essay about social responsibility

Essay on Social Responsibility

Social responsibility is a term that has been used in different contexts, including the economy, education, politics , and religion. Social responsibility is challenging because it encompasses so many aspects, and there is no single definition of social responsibility. In simple words, social responsibility is the responsibility of an individual to act in a way that promotes social well-being. This means that a person has a sense of obligation to society and sacrifices for the good of others. BYJU’S essay on social responsibility explains the importance of being a socially responsible citizen.

A society’s responsibility to the individuals in that society can be seen through the various social programmes and laws. Governments try to create a better world for their citizens, so they implement various social programmes like welfare, tax assistance, and unemployment benefits. Laws are also crucial to a society because they enforce practical actions by its citizens and punish harmful actions. Now, let us understand the significance of social responsibility by reading a short essay on social responsibility.

Importance of Social Responsibility

BYJU’S essay on social responsibility highlights the importance of doing good deeds for society. The short essay lists different ways people can contribute to social responsibility, such as donating time and money to charities and giving back by visiting places like hospitals or schools. This essay discusses how companies can support specific causes and how people can be actively involved in volunteering and organisations to help humanitarian efforts.

Social responsibility is essential in many aspects of life. It helps to bring people together and also promotes respect for others. Social responsibility can be seen in how you treat other people, behave outside of work, and contribute to the world around you. In addition, there are many ways to be responsible for the protection of the environment, and recycling is one way. It is crucial to recycle materials to conserve resources, create less pollution, and protect the natural environment.

Society is constantly changing, and the way people live their lives may also vary. It is crucial to keep up with new technology so that it doesn’t negatively impact everyone else. Social responsibility is key to making sure that society is prosperous. For example, social media has created a platform for people to share their experiences and insights with other people. If a company were going to develop a new product or service, it would be beneficial for them to survey people about what they think about the idea before implementing it because prior knowledge can positively impact future decisions.

Social responsibility is essential because it creates a sense of responsibility to the environment . It can lead to greater trust among members of society. Another reason is that companies could find themselves at a competitive disadvantage if they do not ensure their practices are socially responsible. Moreover, companies help people in need through money, time, and clothing, which is a great way to showcase social responsibility.

Being socially responsible is a great responsibility of every human being, and we have briefly explained this in the short essay on social responsibility. Moreover, being socially responsible helps people upgrade the environment and society. For more essays, click on BYJU’S kids learning activities.

Frequently Asked Questions

Does being socially responsible help in protecting the environment.

Yes. Being socially responsible helps in protecting the environment.

Why should we be socially responsible?

We should be socially responsible because it is the right thing to upgrade society and the environment. Another reason is to help those in need because when more people have jobs, the economy can thrive, and people will have more opportunities.

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Essays on Social Responsibility

The importance of sociological theories.

Social responsibility is a modern philosophy that states that all individuals and organizations are obligated to help the community at large. This is typically an active effort involving acting against a social issue or prevention of committing harmful acts to the environment. Many companies and individuals engage in social responsibility because of its benefits on their immediate community as well as their business and profitability. It is an ongoing topic in society with many questions available for discussion.

Argumentative Essay

Social responsibility is an ideal topic for debate; there have been mixed results for companies and individuals who have pursued social responsibility. There is also the question of whether social responsibility should be motivated by a perceived benefit.This type of essay is based on philosophical theories on the necessity of social responsibility backed up with facts about previous social responsibility efforts. For example, an essay could be about how giving support to disaster victims can significantly boost an entity's professional image.

Analytical Essay

Social responsibility is a broad field of study; there are numerous factors to analyze in determining which mix of factors will have the highest chance of a successful social responsibility effort. For example, an author can look into the different types of philanthropy that address a social injustice, including: giving monetary gifts, hosting social awareness events and starting a sub-organization which addresses the issue at hand. Each type of social effort may have varying levels of effectiveness depending on the people’s acceptance and the complexity of the issue itself.

There are an abundant number of social responsibility campaigns enacted by different companies and individuals. Authors choose a particular entity and write a case study about that entity’s social responsibility efforts. This includes researching the motivation behind the effort, analyzing the program execution and judging the overall social impact of the campaign. Moreover, the essay can also highlight how the social responsibility effort directly affected the entity itself. Some common methods include doing a profitability comparison before and after the social responsibility campaign and conducting a qualitative study of how the campaign improves the entity’s image and reputation.

Future Application

Social responsibility is a highly evolving topic. Given the reported indirect benefits of social responsibility, there is a growing argument of how it should become a new form of business. Based on the original philosophy of social responsibility, this type of essay discusses the outlook on the integration of social responsibility in the work force. Some topics include the feasibility of a pure social responsibility company, ways for a single company to efficiently help macro audiences such as third world countries, or the possibility of legally enforcing social responsibility efforts from all companies.

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• "Essays on Efficiency Measurement and Corporate Social Responsibility"; Constantin Belu; 2009
• "Professional Ethics and Social Responsibility"; Daniel E. Wueste; 1994
• "Corporate Social Responsibility"; Philip Kotler; 2005

Raleigh Kung has been a social-media specialist and copywriter since 2010. He has worked with various companies on their online marketing campaigns and keeps a blog about social-media platforms. Now, he mainly writes about online media and education for various websites. Kung holds a master's degree in management and entrepreneurship from the University of San Francisco.

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From there to here: 50 years of thinking on the social responsibility of business

It has now been 50 years since economist Milton Friedman asked and answered a fundamental question: What is the role of business in society?

