Convenience

Arguments Against Social Responsibility
Some people, however, including the
famous economist Milton Friedman, argue that widening the interpretation of social
responsibility will undermine the U.S. economy by detracting from the basic mission of
1.
Business creates problems and
should therefore help solve them.
2.
Corporations are citizens in our
society.
3.
Business often has the resources
necessary to solve problems.
4.
Business is a partner in our society,
along with the government and
the general population.
Social Responsibility
1.
The purpose of business in U.S.
society is to generate profit
for owners.
2.
Involvement in social programs
gives business too much power.
3.
There is potential for conflicts
of interest.
4.
Business lacks the expertise to 
manage social programs.
Arguments for Social Responsibility
Arguments against Social Responsibility
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F I G U R E 2 . 2
Arguments for and Against Social Responsibility
Although many people want everyone to see social responsibility as a desirable aim, in fact, several strong
arguments can be advanced both for and against social responsibility. Hence, organizations and their
managers should carefully assess their own values, beliefs, and priorities when deciding which stance and
approach to take regarding social responsibility.
social responsibility
The set of obligations
that an organization
has to protect and
enhance the societal
context in which it
functions
Chapter 2:
The Environments of Organizations and Managers
4 7
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business: to earn profits for owners. For example, money that Chevron or General
Electric contributes to social causes or charities is money that could otherwise be distrib-
uted to owners in the form of dividends. Shareholders of Ben & Jerry’s Homemade
Holdings once expressed outrage when the firm refused to accept a lucrative exporting
deal to Japan simply because the Japanese distributor did not have a strong social
agenda.
19
Another objection to increasing the social responsibility of businesses reflects the
position that corporations already wield enormous power and that involvement in social
programs gives them even more power. Still another argument against social responsibil-
ity focuses on the potential for conflicts of interest. Suppose, for example, that one
manager is in charge of deciding which local social program or charity will receive a
large grant from her business. The local civic opera company (a not-for-profit organiza-
tion that relies on contributions for its existence) might offer her front-row tickets for
the upcoming season in exchange for her support. If opera is her favorite form of
music, she may be tempted to direct the money toward the local company when it
might be needed more in other areas.
20
Finally, critics argue that organizations lack the expertise to understand how to assess
and make decisions about worthy social programs. How can a company truly know, they
ask, which cause or program is most deserving of its support or how money might best
be spent?