Arguments Against Corporate Social Responsibility
Moreover, employees have the comfort that there are no unethical dealings going on in their watch while customers are always at ease when purchasing products from a business they have confidence in its source of labor and raw materials as ethical and responsible. Therefore, a business should operate in ways that fulfill and meet the expectations and needs of the society. Companies should also engage in CSR as a way of discouraging further government regulation and involvement as well as avert public criticism. This is usually a defense mechanisms used by companies to avoid government action against irresponsible …show more content…
Moreover, companies that involve in anything other than profit maximization are distorting the resource allocation and sabotaging the mechanisms of the market. This makes it contrary to the fundamental functions of a business to involve itself in social matters since a business is an economic entity rather than a social one and its responsibility is to adhere to the law. Therefore, a company would be engaging in an irresponsible venture if it does not seek to maximize profits.
Moreover, it is argued that companies are responsible to shareholders and should not engage in social issues since that would raise a question of legitimacy. As such, managers should allow the shareholders to decide on the company’s involvement in social issues even if the company is competent enough to socially change the environment. Further, the social policy is the precinct of the government, not the company. Businesses are also thought to be deficient of training in social issues and thus are incompetent in carrying out social