Friedman’s stance was plain: “There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits.” That view has long influenced management thinking, corporate governance, and strategic moves. But more recently, many leaders have sought to expand that definition to consider all the stakeholders who stand to gain—or lose—from organizations’ decisions.

In 2019, Business Roundtable released a new “Statement on the purpose of a corporation,” signed by 181 CEOs who committed to lead their companies for the benefit of all stakeholders—customers, employees, suppliers, communities, and shareholders. The statement outlined a modern standard for corporate responsibility.

On the 50th anniversary of Friedman’s landmark definition, we look at how the conversation on corporate purpose  has evolved.

The pre-1970 conversation

Even before Friedman’s essay published, the social responsibility of business was a topic of discussion. McKinsey, for example, was part of the early conversation about corporate purpose, which centered on the idea of improving performance and a belief that healthier corporations meant a healthier society. The firm’s earliest formal expression of its objectives spoke of the value of “advancing the profitableness and welfare of American business and hence the welfare of the country as a whole” (1937).

The discussion of corporations’ role in society continued to unfold in the 1950s and 1960s, when Columbia University and McKinsey presented a lecture series in which executives discussed the challenges of large organizations. Many of those talks became books that addressed the issues Friedman would soon take on.

Friedman’s seminal 1970 essay

On September 13, 1970, when Friedman published his landmark piece, “The social responsibility of business is to increase its profits,” in the New York Times , he wrote:

In a free-enterprise, private-property system, a corporate executive is an employee of the owners of the business. He has direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to their basic rules of the society, both those embodied in law and those embodied in ethical custom.

Like many businesses and thinkers, McKinsey has grappled with such ideas over the years. A 1971 statement of the firm’s goals highlights the role of profitability but acknowledges that it isn’t the sole social responsibility of business; consultants can also “do worthwhile things for society as well as to earn substantial financial rewards.”

Marvin Bower—McKinsey’s managing director from 1950 to 1967, who remained a vocal leader even after stepping down—also continued to emphasize the importance of enduring business values, which could be translated into societal as well as business impact:

Outside the service for which we are compensated, each of us has an opportunity, through the firm, to serve the society of which [we are] a part. Our knowledge of the problem-solving process enables us to contribute disproportionately to the welfare of our communities.

The 1980s and 1990s: An expanded global view

Management attention started to go global in the 1980s. The business world examined how Japanese companies in particular were revolutionizing manufacturing to compete against once-dominant Western players. Political and social changes were also afoot, and the shift toward globalization took hold.

McKinsey managing director Fred Gluck (1988–94) called on the firm to raise its sights and expand its horizons:

Beginning with a memo not two weeks before the Berlin Wall came down, he urged his partners to expand their vision beyond their usual business clients. As the world’s best problem solvers, he argued, McKinsey should aspire to advise national and world leaders on global issues like poverty, European integration, and the environment. It should help design and implement the reforms that were certain to follow in the wake of the revolutions unfolding in Eastern Europe, the Soviet Union, and Asia. Though not universally shared, Gluck’s call to action struck a chord with many firm leaders. … They were being challenged to help change the world.

The McKinsey Global Institute was founded in this era, looking to generate fresh insights through serious research that integrated the disciplines of economics and management. And although work continued to prize financial impact for clients, the thinking around future impact continued to expand.

The 2000s and 2010s: A focus on longer-term, inclusive growth

Technological advances may have facilitated globalization, but the dot-com crash of the early 2000s and ensuing changes—to say nothing of the global financial crisis of 2008—brought discussion on the social responsibility of business into the zeitgeist.

In a 2006 interview, McKinsey’s former London office manager Peter Foy reflected:

I have real misgivings about the way that [business] changed. Because the minute the world … changed from building great companies and keeping shareholders happy to serving shareholders on a quarterly delivery, wealth-creation basis … you changed everything in the business system. The motivation of the CEO, and the organization, and the time you spend on it all.

The conversations also entered the realm of public ideas. One particularly powerful statement in the March 2011 Harvard Business Review article “ Capitalism for the long term ,” penned by McKinsey managing partner Dominic Barton, called for business-led reform to go beyond quarterly capitalism:

This shift is not just about persistently thinking and acting with a next-generation view—although that’s a key part of it. It’s about rewiring the fundamental ways we govern, manage, and lead corporations. It’s also about changing how we view business’s value and its role in society.

Barton later helped found the not-for-profit Focusing Capital on the Long Term, which encourages long-term investing and business decision making.

Additionally, the McKinsey Quarterly marked its 50-year anniversary  with a special edition on the future of management. One key theme: Corporate longevity and a long-term view of performance.

2019, the Business Roundtable statement, and what lies ahead

On August 19, 2019, the Business Roundtable issued its latest statement on the purpose of a corporation :

Businesses play a vital role in the economy by creating jobs, fostering innovation and providing essential goods and services. Businesses make and sell consumer products; manufacture equipment and vehicles; support the national defense; grow and produce food; provide health care; generate and deliver energy; and offer financial, communications and other services that underpin economic growth. While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders.

The statement was endorsed by 181 CEOs (along with McKinsey global managing partner Kevin Sneader ), each committing to leading their companies for the benefit of all stakeholders—customers, employees, suppliers, communities, and shareholders.

Echoes of that statement continue to resonate today, even as leaders navigate crises and contemplate the next normal beyond coronavirus . As Marc Goedhart and Tim Koller note in “ The value of value creation ”: “Long-term value creation can—and should—take into account the interests of all stakeholders.” And Sneader and his coauthors underscore it as a top-management ethos in a new article on the CEO moment :

[The] COVID-19 pandemic has laid bare the profound interconnectedness between businesses and the broader world in which they operate. … Employees, customers, and stakeholders expect a CEO to articulate where the company stands on critical issues.

