Question

List & Discuss the arguments for and against social responsibility by business? Can you think of any additional arguments (for or against)?

Answer 1

Social responsibility refers to the responsibility and the obligation an organisation is having and is expected to perform for the bettermen and improvement of the society and the people.

The various arguments I would like to undertake for the motion are:

1. Goodwill: The main benefit that the organisation would enjoy by doing the social responsibility is the creation of the Goodwill. By doing essentially good work for the benefits of the society, a good name in the customer market, government and industry would be created which would benefit the organisation in the long run.

2. Gratitude towards society: Apart from the goodwill, an organisation works for the people and by the people. It is a self obligation of the organisation as it stands in the society to show its gratitude towards the resource that the society is providing. Thus, making contributions and donations is a good moral value an organisation is expected to perform.

The various arguments I would like to undertake against the motion are:

1. Profit Maximisation: The main economical objective for every organisation is to make profit. Profit maximisation is considered the sole objective. Thus, doing the social responsibility and spending money for the society would actually hinder the economical objective of the organisation.

2. Cost would be transferred to Customers: The cost we have talked about would be obviously transferred to the customer only. By charging either high price for goods and services, at the end customers are the ones on which the cost would fall for all the social activities.