Essay about Companies Should Be Socially Responsible

801 Words Nov 12th, 2016 4 Pages
Firms should be socially responsible
Despite there being a case against firms being socially responsible it’s clear that the traditional view of simply making a profit is has changed. Firms have realised that conventional wisdom is outdated and therefore the New Thinking according to Porter (2013) is now seen as the modern day alternative. Awareness of the issues increased drastically in the 1960’s and early 70’s (Murphy, 1978 in Carroll 2010) and this increased pressure on firms to focus on CSR (McWilliams et al, 2000) therefore making firms unable to evade responsibility (Thompson, 2005) by relying on government. This reliance and failure of the government (Crane et al, 2010) to handle the scale of social problems put yet more emphasis on firms to be socially responsible, as seen by many such as Porter (2013) that firms hold the resources to scale the problems i.e. capital and products. Media scrutiny on firms to focus on CSR has also increased due to high profile scandals including Primark’s employees in Bangladesh and Enron lying about profits and being involved in inappropriate deals (BBC, 2002) according to Buchanan et al (2017). This supports Crane et al’s (2010) view mentioned earlier that firms create the problems so must therefore have a responsibility to prevent them by using their power and resources. Many others such as Newton (2005:77) believe firms have a ‘general duty to protect the natural environment’ showing that in today’s modern world firms must be…

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