What lies ahead on this topic? Write to us .

This article was conceptualized, illustrated, and edited by McKinsey Global Publishing colleagues Mike Borruso , Torea Frey , Gwyn Herbein ,  Philip Mathew , Janet Michaud , and Nathan Wilson , with Paul Lasewicz , our archivist, guiding us on this walk through history.

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5 Examples of Corporate Social Responsibility That Were Successful

• 06 Jun 2019

Business is about more than just making a profit. Climate change, economic inequality, and other global challenges that impact communities worldwide have compelled companies to be purpose-driven and contribute to the greater good .

In a recent study by Deloitte , 93 percent of business leaders said they believe companies aren't just employers, but stewards of society. In addition, 95 percent reported they’re planning to take a stronger stance on large-scale issues in the coming years and devote significant resources to socially responsible initiatives. With more CEOs turning their focus to the long term, it’s important to consider what you can do in your career to make an impact .

Access your free e-book today.

What Is Corporate Social Responsibility?

Corporate social responsibility (CSR) is a business model in which for-profit companies seek ways to create social and environmental benefits while pursuing organizational goals, like revenue growth and maximizing shareholder value .

Today’s organizations are implementing extensive corporate social responsibility programs, with many companies dedicating C-level executive roles and entire departments to social and environmental initiatives. These executives are commonly referred to as a chief officer of corporate social responsibility or chief sustainability officer (CSO).

There are many types of corporate social responsibility and CSR might look different for each organization, but the end goal is always the same: Do well by doing good . Companies that embrace corporate social responsibility aim to maintain profitability while supporting a larger purpose.

Rather than simply focusing on generating profit, or the bottom line, socially responsible companies are concerned with the triple bottom line , which considers the impact that business decisions have on profit, people, and the planet.

It’s no coincidence that some of today’s most profitable organizations are also socially responsible. Here are five examples of successful corporate social responsibility you can use to drive social change at your organization.

5 Corporate Social Responsibility Examples

1. lego’s commitment to sustainability.

As one of the most reputable companies in the world, Lego aims to not only help children develop through creative play, but foster a healthy planet.

Lego is the first, and only, toy company to be named a World Wildlife Fund Climate Savers Partner , marking its pledge to reduce its carbon impact. And its commitment to sustainability extends beyond its partnerships.

By 2030, the toymaker plans to use environmentally friendly materials to produce all of its core products and packaging—and it’s already taken key steps to achieve that goal.

Over the course of 2013 and 2014, Lego shrunk its box sizes by 14 percent , saving approximately 7,000 tons of cardboard. Then, in 2018, the company introduced 150 botanical pieces made from sustainably sourced sugarcane —a break from the petroleum-based plastic typically used to produce the company’s signature building blocks. The company has also recently committed to removing all single-use plastic packaging from its materials by 2025, among other initiatives .

Along with these changes, the toymaker has committed to investing $164 million into its Sustainable Materials Center , where researchers are experimenting with bio-based materials that can be implemented into the production process.

Through all of these initiatives, Lego is well on its way to tackling pressing environmental challenges and furthering its mission to help build a more sustainable future.

Related : What Does "Sustainability" Mean in Business?

2. Salesforce’s 1-1-1 Philanthropic Model

Beyond being a leader in the technology space, cloud-based software giant Salesforce is a trailblazer in the realm of corporate philanthropy.

Since its outset, the company has championed its 1-1-1 philanthropic model , which involves giving one percent of product, one percent of equity, and one percent of employees’ time to communities and the nonprofit sector.

To date, Salesforce employees have logged more than 5 million volunteer hours . Not only that, but the company has awarded upwards of $406 million in grants and donated to more than 40,000 nonprofit organizations and educational institutions.

In addition, through its work with San Francisco Unified and Oakland Unified School Districts, Salesforce has helped reduce algebra repeat rates and contributed to a high percentage of students receiving A’s or B’s in computer science classes.

As the company’s revenue continues to grow, Salesforce stands as a prime example of the idea that profit-making and social impact initiatives don’t have to be at odds with one another.

3. Ben & Jerry’s Social Mission

At Ben & Jerry’s, positively impacting society is just as important as producing premium ice cream.

In 2012, the company became a certified B Corporation , a business that balances purpose and profit by meeting the highest standards of social and environmental performance, public transparency, and legal accountability.

As part of its overarching commitment to leading with progressive values, the ice cream maker established the Ben & Jerry’s Foundation in 1985, an organization dedicated to supporting grassroots movements that drive social change.

Each year, the foundation awards approximately $2.5 million in grants to organizations in Vermont and across the United States. Grant recipients have included the United Workers Association, a human rights group striving to end poverty, and the Clean Air Coalition, an environmental health and justice organization based in New York.

The foundation’s work earned it a National Committee for Responsive Philanthropy Award in 2014, and it continues to sponsor efforts to find solutions to systemic problems at both local and national levels.

Related : How to Create Social Change: 4 Business Strategies

4. Levi Strauss’s Social Impact

In addition to being one of the most successful fashion brands in history, Levi’s is also one of the first to push for a more ethical and sustainable supply chain.

In 1991, the brand created its Terms of Engagement , which established its global code of conduct regarding its supply chain and set standards for workers’ rights, a safe work environment, and an environmentally-friendly production process.

