Monday, August 26, 2019

Social responsibility of business Essay Example | Topics and Well Written Essays - 500 words

Social responsibility of business - Essay Example Requiring businesses to intervene in social issues is equivalent to asking for more than what businesses owe both government and the society (Sarkar 2005, p.25). Increasing profits is the right thing for businesses to do because engaging in social activities would give them unfairly excessive powers. These powers would cause businesses to control the lives of people through political action, influence on the government and domination using business values. Businesses know how to make profits well but are incompetent pertaining social issues. This incompetence unfolds threefold starting with businesses’ lack of the technical skills requisite to handle social issues. Businesses lack knowledge that is as good as that of the government about what is good for the society and incompetent investments into social issues only wastes stakeholders’ funds (Sarkar 2005, p.26). Overall, the nature and character of free economy requires the function of business to be economic and not social and going against this is tantamount to causing confusion. On the other hand, Friedman could as well have been wrong in light of a number of things. His statement ignored that social activities could have profitable gains in the end. As such, Friedman’s statement focused on the short-term costs and downplayed the long-term benefits that could accrue from businesses engaging social responsibility. Concentrating on making profit only denies businesses a chance to build favorable public image. Businesses need a favorable public image in order to get employees, customers and access to money markets. Businesses should have a conscience even when concentrating on making profit because ethical actions are necessary if a business is to keep its customers and not have them boycotting its good and services (Sarkar 2005, p.27). The possible risks that a socially responsible business dares will make the stock market to raise its stock

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