Freeman vs Friedman: Ethics, Profit, and CSR Analysis of Sainsbury's

This essay provides a detailed comparison of Freeman and Friedman's theories on corporate social responsibility (CSR), highlighting their differing perspectives on stakeholder versus shareholder value. It delves into Sainsbury's CSR program, evaluating its market record, specific projects, and overall implications. The essay also offers a personal evaluation of Sainsbury's CSR efforts, arguing for a balanced approach that considers both shareholder development and broader social responsibility. The analysis concludes that CSR is crucial for building efficient commercial operations and fostering social consciousness within a company.

Ethics and CSR

Contents
Introduction................................................................................................................................3
Main Body..................................................................................................................................3
Task 1.........................................................................................................................................3
Essay topic: Explain the difference between Freeman and Friedman theories and if you
believe it is ethically correct just to focus on profits if you abide by the laws......................3
Task 2.........................................................................................................................................5
Description of company and its CSR programme..................................................................5
Sainsbury’s CSR record as evaluated by the market.............................................................5
Sainsbury’s CSR project and their implications....................................................................6
Personal evaluation over Sainsbury’s CSR efforts................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

Introduction
In order to handle numerous operations of a firm, business management is regarded a
significant role of a corporation. Management is critical to the smooth operation of a firm.
The two key duties that management of a corporation does are allocating financing and
growing the organization's profitability (Rendtorff, 2022). This project entails a variety of
business duties in order to get a significant competitive edge in the marketplace. In order to
enhance numerous aspects, the project contains an essay on a company's social responsibility.
In order to assist the broader public, the initiative also offers a full explanation of corporate
social responsibility (Lereculey-Péran, Lombarts and Brannon, 2022).
Main Body
Task 1
Essay topic: Explain the difference between Freeman and Friedman theories and if you
believe it is ethically correct just to focus on profits if you abide by the laws
The debate between Freeman and Friedman with regards to CSR under business
ethics has been going on for a long time. R. Edward Freeman and Milton Friedman explored
and highlighted almost several possible views on what a firm's obligations should be in their
conceptions of how a business should run. Freeman supports the Stakeholder Theory,
believing that anybody or any group with a "stake" in the firm should be involved in the
company's activities and choices. Milton Friedman stands in the opposite corner of the ring,
believing that a firm is only responsible for those who really own shares in it the owners, or
shareholders. Through the debate Freeman considered wide range of individual under
stakeholders of the business. With its inclusion wide range of individuals were being taken
into consideration that were relative to the business working and associated business
environment. However, on the other hand Friedman took emphasis of consideration on
dedicating attention towards involvement of shareholders only when following CSR approach
of the business firm. It was being said that individuals those with high interest in working of
the firm should be considered worthy to invest efforts and relative resources for the business
firm. The CSR approach of the firm should only consider shareholders while developing
strategic CSR plans and distributing profit margins to those individual groups only.
According to Edward Freeman, a firm's stakeholders are the individuals who are most
affected by the company and its operations. This increases the company's engagement and

oversight of various aims and objectives from the standpoint of diverse stakeholders. In
recent years, numerous firms have employed the Freeman theory to assess the relevance of
shareholders. Friedman and Freeman have disagreed over how to maximise profits for
stakeholders and shareholders such that they are well-cared for. The greatest method to care
for shareholders, in their perspective, is to give attention to other stakeholders such as
suppliers, consumers, communities, workers, and shareholders. Friedman was an outspoken
opponent of social activities. Rather than corporate social responsibility, there must be
corporate stakeholder responsibility (Koven and Perez, 2021).
Friedman, on the other hand, believes that businesses are obligated to grow
profitability and boost shareholder happiness. The shareholders are a valuable resource for
the firm, and they should be treated as such. If a firm is actively involved in generating
resources to meet the needs of its shareholders, it will grow and expand in the market.
Friedman's viewpoint is regarded as a key strategy that aids in the creation of critical parts of
a company's competitive power. One of the most important elements of a firm is the
development of its internal environment. One of the most important roles of a firm is to
examine briefly many advantages of maintaining an internal environment for development
and expansion (Ernst and Haar, 2022). In order to establish diverse sorts of ethics in business
operations, a company organisation must also consider social values. Society also has a
significant impact in the development of numerous social implications of traditions that must
be considered by business. One of the most important roles of a company's board of directors
is to focus on key goals and policies that need to be created. A corporation can set goals and
objectives at the start of the fiscal year and work toward them with the help of laws and
regulations. In order to focus on essential benefits, different types of firms in the economy
focus on ethical aims and policies of a corporation. One of a company's most important roles
is to thoroughly examine the many aspects that contribute to good operations management.
Social values and societal welfare are two of a company's core goals in the business sector.
This is also one of a company's primary functions: to thoroughly examine various
competitive tactics in order to focus on ethical ideals and progress (Lynn, 2021).
I agree with both Friedman's and Freeman's points of view on development and caring
for its stakeholders. To increase the company's worth, all big enterprises in the worldwide
and national markets should focus on shareholder development. In order to expand in the
marketplace, I advise a firm to analyse the wants and demands of various shareholders. I
realise that in order to assist the interests and development of investors, a firm should have
expert management and departments. For long-term corporate success, all significant