To maintain its commitment in a changing world, Levi’s regularly updates its Terms of Engagement. In 2011, on the 20th anniversary of its code of conduct, Levi’s announced its Worker Well-being initiative to implement further programs focused on the health and well-being of supply chain workers.

Since 2011, the Worker Well-being initiative has been expanded to 12 countries and more than 100,000 workers have benefited from it. In 2016, the brand scaled up the initiative, vowing to expand the program to more than 300,000 workers and produce more than 80 percent of its product in Worker Well-being factories by 2025.

For its continued efforts to maintain the well-being of its people and the environment, Levi’s was named one of Engage for Good’s 2020 Golden Halo Award winners, which is the highest honor reserved for socially responsible companies.

5. Starbucks’s Commitment to Ethical Sourcing

Starbucks launched its first corporate social responsibility report in 2002 with the goal of becoming as well-known for its CSR initiatives as for its products. One of the ways the brand has fulfilled this goal is through ethical sourcing.

In 2015, Starbucks verified that 99 percent of its coffee supply chain is ethically sourced , and it seeks to boost that figure to 100 percent through continued efforts and partnerships with local coffee farmers and organizations.

The brand bases its approach on Coffee and Farmer Equity (CAFE) Practices , one of the coffee industry’s first set of ethical sourcing standards created in collaboration with Conservation International . CAFE assesses coffee farms against specific economic, social, and environmental standards, ensuring Starbucks can source its product while maintaining a positive social impact.

For its work, Starbucks was named one of the world’s most ethical companies in 2021 by Ethisphere.

The Value of Being Socially Responsible

As these firms demonstrate , a deep and abiding commitment to corporate social responsibility can pay dividends. By learning from these initiatives and taking a values-driven approach to business, you can help your organization thrive and grow, even as it confronts global challenges.

Do you want to gain a deeper understanding of the broader social and political landscape in which your organization operates? Explore our three-week Sustainable Business Strategy course and other online courses regarding business in society to learn more about how business can be a catalyst for system-level change.

This post was updated on April 15, 2022. It was originally published on June 6, 2019.

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Greed Is Good. Except When It’s Bad.

Sept. 13 is an important date in the world of business. Fifty years ago on that day — today — Milton Friedman published a seminal essay in The New York Times Magazine that is still hotly debated in business and policy circles. DealBook teamed up with The Times Magazine to revisit the legacy of the so-called Friedman Doctrine in a special issue out today in print. This newsletter runs through some of the highlights, along with bonus material and other features to mark the occasion.

Want this delivered to your inbox each day? Sign up here .

A free market manifesto that changed the world, reconsidered

It was the essay heard round the world. Milton Friedman’s “ The Social Responsibility of Business Is to Increase Its Profits ” laid out arguably the most consequential economic idea of the latter half of the 20th century. The essay, published in The New York Times Magazine on Sept. 13, 1970, was a call to arms for free market capitalism that influenced a generation of executives and political leaders, most notably Ronald Reagan and Margaret Thatcher.

Mr. Friedman, who was on the faculty of the University of Chicago and who died in 2006 at 94, was no mere economist; he was a kind of celebrity. He became a regular on the talk-show circuit. PBS even gave him a 10-part series. Fifty years later, his theories on the primacy of shareholders and the priority of profits still hold sway over large parts of the corporate world.

We wanted to mark the occasion by stirring a series of discussions and debates, so we assembled more than 20 experts — including C.E.O.s, Nobel laureates and other top thinkers — and asked them to respond to the essay. Some addressed specific passages, and others took on the entire argument. A selection of their responses is below; you can read extended versions online and see all of the annotations in the context of the full original essay in print.

Friedman: “The Social Responsibility of Business Is to Increase Its Profits”

• Marc Benioff , chief executive of Salesforce

I’ll never forget reading Friedman’s essay when I was in business school in the 1980s. It influenced — I’d say brainwashed — a generation of C.E.O.s who believed that the only business of business is business. The headline said it all. Our sole responsibility to society? Make money. The communities beyond the corporate campus? Not our problem.

I didn’t agree with Friedman then, and the decades since have only exposed his myopia. Just look where the obsession with maximizing profits for shareholders has brought us: terrible economic, racial and health inequalities; the catastrophe of climate change. It’s no wonder that so many young people now believe that capitalism can’t deliver the equal, inclusive, sustainable future they want.

Friedman: “What does it mean to say that ‘business’ has responsibilities?”

• Howard Schultz , emeritus chairman of Starbucks

I’ve asked this question since opening my first coffee shop in 1986. My answer, a rebuke of Friedman’s single-minded focus on profits, appeared in our company’s original mission statement: “We wish to be an economic, intellectual and social asset in communities where we operate.” We would do this not at the expense of profits, but to grow them.

If Friedman had balked, asserting that Starbucks could have performed even better without these “socially responsible” activities, I would have told him what I told an institutional investor who wanted me to slash health care costs during the Great Recession, or what I said to a shareholder in 2013 who falsely claimed that Starbucks’s support of gay rights hurt profits: If you feel you can get a better return elsewhere, you are free to sell your shares.

In 2013, I stood in front of Starbucks shareholders and posed this question: “What is the role and responsibility of a for-profit public company?” Friedman’s flawed answer is not his legacy. His legacy is the question itself — which today’s leaders must answer with a renewed commitment to balancing moral purpose and high performance.

____________________________

Today’s DealBook Briefing was edited by Andrew Ross Sorkin in Connecticut and Jason Karaian in London.

Friedman: “In a free-enterprise, private-property system, a corporate executive is an employee of the owners of the business. He has direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom.”

