesses with volunteerism work records have advantage in acquiring license to operate in different areas without restriction and high taxations. Supply contracts have being awarded to those companies that have clean records of contributing to the wellbeing of the community.CRS strategies should be aimed at building capacity that will help in reduction of poverty levels in a region , promote giving that increases security and human , property rights according to international standards, reduce corruption and bribery and increase accountability and transparency. Friedman’s social responsibility model can be divided into two the business and to the beneficiaries. Where the business has obligation to respect what the shareholders aim to achieve, keep costs low, ensure they comply with the state laws and also follow the ethica l customs in the area of operation, ensure they give room for free and open market competition and not to be involved in unlawful transactions. The community also has a role to play by providing labor force, creating good working condition for the business and also be actively involved in social activities (Cosans, 2011). Arguments for social responsibility According to Buchholtz corporate social responsibility should include; production of goods and services, solving social problems, simple market transactions. Milton Friedman focused on the idea that social responsibility of business is to increase its profit. The use of available resources and should increase profit, in free and fair competition .arguments in support for social responsibility is that managers have to ensure they increase the shareholders wealth should be increased. Policy making should be left to be decided by the state, giving is encouraged and engaging in social responsibility by owners of firms. Firms should a ct in a free and accountable ways to ensure it does not affects the society breaking the law and protect the environment. Act in a way not to affect objectives of the firm and consider interest of others. Arguments against Milton Friedman is that although he argued a firm should make as much as possible he does not limit this to existing laws of production ,exploitation and property right. (Schwartz & Saiia) Strategic