This report is based on focusing on the topic “The Social Responsibility of Business in order to increase their Profits.” This term was firstly coined by Milton Friedman in 1970. The discussions based on this topic would be notable for the analytical looseness. Based on the views of the author, it could be discusses that the managers have a high form of moral responsibility to act in a better way based on the interest of the shareholders (Tai and Chuang 2014). According to the author, the sole motivation of the manager would be to engage in long-term increase of the wealth of the shareholder. The author also puts focus on the responsibility of the manager base on the evaluation of stakeholders and discuss the issue faced during such evaluation. Based on the different kinds of social responsibility for businesses, it could be discussed that these businesses should be able to make use of their resources (Epstein 2018). They should also be able to engage in different kinds of activities, which would be designed for increasing the profits. The following discussion is focussed on the importance of Corporate Social Responsibility, the process of implementation and the accompanied real-life examples of companies.
Corporate Social Responsibility (CSR) could be defined as the ways in which different companies would be able to manage the different processes of the business. This would be highly helpful in producing an overall impact on the society. CSR would be able to cover the aspect of sustainability, social ethical impacts and the ways in which the core business would be able to correctly function together (Schultz, Castelló and Morsing 2013). The CSR could also be defined as a form of business approach that would be able to contribute towards the sustainable development of the organization. This would be able to deliver based on social, economic and environmental benefits based on the stakeholders.
CSR could also be defined as a concept that would be supported with many forms of practices and definitions. The way of understanding, adopting and implementation of CSR practices would vary from one company to another. Moreover, CSR could be defined as a broad concept that would be able to address many and various kinds of topics (Höllerer et al. 2013). These topics would include corporate governance, human rights, environmental effects, health and safety, efficient working conditions and various contribution towards economic development.
Based on the consideration of CSR at the level of organisations, the CSR could be considered as a form of organisational policy. The CSR should be able to align and thus integrated within the model of business in order to achieve successful measures within the business (Khan, Muttakin and Siddiqui 2013). Based on different kinds of ethical perspective, it could be considered that some businesses and organisations should be able to adopt the policies and practices of CSR due to the ethical beliefs based on senior management.
It would be highly important that the concerned company would be able to operate in such a way that would be able to demonstrate the social responsibility of the corporate sector. Though this is not a legal requirement but it could be defined as a good practice for accounting on the social and environmental issues (Saeidi et al. 2015). Some of the most important benefits of corporate social responsibility are:
Starbucks focuses on creation of an experience, which would be remembered by the customers. The company has evolved for taking advantage of the emerging platforms based on customer engagement. The discussion is based in ‘for’ of the statement. The company also supports a website, where customers would be able to leave their ideas for the betterment of the company and improvement of products (Time 2018). This would improve the level of engagement based within the community and also enhance the social responsibility of the business. Based on the commitment of the organisation towards the use of ethical practices, it would be useful to maintain the recognition of the brand (Tschopp and Nastanski 2014). High quality of performance of the brand would be helpful for recognising the brand based on the feedback of the customers.
Starbucks has differentiated itself from most of the other brands based on a unique and unconventional method of advertising their products. The company would rarely advertise their products on newspapers, magazines or billboards. Few of the television advertisements would generally put focus on the offerings of specific products. These would mostly highlight the way of preparing the products and also for promotion campaigns (Time 2018). The company mainly puts focus on the development and building of brand image based on word-of-mouth channels and also by being visible in the life of the consumer. The principle of building of brand image and differentiating themselves is clearly reflected within the promotion of the brand and their adopted strategies of communication.
With the help of following such kind of principles, it would be helpful that the customers associated with the organization would remain contented and stay for a longer time within the organization when they would feel that the organization would be thinking about their concerns. The company has 13 million Starbucks Reward members. Besides the success of the company in using useful technologies such as coupon downloads, QR codes and virtual gift cards, they have also leveraged AI for permitting customers to place their orders with a messaging interface or a simple voice command (Time 2018). This form of brand differentiation has led to an increase in customer engagement.
The organisations that are able to implement a fully structured and thorough planning with the help of CSR would be able to demonstrate a trustful form of leadership within the expanding world of business. The use of corporate social responsibility would imply a certain process of implementation. This would include:
The statement proposed by Milton Friedman could be approached based on the basis of ‘for’ or ‘against’ the conclusion based on the statement.
Based on the conclusions drawn from the statement, it could be discussed that the pursuit of social responsibility within a free-enterprise system would be able to represent an unadulterated form of socialism. The directors of a particular organisation have a particular kind of responsibility to perform different kinds of acts that would be based on the interest of the stakeholders (Asif et al. 2013). Based on the approach of the stakeholders, it could be discussed that the shareholders within an organization would serve as the economic engine within the organization. The primary goal of different organization would be to maximize the profits. They would also return a portion of the profits to the respective shareholders. The views regarding the statement based on Friedman is that there would be only one form of social responsibility for the approach to the business (Tai and Chuang 2014). This would be based on the using of resources and engaging within different kinds of activities, which would be designed in order to increase the profits of the business.
On the other hand, the view against the statement would be that a company would not have any form of social responsibility to the society or public. The only concern of the company would be to increase the profits for the organisation. They would also increase the profits for the shareholders in relation to the organization. The shareholders should be able to decide about the ways in which they would be able to engage with the shareholders and would also provide benefits for the society.
CSR could be thus defined as an idea that a company would be socially involved with the environment of the organisation. Some of the real-life examples of social responsibility within businesses are:
Conclusion
Based on the conclusions drawn from the research, it could be concluded that social responsibility could be defined as an idea for different businesses. Based on the Carroll’s CSR Pyramid Theory, there could be four kinds of theories, which would be responsible for the success of an organisation. These would also include the engagement of stakeholders and shareholders who would be responsible to abide by the four responsibilities of Carroll’s Pyramid Theory that include the economic, legal, philanthropic and ethical. Evaluation of the above discussion based on the theory, it could be concluded that the impacts of CSR within an organisation would emphasize on the profits of the organisation. The organisations would be responsible to abide by the laws, act morally and ethically. They would also have the responsibility to return something good for the society.
References
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