• Marianne Bertrand , professor of economics at the University of Chicago Booth School of Business

The shareholder-primacy view of the corporation — which gives little voice to the workers, customers and communities that are impacted by corporate decisions — has been the modus operandi of United States capitalism. Why did this view become so dominant? One rationale was a practical one. Rather than being asked to balance multiple, often conflicting, interests among stakeholders, the manager is given a simple objective function. More important, though, was the naïve belief, dominant in the Chicago school at the time, that what is good for shareholders is good for society — a belief that rested on the assumption of perfectly functioning markets. Unfortunately, such perfect markets exist only in economics textbooks.

• Daniel Loeb , chief executive of Third Point

Friedman’s timeless essay resonates today as corporate America embraces “stakeholder capitalism,” a popular concept that is inconsistent with the law. Stakeholder capitalism distorts the incentive that prompts investors to risk their capital: the promise of a profit on their investment. So, I share Friedman’s concern that a movement toward prioritizing ill-defined “stakeholders” might allow some executives to pursue personal agendas — or simply camouflage their own incompetence (until it is starkly revealed by poor shareholder returns).

Friedman: “This process raises political questions on two levels: principle and consequences.”

• Erika Karp , chief executive of Cornerstone Capital Group

Friedman makes the mistake of not including two words: “long term.” Had he talked about “long-term principle and long-term consequences,” businesses might be more thoughtful about deploying financial capital, natural capital and human capital. Respect for the value of each form reinforces the long-term value of the other. Friedman once said: “Governments never learn. Only people learn.” And so, investors and corporations have learned a better and more holistic way to serve our shareholders for the long term. That is free-market economics for the 21st century.

Friedman: “This is the basic reason why the doctrine of ‘social responsibility’ involves the acceptance of the socialist view that political mechanisms, not market mechanisms, are the appropriate way to determine the allocation of scarce resources to alternative uses.”

• Joseph Stiglitz , professor of economics at Columbia University, was awarded a Nobel Prize in 2001

By the time he wrote this essay, Friedman, who had done distinguished analytic and empirical work in economics, had become largely a conservative ideologue.

I gave a talk at the University of Chicago around this time, presenting an early version of my research establishing that in the presence of imperfect risk markets and incomplete information — that is, always — firms pursuing profit maximization did not lead to the maximization of societal welfare. I explained what was wrong with Adam Smith’s invisible-hand conjecture, which said that the pursuit of self-interest would lead, as if by an invisible hand, to the well-being of society. During the seminar, and in extensive conversations afterward, Friedman simply couldn’t or wouldn’t accept the result; but neither, of course, could he refute the analysis — it has been a half-century, and my analysis has stood the test of time. His conclusion, as influential as it was, has not.

Today the downside of Friedman’s perspective is even darker: Is it Mark Zuckerberg’s social responsibility to allow wanton disinformation to roam over his social media platform? Is it Zuckerberg’s responsibility to lobby to get rid of a pesky foreign competitor while fighting for his company to be free from anti-competitive restraints and any accountability, so long as it increases his bottom line? Friedman would say yes. Economic theory, common sense and historical experience suggest otherwise. It is good that the business community has awaked. Now let’s see whether they practice what they preach.

Friedman: “They can do good — but only at their own expense.”

• Dambisa Moyo , global economist and the author, most recently, of “Edge of Chaos.”

The heart of what Friedman was saying remains largely true, but I have a fundamental problem with this sentence. For most corporations today, the question of “doing good” has become an existential question. Companies operate as going concerns — they want to survive. They face technological changes, changes in consumer preferences, changes in regulation, and these changes are forcing companies not to fight against the changes but to adapt. Take the example of a pharmaceutical company searching for a solution for cancer. The goal is a social good. From the companies’ perspective, they’re on the same page as society. The pursuit of profit does not need to run counter to what will benefit society. In some cases the interest of the corporation is absolutely married to the social good.

Friedman: “To illustrate, it may well be in the long-run interest of a corporation that is a major employer in a small community to devote resources to providing amenities to that community … ’

• Glenn Hubbard , professor of economics at Columbia Business School

Friedman’s argument was controversial 50 years ago, and it’s controversial again today. But it’s still more or less correct. Somewhat unfairly, Friedman’s focus has been taken to mean “short-term value,” generating gains to benefit current shareholders at the expense of other stakeholders. But Friedman is best read as embracing maximizing shareholder value over the long run. Toward that end, short-term gains at the expense of stakeholders — who might decide not to work for, supply to or buy from the firm — make little sense.

There is another rub, and Friedman anticipated it: Even long-term shareholder-value maximization can’t address all problems faced by a firm. Some problems — climate change, for example — are arguably more complex than Friedman envisioned. In these cases, public policy changes are required.

Friedman: “In the present climate of opinion, with its widespread aversion to ‘capitalism,’ ‘profits,’ the ‘soulless corporation’ and so on, this is one way for a corporation to generate good will as a byproduct of expenditures that are entirely justified in its own self-interest.”

• Ken Langone , a founder of Home Depot and the author of “I Love Capitalism!”

Here’s the most misunderstood among Friedman’s many deep insights — a company can make good-will expenditures “that are entirely justified in its own self-interest.” I see that as an extension of the most fundamental truth in capitalism, that in any voluntary exchange both parties benefit.

If we ignore Friedman’s crystalline perception — that profits are the driving focus — then the entire mission, good will included, falls apart. When we turn the idea of profit into a callous slur, as Friedman’s laziest critics often do, we are demeaning the essential propelling force that enables all these interconnected good works to occur.

