Question

Explain the philanthropic model of corporate social responsibility. To what degree do you think it differs from the economic model? pls type

Answer 1

Philanthropic model of corporate social responsibility states that business, like individuals, is free for contributing to social causes as a matter of philanthropy. Although it has no strict obligation to contribute to social causes, however when required it can be a good thing if they do so. It has also no ethical obligations to serve wider social goods. Furthermore must be encouraged for contributing to society in an approaches that go beyond the narrow obligations of law and economics.

On contrary, the economic model states that sole duty of business’ is to fulfill the economic functions that it were created to serve. Thus the social responsibility of managers in business is to pursue profit within the rules of the law. The profit will be directly measured on how well a business is meeting the expectations of society, thus business should successfully and efficiently producing the goods and services which society demands. The profit must be measure in terms of the optimal allocation of resources. Economic model denies that business has any social responsibilities beyond the legal and economic and ends for which it was designed