Csr And The Economic Models Of Csr Essay

955 Words Feb 16th, 2015 4 Pages
There are three (3) models of CSR, which are alternatives to the economic models. The model of CSR claims that businesses are not obligated to social responsibility outside the limits of economic and legal obligation because the businesses are created to fulfill economic responsibility and expect to follow the law created by the society (Hartman, DesJardins & MacDonald, 2014, p. 216 ~ 217). All corporations have a social responsibility for manufacturing and distributing products through interstate commerce. However, some fundamentalist and business practitioners argued that CSR should be abandoned to establish better alternatives. According to Freeman & Liedtka (1991, July – August), CSR approach is not helpful to the society. They stated that CSR concept is dangerous idea because of the fundamental role of corporations (p. 92).
The corporation is established based on capitalism in which the primary purpose is to add wealth to the society, increase the production level to improve economy, and to meet the production demand. Some business practitioners thought that CSR is necessary for corporations in order for capitalism to function. Thereafter, the idea of CSR was embedded in capitalism to foster good society after the idea of CSR was generally accepted by people. However, Freeman & Liedtka (1991, July – August) argued that the idea of CSR has failed because the socialism is not an alternative to capitalism. Thus, society needs a better capitalism that could acknowledge the…

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