All our investors, employees, partners and customers also deserve the freedom and security to do good will in their own individual ways, too. But they cannot spread those wings unless the company delivers the profits to lift them.

Are those ordinary people so bereft of charity and common sense that they must grant some newspaper pontificator or a special-interest group with a bullhorn the imaginary right to dictate how their company channels the money they rightfully earned and counted on? As Friedman warned us, to argue yes does worse than belittle every American. It turns the whole of our lives into politics. It means that every jockeying constituency that marauds our government also gets to compete and finagle over how your savings and investment are spent.

Friedman: “That is why, in my book ‘Capitalism and Freedom,’ I have called it a ‘fundamentally subversive doctrine’ in a free society, and have said that in such a society, ‘there is one and only one social responsibility of business — to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.’

• Darren Walker , chief executive of the Ford Foundation

In propaganda, an accusation often betrays an admission. The most “subversive doctrine” was — and remains — Friedman’s own. His doctrine absolved the firm of its responsibility to serve as a force for racial integration and inclusion. It produced generations of corporate leaders dedicated to the sacred primacy of shareholder value.

In that way, Friedman’s thinking became theology — the intellectual scaffolding that allowed its disciples to justify decades of greed-is-good excess. Gone were the days when someone like my semiliterate grandfather, with only a third-grade education, could work as a porter and benefit from a profit-sharing plan provided by a company that dignified his work. In their place were new conditions in which our social contract frayed and our economy tilted out of balance — fomenting the unsustainable inequalities that plague America today.

Friedman ignored that in a democratic-capitalist society, democracy must come first. “We, the people” grant businesses their license to operate — which they, in turn, must earn and renew.

Further reading (and listening)

“ Has Business Left Milton Friedman Behind? ”

In a column introducing the anniversary project, Andrew asks: “What would Mr. Friedman make of this current moment?”

In his essay, he calls outspoken C.E.O.s “unwitting puppets of the intellectual forces that have been undermining the basis of a free society.” So how would he judge today’s corporate leaders, who increasingly disavow that view of profit as business’s only responsibility — and use their money and influence to back movements pushing for racial equality, addressing climate change or taking overt political positions?

“ How Liberals Opened the Door to Libertarian Economics ”

For more on the historical context in which Mr. Friedman’s essay landed, the author Kurt Andersen writes about how a “decade of free speech and anything-goes outlandishness made his previously outlandish economic ideas seem worthy of discussion in respectable circles.”

For businessmen who felt demonized by public opinion and besieged by tougher government regulation for the last few years, the militancy of the Friedman doctrine in The New York freaking Times a year after Woodstock was thrilling. And then, as now, to get what they were mainly after politically — superlow taxes, minimized regulation — they exploited the voter backlash against street protests by aggrieved, angry younger Americans.

“ What Milton Friedman Missed About Social Inequality ”

In an extended online version of their remarks in the magazine, Delaware’s former chief justice Leo Strine Jr. and the Allbirds co-founder Joey Zwillinger write about the “rueful irony in this anniversary.”

Mr. Friedman wrote the influential essay at a time when economic security was strong, as the New Deal’s principles produced widespread prosperity, reduced poverty and helped Black Americans take their first real strides toward economic inclusion. Since then, the United States has gone backward in economic equality and security — a situation that the Covid-19 pandemic has exposed for all to see.

Mr. Strine and Mr. Zwillinger also joined us for a DealBook Debrief conference call, which you can listen to here . During the call, the former judge described the need for a “truth and reconciliation commission” for capitalism, reflecting on the issues — like social injustice and climate change — that have grown in prominence in the 50 years since Mr. Friedman published his essay.

What do you think? What did Milton Friedman get right — and wrong? Should businesses have any priorities more important than profits? Can companies serve shareholders and other stakeholders equally? Let us know at [email protected] . Include your name and location and we may include your response in a future newsletter.

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What Is Social Responsibility?

Understanding social responsibility, areas of focus.

• Socially Responsible Corporations

The Bottom Line

• Business Essentials

Social Responsibility in Business: Meaning, Types, Examples, and Criticism

Social responsibility is an ethical focus for individuals and companies whereby they seek to take action and be accountable for practices that benefit society. Social responsibility has become increasingly important to investors and consumers who seek investments that not only are profitable but also contribute to the welfare of society and the environment.

While critics have traditionally argued that the basic nature of business does not consider society as a stakeholder , younger generations are embracing social responsibility and driving change.

Key Takeaways

• Social responsibility means that besides maximizing shareholder value, businesses should operate in a way that benefits society.
• Socially responsible companies should adopt policies that promote the well-being of society and the environment while lessening negative impacts on them.
• Companies can act responsibly in many ways, such as by promoting volunteering, making changes that benefit the environment, engaging in ethical labor practices, and engaging in charitable giving.
• Consumers are more actively looking to buy goods and services from socially responsible companies, hence impacting their profitability.
• Critics assert that practicing social responsibility is the opposite of why businesses exist.

Michela Buttignol / Investopedia

Social responsibility means that individuals and companies must act in the best interests of their environment and society as a whole. As it applies to business, social responsibility is known as corporate social responsibility (CSR) and is becoming a more prominent area of focus within businesses due to shifting social norms.

The crux of this theory is to enact policies that promote an ethical balance between the dual mandates of striving for profitability and benefiting society as a whole. These policies can be either commission (philanthropy: donations of money, time, or resources) or omission (e.g., “go green” initiatives such as reducing greenhouse gasses or abiding by U.S. Environmental Protection Agency regulations to limit pollution).