corporations should build a strong strategy and planning framework. I also believe that a
company organisation should concentrate on important objectives and policies and use
planning and strategy to attain them.
Task 2
Description of company and its CSR programme
Overview of company
Sainsbury's is a worldwide corporation that operates as a supermarket chain in the
retail sector, providing vital products or services to a variety of clients. The firm Sainsbury's
was formed in 1869 and is headquartered in London, United Kingdom. In order to reach
numerous aims and objectives, the firm performs duties and responsibilities connected to
corporate social responsibility (Knudsen and Moon, 2021).
Sainsbury’s CSR programme
Corporate social responsibility is a significant role of a firm that aids in the
development of society's weakest sectors. In order to build successful operations and
functions, the organisations focus on CSR-based techniques. Corporate social responsibility
is also seen as an important instrument and approach for developing socially responsible
company activities. CSR is a key obligation of a business in order to carry out big and
particular social development activities. Sainsbury's contributes 2% of its profit every year as
part of its corporate social responsibility efforts to build goodwill and a track record strategy
in the marketplace. CSR-based rules and techniques are effective in boosting a company's
competitiveness over a specified period of time (Alghababsheh and Gallear, 2022). Corporate
social responsibility is primarily used as a promotional tool to strengthen a company's market
position. Sainsbury's practises corporate social responsibility in order to achieve numerous
social welfare aims and objectives. CSR should not be viewed as a promotional strategy;
rather, it should be viewed as an ethical aspect of a company's operations. In recent years, all
large corporations have placed a strong emphasis on market expansion and growth. There are
several large corporations who have their own legal department dedicated to developing
corporate social responsibility procedures. The marketplace's major players concentrate on
maintaining a consistent level of operations while pursuing growth through CSR-based
strategies.
Sainsbury’s CSR record as evaluated by the market
According to GlobalData, (2019), Sainsbury's is always engaging in active corporate
social responsibility. Sainsbury's employees also take an active role in operating based on

corporate social responsibility for targeted development and growth. Management of several
organisations has recently praised CSR for winning the confidence and faith of the entire
population in a business. Governments from several nations have applauded CSR-based
operations in the economy for helping to attain societal goals and objectives. Corporate social
responsibility is also critical for a company's ability to grow functions in an ethical and
structured manner (Mook and Overdevest, 2021). It was classified as one of the worst
lawbreakers on environmental and social issues in 2004 and has been heavily condemned for
its corporate social responsibility (CSR) by independent firms. Sainsbury's has been voted the
most responsive corporate to society's major concerns. In order to build successful aims and
objectives, the company also follows specific ethical activities connected to corporate
responsibility. Sainsbury's has also made a donation to the British Red Cross Society of about
310000 pounds (Sustainability can regenerate Sainsbury’s, 2019).
Sainsbury’s CSR project and their implications
Sainsbury's business strategy is focused on long-term growth and focuses on the key
goal of producing or providing value for consumers in order to generate loyalty. The
company is deeply devoted to the community. It has established a number of long-term
objectives, including decent job and economic growth, zero hunger, high-quality education,
and many others. It is dedicated to developing healthy, sustainable goods, as well as
incorporating sustainability into its packaging and opposing food waste. It has a number of
charitable commitments in order to contribute to society (Silva, 2021).
Sainsbury's constructive efforts make a great impression on shareholders, which aids
in long-term success. Sainsbury's shareholders receive a good dividend and consistently
provide positive comments. Sainsbury's shareholders are also pleased since the firm follows
professional procedures in developing plans and strategy. When shareholders respond
positively, a company's goodwill grows along with its market share. It is critical for the firm
to meet the wants and demands of consumers in order to boost shareholder focus.
Personal evaluation over Sainsbury’s CSR efforts
In my opinion, a corporation should devote more resources to analysing numerous
goals and objectives and implementing the remainder of the CSR processes. In order to
analyse numerous aims and objectives, all businesses in the marketplace need enlist the help
of strategic management. I believe it is critical for a business to analyse both negative and
positive variables that are beneficial to the company's success (Nazaripour, 2021). It is also a
critical responsibility of a corporation to concentrate on analysing numerous goals and

