Exploring CSR: Friedman, Porter, Kramer, Mackey & Best Model Analysis

This essay provides a comparative analysis of different perspectives on Corporate Social Responsibility (CSR). It begins by outlining Milton Friedman's view that a corporation's sole responsibility is to increase profits for shareholders, contrasting it with the traditional view of CSR as philanthropy. The essay then discusses Porter and Kramer's strategic CSR, which emphasizes creating shared value by aligning social responsibility with business opportunities. It also explores John Mackey's stakeholder interdependence approach, highlighting the interconnectedness of businesses with their communities, employees, and other stakeholders. Finally, the essay concludes by advocating for the conscious capitalism model as the most comprehensive approach to CSR, as it considers all stakeholders within the business ecosystem. Desklib provides access to similar solved assignments and past papers for students.

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

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strategy. In this, an organization will commit to social responsibilities so as to explore
opportunities that come with solving social problems.
Topic 3: John Mackey rejection of traditional CSR version
Equally, Mackey rejects the traditional version of CSR because it fails to capture the
element of interdependence. The traditional version of CSR only views an organization as
responsible to society and thus ignoring the fact that business operates in an ecosystem where
they depend on each other (Whittington, 2018). Hence, Mackey argues that businesses are
responsible for social needs from the perspective of stakeholder interdependence. In this,
Mackey believes in a business ecosystem that recognizes supportive communities, employees,
suppliers, life-sustaining ecosystem, investors as well as suppliers. In this situation, businesses
can respond to social needs.
Topic 4: Best model
According to me CSR within the conscious capitalism model is the best. This is because the
model encompasses all stakeholders within the business ecosystem.

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References
Elrick, J., Thies, C. F., & Lindsey, E. R. (2018). The Social Responsibility of Business Milton
Friedman Reconsidered. Journal of Markets & Morality, 21(2), 297-308.
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable
business (pp. 323-346). Springer, Dordrecht.
Whittington, J. L. (2018). Conscious Capitalism: Liberating the Heroic Spirit of Business, by
John Mackey and Raj Sisodia; and Uncontainable: How Passion, Commitment, and
Conscious Capitalism Built a Business Where Everyone Thrives, by Kip Tindell.