Many companies, such as those with “green” policies, have made social responsibility an integral part of their business models , and they have done so without compromising profitability.

Additionally, more consciously capitalistic investors and consumers are factoring in a company’s commitment to socially responsible practices before making an investment or purchase. As such, embracing social responsibility can benefit the prime directive: maximization of shareholder value.

There is a moral imperative as well. Actions—or the lack thereof—will affect future generations. Put simply, social responsibility is just good business practice, and a failure to do so can have a deleterious effect on the balance sheet.

Social responsibility can also boost company morale, especially when a company can engage employees with its social causes.

In general, social responsibility is more effective when a company takes it on voluntarily instead of waiting for the government to require them to do so through regulation.

The International Organization for Standardization (ISO) emphasizes that a business’s ability to maintain a balance between pursuing economic performance and adhering to societal and environmental issues is a critical factor in operating efficiently and effectively.

The key ways that a company embraces social responsibility include philanthropy, promoting volunteering, ethical labor practices, and environmental changes.

For example, companies managing their environmental impact might look to reduce their carbon footprint and limit waste. There’s also the social responsibility of ethical practices for employees, which can mean offering a fair wage, which arises when there are limited employee protection laws.

Examples of Socially Responsible Corporations

Social responsibility takes on different meanings within industries and companies. For example:

• Starbucks Corp. ( SBUX ) committed to social responsibility from the start, including sustainability and community welfare. It purchases Fair Trade Certified ingredients to manufacture products and actively supports sustainable farming in the regions where ingredients are sourced.
• Ben & Jerry’s Homemade Holdings Inc. has integrated social responsibility into the core of its operations. Like Starbucks, the company purchases Fair Trade Certified ingredients.
• Salesforce.com Inc. ( CRM ) developed what it calls the 1-1-1 model. The company dedicates 1% of its equity, 1% of its product, and 1% of its employees’ time back to the community.
• Big-box retailer Target Corp. ( TGT ), also well known for its social responsibility programs, has donated money to communities in which the stores operate, including education grants.

Criticism of Corporate Social Responsibility

Not everyone believes that businesses should have a social conscience. Economist Milton Friedman stated that “‘social responsibilities of business’ are notable for their analytical looseness and lack of rigor.” Friedman believed that only individuals can have a sense of social responsibility. Businesses, by their very nature, cannot. Some experts believe that social responsibility defies the very point of being in business: profit above all else.

However, social responsibility has become more mainstream and is now practiced among a wide range of companies. Younger generations, such as millennials and Gen Z , are embracing social responsibility and driving change in the workplace and as consumers.

What Are Examples of Social Responsibility?

Social responsibility includes companies engaging in environmental preservation efforts, ethical labor practices, philanthropy, and promoting volunteering. For example, a company may change its manufacturing process to reduce carbon emissions.

What Are the Main Benefits of Social Responsibility?

Benefiting society and lessening the negative impacts on the environment are among the main benefits of social responsibility. Consumers are increasingly looking to buy goods and services from socially responsible companies, which can have a positive impact on their bottom line.

How Does Social Responsibility Benefit Companies?

In addition to potentially increasing the bottom line, companies that implement social responsibility programs can also boost their brand image. Social responsibility programs can also have a positive impact on morale among employees.

Social responsibility benefits society and the environment while lessening negative impacts on them. Companies engaging in social responsibility can do so in a number of ways, including making changes that benefit the environment, engaging in ethical labor practices, and promoting volunteering, and philanthropy. Consumers are more actively looking to do business with socially responsible companies , which can also benefit bottom lines.

Lu, Hao and et al. " How Do Investors Value Corporate Social Responsibility? Market Valuation and The Firm Specific Contexts ." Journal of Business Research , vol. 125, March 2021, pp. 14-25.

International Organization for Standardization. " Standards ."

International Organization for Standardization. " ISO and Small & Medium Enterprises ."

Starbucks. “ Starbucks Ethical Sourcing of Sustainable Products .”

Starbucks. “ Becoming Resource Positive .”

Ben and Jerry’s. “ Fairtrade .”

Ben and Jerry’s. “ Our Values and Mission .”

Salesforce. “ How Far Can the 1-1-1 Model Go? This Tech Darling Has a Unique Approach .”

Target. " Offering Debt-Free Degrees to More Than 340,000 Target Team Members? Now That’s a Smart Move ."

Target. “ Sustainability & Governance .”

The New York Times. “ A Friedman Doctrine—The Social Responsibility of Business Is to Increase Its Profits .”

Massachusetts Institute of Technology, Sloan School of Management. “ Social Responsibility Matters to Business — A Different View from Milton Friedman from 50 Years Ago .”

