Corporate Social Responsibility Essay

2412 Words Jan 25th, 2013 10 Pages
1. Introduction

“There is one and only one social responsibility of business – to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to stay, engages in open and free competition without deception or fraud” (Friedman, 1970).
As one of the most influential economic scientist in the 20th century, Milton Friedman did this statement 41 years ago. In the last three decades the world economy went through a large change. Affected by the crisis of the industrial capitalism in the 1970s, the currency crisis in the 1980s or the financial crisis in 2007, business needed to readjust itself every time it reaches its limit. Especially concerning the collapse of the
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Not only stakeholders as customers and investors are included in the decision making but also communities, employees, suppliers and the society as a whole. Which is described in the definition of the World Business Council for Sustainable Development in its paper “Making Good Business Sense” as well: “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” (WBCSD, 2010).
According to the Book “Management Challenges for the 21st Century” by Peter Drucker, published in the year 1999, he mention two types of organizations where the exercise of CSR will be found: “those to do with social impacts or what business does to society and those to do with social problems or what business can do for society” (Drucker, 1999). Of course this is one important aspect to answer the question how CSR contribute to the improvement of the world.

2.1 History of CSR

“Business started long centuries before the dawn of history, but business as we now know it is new - new in its broadening scope, new in its social significance. Business has not learned how to handle these changes, nor does it recognize the magnitude of its responsibilities for the future of civilization” (Donham, 1929).
The concerns about social

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