Author Question: List and discuss three arguments in favor of business social responsibility and five arguments ... (Read 193 times)

jho37 · **on:** Jul 7, 2018

List and discuss three arguments in favor of business social responsibility and five arguments against it.

What will be an ideal response?

Question 2

The Global Contract is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption.

Indicate whether the statement is true or false.

mammy1697 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Answer:
Arguments in favor of business social responsibility include:
a. Public expectations - Public opinion now supports businesses pursuing economic and social goals.
b. Long-run profits - Socially responsible companies tend to have more secure long-run profits.
c. Ethical obligation - Businesses should be socially responsible because responsible actions are the right thing to do.
d. Public image - Businesses can create a favorable public image by pursuing social goals.
e. Better environment - Business involvement can help solve difficult social problems.
f. Discouragement of further governmental regulation - By becoming socially responsible, businesses can expect less government regulation.
g. Balance of responsibility and power - Businesses have a lot of power and an equally large amount of responsibility is needed to balance against that power.
h. Stockholder interests - Social responsibility will improve a business's stock price in the long run.
i. Possession of resources - Businesses have the resources to support public and charitable projects that need assistance.
j. Superiority of prevention over cures - Businesses should address social problems before they become serious and costly to correct.
Arguments against business social responsibility include:
a. Violation of profit maximization - Business is being socially responsible only when it pursues its economic interests.
b. Dilution of purpose - Pursuing social goals dilutes business's primary purpose of achieving economic productivity.
c. Costs - Many social responsibility actions do not cover their costs and someone must pay those costs.
d. Too much power - Businesses have a lot of power already and if they pursue social goals they will have even more power.
e. Lack of skills - Business leaders lack the necessary skills to address social issues.
f. Lack of accountability - There are no direct lines of accountability for social actions.

Answer to Question 2

Answer: FALSE