An Analysis of Corporate Social Responsibility and the Global Compact
This essay will define the necessity of corporate social responsibility and the global compact for international business relations and ethical issues. The conflict between profiteering in the private sector and the exploitation of the general public has become a major issue in global ethical standards for corporations. The Global Compact defines the ten guidelines that define the ethical premise of corporate bargaining strategies and social interaction with local populations. The problem of first world corporate exploitation of third world labor for low cost/high profit initiatives is creating a polarized economy for international business. These ethical issues define …show more content…
However, the trend in American corporate culture tends toward maximizing profits over these types of mutually cooperative exchanges with third world business affiliates. Milton Friedman’s (1970) crucial article, “The Social Responsibility of Business is to Increase its Profits” on this issue defines massive problem between corporate greed/profit and the ethical issues that arise out of this profiteering culture: “The corporate executive would be spending someone else 's money for a general social interest” (para.9). In this ideology, Friedman (1970) supports the contention that there is no social responsibility of business to care for the interests of the people they employ or the environment, just as long as profit margins increase. The Global Compact defines the importance of respecting life in labor markets and in the environment, which can create a more balanced and responsible approach to mutually beneficial arrangements in preserving corporate integrity in Principle Eight: “[To] undertake initiatives to promote greater environmental responsibility” (Unglobalcompact.org, 2015). These are important factors that oppose Friedman’s (1970) radical support of profiteering the sole purpose of corporate organizations in the private
This essay will define the necessity of corporate social responsibility and the global compact for international business relations and ethical issues. The conflict between profiteering in the private sector and the exploitation of the general public has become a major issue in global ethical standards for corporations. The Global Compact defines the ten guidelines that define the ethical premise of corporate bargaining strategies and social interaction with local populations. The problem of first world corporate exploitation of third world labor for low cost/high profit initiatives is creating a polarized economy for international business. These ethical issues define …show more content…
However, the trend in American corporate culture tends toward maximizing profits over these types of mutually cooperative exchanges with third world business affiliates. Milton Friedman’s (1970) crucial article, “The Social Responsibility of Business is to Increase its Profits” on this issue defines massive problem between corporate greed/profit and the ethical issues that arise out of this profiteering culture: “The corporate executive would be spending someone else 's money for a general social interest” (para.9). In this ideology, Friedman (1970) supports the contention that there is no social responsibility of business to care for the interests of the people they employ or the environment, just as long as profit margins increase. The Global Compact defines the importance of respecting life in labor markets and in the environment, which can create a more balanced and responsible approach to mutually beneficial arrangements in preserving corporate integrity in Principle Eight: “[To] undertake initiatives to promote greater environmental responsibility” (Unglobalcompact.org, 2015). These are important factors that oppose Friedman’s (1970) radical support of profiteering the sole purpose of corporate organizations in the private