The Social Responsibility of Business is to Increase its Profits

The social
responsibility of
business is to increase
its profits

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................8

INTRODUCTION
Social responsibility of business organisation can be define as those function which are
related fulfilment of ethical responsibility of business organization in relation to environment,
society, culture and many other factors in business (Ahenkora, Banahene and Quartey, 2016). In
current project, is consist and essay on “The social responsibility of business is to increase its
profits”. There is close discussion about various theories which will helps in understanding this
statement.
MAIN BODY
Profit always act as an prime motive of organisation which is essential for firm to achieve
its business objectives and preform its function in effective for current as well as future period.
For gaining profits, organization has top making number of efforts such as selling goods and
services, using promotion activities, innovation and many other. Instead of all these functions
and activities, there is one more activity which is useful for business ventures, this is social
responsibility of business towards profitability in firm (Camilleri, 2016).
There are number of system and theories which are supporting that social responsibility
of business is to increase its profits. The Friedman doctrine, is based on this system which
assumes that stake holders are prime for organisation and its is social responsibility of firm to
manage its stakeholders to get regular profits. This is normative theory which is based on
concept that hat a firm's main responsibility is to its shareholders. Herein, author in this theory is
also focusing on activities of organisation where its states that shareholder primacy
conceptualization use to view shareholder as system engine of the firm and act as an group for
which the firm is socially responsible (Cortina, 2017). This doctrine is followed by number of
firms in business world but also face criticism in some situation.
The concept of The social responsibility of business is to increase its profits get its
existence in 1970s, when Friedman introduced his theory in The New York Time. This theory
was titled as “A Friedman Doctrine: The Social Responsibility of Business is to Increase Its
Profits”. The main motive behind publishable of this theory by author is to show importance of
shareholder in business organisation. For this, he argues that there is no other social
responsibility of organisation other than its stakeholders. Further, he elaborated that, In relation
to private-property system, free-enterprise and a corporate executive it is based on owner of