objectives based on various aspects. The criticism, in my opinion, is inappropriate because
corporate social responsibility is a big form of activity that assists a firm in delivering many
practises. Corporate social responsibility-based operations are a moral and legal way of
allocating a significant portion of profits to social improvement. The government's economic
goals are also met with the help and support of functions built with CSR's assistance.
Business social responsibility should be encouraged by management in the corporate sector in
order to accomplish the majority of goals and objectives (Fernandes, Suleiman and Wilson,
2021).
Conclusion
From the analysis of the above-mentioned report project, it can be concluded that
corporate social responsibility is one of the most important functions of a company in order
to build efficient commercial operations. One of the main aims of a company's management
is to teach employees on a variety of topics in order to improve CSR. According to the above-
mentioned paper, it is critical for a firm to focus on raising social consciousness, which is a
significant duty of management. The preceding discussion also discusses the importance of
stakeholders in the evolution of a corporate organisation through time.

References
Books and Journals
Alghababsheh, M., & Gallear, D. (2022). Social sustainability in the supply chain: a literature
review of the adoption, approaches and (un) intended outcomes. Management &
Sustainability: An Arab Review.
Ernst, R., & Haar, J. (2022). Shareholders vs. stakeholders. In From Me to We (pp. 41-59).
Palgrave Macmillan, Cham.
Fernandes, R. R., Suleiman, N., & Wilson, D. I. (2021). In-situ measurement of the critical
stress of viscoplastic soil layers. Journal of Food Engineering, 303, 110568.
Knudsen, J. S., & Moon, J. (2021). Corporate social responsibility and government: The role
of discretion for engagement with public policy. Business Ethics Quarterly, 1-29.
Koven, S. G., & Perez, A. (2021). Corruption and Business Ethics. In Oxford Research
Encyclopedia of Business and Management.
Lereculey-Péran, D., Lombarts, A., & Brannon, D. W. (2022). An exploration of female
underrepresentation on executive boards in the Dutch hotel industry through an
ethical lens. Journal of Hospitality and Tourism Insights.
Lynn, A. (2021). Why “doing well by doing good” went wrong: getting beyond “good ethics
pays” claims in managerial thinking. Academy of Management Review, 46(3), 512-
533.
Mook, A., & Overdevest, C. (2021). What drives market construction for fair trade, organic,
and GlobalGAP certification in the global citrus value chain? Evidence at the
importer level in the Netherlands and the United States. Business Strategy and the
Environment, 30(7), 2996-3008.
Nazaripour, M. (2021). Accountants and the Increase in Water Productivity: Exploratory and
Confirmatory Factor Analysis. Iran-Water Resources Research, 17(3), 215-230.
Rendtorff, J. D. (2022). Managing for the Common Good: Rethinking the Business
Corporation Beyond Profit-Maximization. In New Economies for Sustainability (pp.
177-196). Springer, Cham.
Silva, S. (2021). Corporate contributions to the Sustainable Development Goals: An
empirical analysis informed by legitimacy theory. Journal of Cleaner
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Online
Sustainability can regenerate Sainsbury’s, (2019). [Online]. Available at:
<https://www.retail-insight-network.com/comment/sainsburys-sustainability-2019/>