Corporate Social Responsibility

Running Head: CORPORATE SOCIAL RESPONSIBILITY 1
Corporate Social Responsibility
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CORPORATE SOCIAL RESPONSIBILITY 2
Corporate Social Responsibility
Topic 1: CSR by Milton Friedman
Milton Friedman rejects the traditional version of corporate social responsibility that
expects an organization to operate as a philanthropist (Elrick, Thies, & Lindsey, 2018). The
traditional version of CSR believes that a corporation has a mandatory role to advance social
justice and adhere to moral principles of care. In other words, the traditional version believes that
corporations operate to serve society even if they do not obtain value from it. Friedman rejects
this version of CSR on account that corporations’ sole responsibility is to fulfill the demands and
expectations of their shareholders. Based on Friedman’s belief in what CSR is, it therefore,
means that corporations’ CSR is to make profits for shareholders. Ideally, Friedman’s school of
thought completely fails to recognize society and social justice as fundamental determinants of
organizational success.
Topic 2: Porter and Kramer
Porter and Kramer reject the traditional version of CSR on account that it does not
incorporate business strategy (Porter, & Kramer, 2019). These scholars castigate the traditional
version of CSR from value proposition-oriented perspective. That is to imply that both society
and corporations must benefit, but the traditional CSR version forces organizations to be socially
responsible even if they do not benefit from it. Nevertheless, Porter and Kramer suggest strategic
CSR where businesses will be socially responsible based on the opportunities (Porter, & Kramer,
2019). In other words, Porter and Kramer believe that CSR should be implemented as a business