Answer to Question 1
Answer: Not all companies have embraced the concept of corporate social responsibility. Some have challenged the concept that doing well is doing good (DWDG). They believe that although appealing to some, DWDG is also profoundly wrong. Milton Friedman taught at the University of Chicago for more than three decades and was a recipient of the Nobel Memorial Prize in Economic Sciences. In his book Capitalism and Freedom, he argued that the only social responsibility of business was to increase its profits. According to Friedman, as a firm creates wealth for its shareholders, society as a whole will also be benefited. Friedman disciples continue to condemn CSR as a hotchpotch of value-destroying nonsense.
Some argue that publicly endorsing a culture of ethics and social responsibility is merely a public relations campaign. Long before the oil spill in 2010, BP marketed itself as a producer of alternative energies. Many believe that BP would have been much better off if it had spent more time and effort in training its employees on its oil drilling platforms, establishing stronger safety protocols, and waiting until they were safe to operate.
Brighter Planet, a sustainability technology company, discovered in a recent survey that although more firms are engaging in green activities, the effectiveness of these efforts has declined. Some believe that the problem with CSR is that it consists of a universal set of guidelines such as the triple bottom line (society, environment, and economy). To be socially responsible, each firm has to follow the same guidelines instead of what would be the most appropriate strategy for each firm.
Answer to Question 2
Answer: TRUE
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