Essay about Importance Of Social Responsibility For Businesses

976 Words Oct 17th, 2016 4 Pages
Importance of Social Responsibility for Businesses
Business plays an important role in the economy as well as in the society. Since businesses are run by private owners, they act in the way that increases their profits. But, because of their great influence, businesses are expected to also take some social responsibility. Milton Friedman, in the essay “The social responsibility of business is to increase profits”, argues that businesses’ only responsibility is to increase its profits and although they may do generous deeds, they are not required to do them (Friedman 157-164). However, this type of mentality can harm business. Social responsibility is no longer a choice for business but rather a way for them to survive because disregard for social and environmental problems as well as unethical practices can bring about the end of a business. Cheating and unethical conduct go hand in hand and both can be very tempting when the only aim of a business is to make money, but cheating can have disastrous results. One example of cheating in business can be the Sears automotive repair chain scandal during the 1990s. Since the stock prices of a company are very important, the pressure to keep the prices high leads businesses to take drastic actions. To improve their earnings, Sears implemented a new system of compensation. This put the employees under immense pressure to increase their sales to keep their jobs. In turn, employees engaged in cheating such as dishonesty about the…

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