On first glance, many of the activities undertaken by conscious businesses and corporations adopting CSR appear similar. OK, certainly an impressive aspiration, but how does the Conscious Capitalism philosophy have practical applications in running a business? At its heart, Conscious Capitalism is a business model where interests of all major stakeholders employees, customers, suppliers, communities, investors and the environment are served, and the ultimate aim is to maximise shared value for all not just maximising the value for one group, ie shareholders. Conscious capitalism is embedded in the core structure of a business which, in turns, influences leadership, decision making, business strategy, processes, recruitment and performance management, customers service practices, and so on.
Though philosophers have discussed abstract ethical dilemmas for most of recorded history, there appears to be no universal answer to resolve ethical problems.
The varied works of philosophers have led to the development of ethical frameworks that may be applied to any particular situation. The answer to an ethical question may differ depending on which moral framework is used. For this reason, taking complex and abstract ethical theories and applying them to the decision-making processes of company directors can lead to unresolvable arguments in boardrooms, restaurants, shareholders meetings, scholarly journals and, of course, the media.
Milton Friedman proposed a guiding principle for business ethics in a New York Times article, provocatively titled: This statement raises the question of whether directors can act in any way to increase profits.
Although Friedman is clear that directors as agents of the business have to play within the rules of the game, this still leaves room for unethical behaviour. Does this mean that directors can act in any way to increase profits? A further question raised by his article is whether corporations should engage in socially responsible activities.
It will be argued that directors cannot act in any way to increase profits and that corporations should engage in socially responsible activities as it can be shown that they at least have an indirect positive effect on organisational performance.
Milton Friedman and Corporate Social Responsibility Friedman argued for a direct form of capitalism and against any activity that distorts economic freedom. Friedman thus argues that corporations should focus on those activities that are causally related to company profit, effectively excluding charitable activities that do not directly generate revenue: Such giving by corporations is an inappropriate use of corporate funds in a free-enterprise society.
Another principle expressed by Milton Friedman is the need to stay within the rules of the game, explicitly avoiding deception and fraud.
Conscious Capitalism differs from the traditional understanding of Corporate Social Responsibility (CSR). Moving beyond implementing a local community program or creating a company foundation, a conscious business focuses on an ongoing process of self-awareness. Please answer only 1 of the following 6 questions with a ( minimum to 2 page maximum) answer in Microsoft Word. It can be a bit over 2 pages if need be. Keep the mind set of corporate social responsibility and opinions should. Besser concludes her book by addressing the potential threats to business social responsibility posed by globalization and recommends steps to enhance socially responsible capitalism. Anybody interested in the complex interaction of businesses and the communities they reside in will enjoy reading this positive revisitation of the mutually Reviews: 1.
This principle is further clarified when he writes: This quotation implies that Friedman does not proclaim that directors can act in any way to maximise profit as they have to abide by the law and follow ethical custom.
He, however, excludes explicitly charitable activities as they do not directly contribute to profit. Friedman argues that it is not appropriate for a corporate executive or director to embark on socially responsible programmes because there is little incentive for prudent expenditure, mainly when one is spending money owed to the shareholders through dividends.
Directors and executives of a corporation are employed to achieve this sole objective. The only moral responsibility of directors and executives is to meet shareholder expectations, which is to maximise their return on investment.
Friedman interprets this principle as the corporation with the highest return to shareholders.
When the issue of an electric company that cut supply to a customer for non-payment upon which the customer died as a consequence was presented to Friedman, he applied the Kantian view to justify their actions. He argued that a utility company that does not cut off electricity to non-paying customers would perish as there is no reason for customers to pay their bills.
He considers this as ethical because the directors have a moral duty to ensure the survival of the corporation. The socio-economic view is a utilitarian argument as Frederick Conscious Capitalism differs from the traditional understanding of Corporate Social Responsibility (CSR).
Moving beyond implementing a local community program or creating a company foundation, a conscious business focuses on an ongoing process of self-awareness.
Oct 24, · The Social Responsibility of Business. business is business. “There is one and only one social responsibility of business,” the economist Milton Friedman famously wrote in “Capitalism.
As part of the Conscious Capitalism Conference series at the Center for Ethics and Social Responsibility in CU’s Leeds School of Business, in partnership with the College of Media, Communication and Information, the summit will be one-day event in November , showcasing the strength and diversity of shared ownership models in the state.
Please answer only 1 of the following 6 questions with a ( minimum to 2 page maximum) answer in Microsoft Word. It can be a bit over 2 pages if need be. Keep the mind set of corporate social responsibility and opinions should. Healing Capitalism: Five Years in the Life of Business, Finance and Corporate Responsibility [Jem Bendell, Ian Doyle] on urbanagricultureinitiative.com *FREE* shipping on qualifying offers.
The global response from business to social and environmental issues during the past decade has created a corporate responsibility urbanagricultureinitiative.coms: 5.
The first step toward clarity in examining the doctrine of the social responsibility of business is to ask precisely what it implies for whom. Presumably, the individuals who are to be responsible are businessmen, which means individual proprietors or corporate executives.