The Social Responsibility Of Business Managers Is Simply To

The Social Responsibility Of Business Managers Is Simply To Pursue Pro

The social responsibility of business managers is simply to pursue profit within the law. How does the economic model of CSR justify this statement? Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Hartman, L., DesJardins, J., & MacDonald, C. (2014). 1. Business ethics: decision making for personal integrity and social responsibility (3rd ed., pp. ). New York: McGraw-Hill. No Wiki, Dictionary.com or Plagiarism

Paper For Above instruction

The economic model of Corporate Social Responsibility (CSR), often associated with the classical economist Milton Friedman, asserts that the primary responsibility of business managers is to maximize shareholder value by pursuing profits within the boundaries of the law. This perspective emphasizes that a business's fundamental obligation is economic in nature — to produce goods and services efficiently, generate profit, and provide returns to investors. According to Hartman, DesJardins, and MacDonald (2014), this view upholds that social responsibilities beyond profit generation are outside the scope of managerial duties and can encroach upon the role of government and society at large.

The justification of this stance by the economic model hinges on the belief that financial responsibility ensures economic efficiency and growth. Profits serve as signals that resources are allocated effectively, as they incentivize innovation, productivity, and competitiveness within strict legal and ethical limits. Providing profits within legal boundaries ensures that businesses contribute to societal wealth without overstepping moral or legal boundaries, maintaining social order (Hartman et al., 2014). Moreover, adherence to the law in pursuit of profit aligns with the notion that businesses should focus on what they do best—productive activities—to avoid unnecessary social costs and disruptions.

This model assumes that market forces, when operating within legal constraints, naturally promote societal welfare. By focusing on profit maximization within the law, managers avoid moral detours and prioritize economic duties over broader social obligations, which are presumed to be fulfilled by legislators and regulators. Consequently, the economic model views CSR as a means for firms to operate ethically within legal parameters, with profit being the ultimate goal, justified by the belief that economic growth benefits society as a whole (Hartman et al., 2014).

In conclusion, the economic model of CSR rationalizes that business managers should pursue profit within legal confines because this aligns with the core purpose of business operations—maximizing shareholder value—while promoting overall economic efficiency and societal well-being through lawful means.

References

  • Hartman, L., DesJardins, J., & MacDonald, C. (2014). Business ethics: decision making for personal integrity and social responsibility (3rd ed.). McGraw-Hill Education.
  • Friedman, M. (1970). The social responsibility of business is to increase its profits. The New York Times Magazine.
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  • Crane, A., Matten, D., & Moon, J. (2008). Corporations and citizenship. Cambridge University Press.

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