• Guide to Socially Responsible Investments (SRI) 1 of 22
• Why Social Responsibility Matters to Businesses 2 of 22
• Investing in Unethical Stocks: Pros and Cons for Traders 3 of 22
• Socially Responsible Investing (SRI) vs. Sin Stocks 4 of 22
• Racial Justice Investing: What It is, How It Works 5 of 22
• The Top 5 Impact Investing Firms 6 of 22
• Socially Responsible Mutual Funds 7 of 22
• The Rise of the Socially Responsible ETFs 8 of 22
• Demand for ESG Investments Soars Emerging From COVID-19 Pandemic 9 of 22
• A Guide to Faith-Based Investing 10 of 22
• Socially Responsible Investment for Gender Empowerment 11 of 22
• A History of Impact Investing 12 of 22
• Impact Investing vs. Venture Philanthropy 13 of 22
• How Do ESG, SRI, and Impact Funds Differ? 14 of 22
• Ethical Investing: Overview and How To Do It 15 of 22
• Social Responsibility in Business: Meaning, Types, Examples, and Criticism 16 of 22
• What Is CSR? Corporate Social Responsibility Explained 17 of 22
• What Is ESG Investing? 18 of 22
• Conscious Capitalism: Definition, 4 Principles, and Company Examples 19 of 22
• Social Impact Statement: Meaning, Criticisms, Example 20 of 22
• Social Impact Bond (SIB): Definition, How It Works, and Example 21 of 22
• Impact Investing: Definition, Types, and Examples 22 of 22

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Social Responsibility Argumentative Essays Samples For Students

13 samples of this type

During studying in college, you will certainly need to write a lot of Argumentative Essays on Social Responsibility. Lucky you if linking words together and transforming them into meaningful text comes naturally to you; if it's not the case, you can save the day by finding an already written Social Responsibility Argumentative Essay example and using it as a model to follow.

This is when you will certainly find WowEssays' free samples database extremely useful as it contains numerous professionally written works on most various Social Responsibility Argumentative Essays topics. Ideally, you should be able to find a piece that meets your requirements and use it as a template to build your own Argumentative Essay. Alternatively, our competent essay writers can deliver you an original Social Responsibility Argumentative Essay model crafted from scratch according to your individual instructions.

Corporate Social Responsibility Argumentative Essay

Introduction.

Corporate governance in strategic management entails a framework of rules and regulations with which the management uses to enhance accountability and transparency in dealing with the company’s stakeholder relationships. Stakeholders of the company include shareholders, suppliers, employees, management, the community, and the government. Each stakeholder has its own set of rights and expectations from the day-to-day activities of the business. By observing the needs and interests of each stakeholder, one engages in Corporate Social Responsibility where not only the interests of the firm are at hand but also the societal, economic, and environmental interests.

What is CSR?

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Two Ethically And Two Unethically Acting Companies Argumentative Essays Examples

Example of argumentative essay on corporate social responsibility, a critique of friedmans essay argumentative essay examples, good argumentative essay on materialistic value as a positive in the short term.

Advertisement is playing as an inseparable part of media, and the impact of this has been such that, that many times people are more interested in advertisement rather than any other things main purpose of media. These promotion campaigns have been dominating the mind of people, and it has been affecting the people directly as well as indirectly by hitting in their subconscious.

Argumentative Essay On Research Methodology

Does uber continuous business model upgrade help them to stay ahead of the local cab companies and the competition in the US cab industry?

Sample Argumentative Essay On Engineering Ethics

Semi-automatic weapon ban argumentative essay sample, cover letter, on liberty by john stuart mill argumentative paper argumentative essay, pros and cons of a partnership as one of the forms of ownership argumentative essay examples.

Partnership is defined as the relationship of two or more people who come together jointly to carry out a business. This form of indulgence has its advantages and disadvantages;

Advantages of partnership

Role of businesses in the economy argumentative essay sample.

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Creating a Corporate Social Responsibility Program with Real Impact

• Emilio Marti,
• David Risi,
• Eva Schlindwein,
• Andromachi Athanasopoulou

Lessons from multinational companies that adapted their CSR practices based on local feedback and knowledge.

Exploring the critical role of experimentation in Corporate Social Responsibility (CSR), research on four multinational companies reveals a stark difference in CSR effectiveness. Successful companies integrate an experimental approach, constantly adapting their CSR practices based on local feedback and knowledge. This strategy fosters genuine community engagement and responsive initiatives, as seen in a mining company’s impactful HIV/AIDS program. Conversely, companies that rely on standardized, inflexible CSR methods often fail to achieve their goals, demonstrated by a failed partnership due to local corruption in another mining company. The study recommends encouraging broad employee participation in CSR and fostering a culture that values CSR’s long-term business benefits. It also suggests that sustainable investors and ESG rating agencies should focus on assessing companies’ experimental approaches to CSR, going beyond current practices to examine the involvement of diverse employees in both developing and adapting CSR initiatives. Overall, embracing a dynamic, data-driven approach to CSR is essential for meaningful social and environmental impact.

By now, almost all large companies are engaged in corporate social responsibility (CSR): they have CSR policies, employ CSR staff, engage in activities that aim to have a positive impact on the environment and society, and write CSR reports. However, the evolution of CSR has brought forth new challenges. A stark contrast to two decades ago, when the primary concern was the sheer neglect of CSR, the current issue lies in the ineffective execution of these practices. Why do some companies implement CSR in ways that create a positive impact on the environment and society, while others fail to do so? Our research reveals that experimentation is critical for impactful CSR, which has implications for both companies that implement CSR and companies that externally monitor these CSR activities, such as sustainable investors and ESG rating agencies.

• EM Emilio Marti is an assistant professor at the Rotterdam School of Management (RSM) at Erasmus University Rotterdam.
• DR David Risi is a professor at the Bern University of Applied Sciences and a habilitated lecturer at the University of St. Gallen. His research focuses on how companies organize CSR and sustainability.
• ES Eva Schlindwein is a professor at the Bern University of Applied Sciences and a postdoctoral fellow at the University of Oxford. Her research focuses on how organizations navigate tensions between business and society.
• AA Andromachi Athanasopoulou is an associate professor at Queen Mary University of London and an associate fellow at the University of Oxford. Her research focuses on how individuals manage their leadership careers and make ethically charged decisions.

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