Discuss the view that businesses exist to make profits and that we Essay

Discuss the view that businesses exist to make profits and that we should not expect them to take on social responsibilities.( SOCIAL RESPONSIBILITY OF BUSINESS - Essay Example According to Waddock, Corporate management can not avoid corporate social responsibility, as it is the basis for the formation of Corporate Citizenship / Waddock, 2005/ The Committee for Economic Development suggested one more definition of CSR, which is based on â€Å"three concentric circles† approach. In this approach the inner circle is composed of primary economic functions like economic development, company production and jobs offered. The next, intermediate, circle states the necessity for awareness of modification of social values in the process of goods production. Finally the third, outer, circle includes new and therefore still vague responsibilities, which are important for the company seeking to improve social environment / Committee of Economic Development, 1971/. However, the attitude to corporate social responsibility is not such simple. Some experts are quite inspired by the concern of the companies and their desire to make contributions to the society. Their opponents consider that the primary task of any business is to make money not to make the world better. It is not new that companies benefit from being socially responsible. It should be noticed that different companies experience different kinds and different levels of benefits from their CSR policies. This depends greatly on the nature of the business itself, on the country, where the company operates. Besides, it is quite difficult to measure the extend of the benefit from CSR. The question of the benefit to the companies from being socially responsible was one of the primary ones since the introduction of the practice of social responsibility policy. There exist a number of literature investigations focusing on the influence of the corporate social responsibility policy on the performance of the company of the market. Among the best-known