Question

Consider the following argument:

            Corporations are incapable to regulating themselves for the benefit of society. They inevitably will pursue maximizing profits—and will do so in unethical ways if they can get away with it. Thus, corporations should not be asked to meet their social responsibilities by regulating their own behavior.

            This argument is a version of

            (a)        The “invisible-hand” argument

            (b)        The “let-government-do-it” argument

            (c)        The “business-can’t-handle-it” argument

            (d)       The “corporations will impose their values on us” argument

8.         Which of the following is a response to the “invisible hand” argument?

(a)        Business ethics is irrelevant because focusing on the moral or immoral conduct of individual firms or businesspeople distracts one's attention from the systemic vices of capitalism.

(b)        The “invisible hand” argument was crafted in a time when businesses were much smaller, where any` individual business had far less social impact than corporations do today, and today are under enormous social pressure and expectations to behave ethically. The argument is therefore no longer relevant to how modern corporations should behave or be regulated.

(c)        The “invisible hand” is a natural mechanism according to which each individual, acting only to best secure his or her own rights and interests, acts in such a way that the unintended outcome of a complex social interaction is, essentially, the best outcome for society.

(d)       Businesses are complex entities—it they were to try to focus on the extraordinary complex questions of “what is best for society,” they would be hopelessly lost as the complexities and competing interests multiplied—hence they should restrict their attention just to what is in their best financial interests.

9.         Consider the following reasoning:

Companies today are too busy surviving to take on additional burdens. They can't afford to take their eyes off the ball – they must focus on core their businesses and on growth.

            (a)        This reasoning supports the “narrow view” of corporate social responsibility.

(b)        This reasoning undermines the “broad view” of corporate social responsibility.

10.       What is corporate culture, and how do corporate moral codes help promote corporate social responsibility? (A few sentences.)

Answer 1

This arguement is a version of (b) let government do it arguement because corporations will always try to maximize their profits

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(c) The “invisible hand” is a natural mechanism according to which each individual, acting only to best secure his or her own rights and interests, acts in such a way that the unintended outcome of a complex social interaction is, essentially, the best outcome for society.

Explanation- Since under the invisible hand arugement people/corporations/organsations should focus only in their own interest and benefits/profits and by doing that they will be guided by invisible hand to do good to general public.

9(b) This undermines the broader view of CSR(Corporate social responsibiity) because in today's world company's are responsible to all stakeholders including its customers because they sell their prodcuts to them and they are surviving because of them and in order to survive they have to value them/customers and how they can serve/value them is a very broaden concept and changing every day/from time to time, so in today's world what is important is they give them sustainable life, save environment, use environmentally viable techniques, give quality products and which cares their health and also give back to society in terms of financial aid to poor/orphans, etc. (if possible) but should definitely contributes towards CSR/towards society.

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it is the value, work culture and business environment/ethics that defines the corporate culture.

if any company cares about society and guides and train its employees accordingly and think it has responsibility of both profitability and social responsibility and to give its product/service which is environmentally sustainable and which do good to society without any negatve effect and also what extra company can do in order to give back in terms of social service, i.e. to give donations, reduce pollution, contamination of water, plant trees, work for orphans and donation to hosipitals, etc.