Milton Friedman is rumored to have said: “The business of business is business.” Why would a free-market economist have made such a statement? Does such a philosophy have implications for business ethics?
Milton Friedman stated that “the business of the business is business.” There are different meanings in the business terminology, which can be derived from this particular statement. However, specifically, this statement supports the argument that every business is triggered by the corporate social responsibility in the market or an economy. It has been revealed that the firm’s initiative regarding the social responsibility can lead towards the creativity, improvements, innovation, and competitive advantage. In this modern and dynamic business era, it is necessary for firms to integrate with the society effectively to perceive these issues Understand the social perception and make decisions to provide benefit to the society is a good approach, which justifies this statement. It is a fact that there are many social issues, which are peripheral to the management challenges. Making strategies after deriving the social issues and challenges can make the business successful, and it seems the actual business, to be conducted by many organizations. This philosophy has some ethical implications, as management of the company needs to go beyond some business laws to think bigger. For Instance, a policy, which is allowed by law, can be prohibited to prevent the society from any harm. Despite having some opportunities for various business benefits, the society consideration is a much bigger decision for the company. For Instance, the most important thing for the company is to emerge in the society with some ethical or moral values. The company may develop a responsible human capital, which can enhance the visibility CSR contradictions. People are not to be exploited for personal purposes, as all actions ate traits are to be linked to the social values. The corporate social responsibility has been emerged a key to do business, and for a long run, it has enabled the sustainable competitive advantage for many firms.
Based on your readings in the book, your answer to the previous question, and the Porter/Kramer reading, what (if anything) does business owe society?
The business owes the society in many ways. In today’s business, there is a need to create a good relationship between business and society. The management of the company may have different human and financial resources to increase the profitability and make the share in many regions. However, the relationship with the society comes into the life when activists share the burden of social issues large organization. Instead of just focusing on sales and profitability in the region, the focus should also be on the social issues and strategies to deliver something extra. Remarkably, due to these intentions, the company can be able to gain and sustain the sustainable competitive advantage. It also compels many organizations to explore some new opportunities, and accordingly, some strategies. Thus, relationship with society is a big thing, which enables the business to owe the society. Furthermore, the second aspect is the voluntary perception about the corporate responsibility. However, with the passage of the time, it has been revealed that CSR initiatives have been evolved to trigger by the society. For Instance, in the internal business operations, the management has to deal all employees according to the social norms to contribute to the social responsibility process. If a firm does not contain a good behavior with internal key stakeholders such as employees, the external key stakeholders such as customers may be converted. The example, if the Nike Company is in the limelight, as due to unfair labor practices, customers boycotted the products in New York in the early nineties. Moreover, the business owes the society through making long-term production and environmental decision. When starting a business, the well-defined environmental policy must be presented, which may prevent the pollution and other harms in the society. It depends on the nature of the business decision making and strategic planning process, which define ways for the company to owe the society in an effective and lucrative manner.
How should it be enforced (government, industry standards, no enforcement at all, etc.)?
The strategy and society integration can be enforced through creating an effective relationship between the business and society. As far as the enforcement in industries is concerned, it seems worthy to have a successful organization with the healthy society. For Instance, at the industry; level, it has been revealed that large international firms are provided equal work, health and educational opportunities for employees. These are several societal needs, which are to be fulfilled in the organizations as well instead of just taking work from them. Corporations have to enforce the CSR initiatives or society and strategy integrations through making any other preferences, which are beyond the profitability. At the government level, the companies may not sharp in the different business traits to increase the profitability. However, the may be dominant in the social contributions. Thus, through changing the priorities, the difference can be made. For sustaining in this dynamic business era and enhance the visibility of future mobility, the society and strategy integration should be moderate, as ultimately, there is a need of some capital to be triggered by the social issues, challenges, and responsibilities. The management has to consider the competitive context in the enforcement process. The company has to define the several business issues, which can be addressed. Every business may have a limited capacity, and defining or identifying the specific issues is a good approach to address its effects in the context of competitiveness, the firm can choose a social issue, which is a prominent need the corporate level initiatives. If this enforcement process contains the competitive context, the chances of success can be ensured. As both a, corporate and government level, these aspects regarding the enforcement can be used.
How do you think CSR translates to firm performance?
Top benefits that the company may have through the implementation of corporate social responsibility are the innovation, improvements, and sustainable competitive advantage. However, beyond these benefits, the corporate social responsibility enhances the perforce of the firm. For Instance, it forces the firm to enhance the research and development process to explore serious social issues and make hey business decisions, which can be related to the different social groups and communities. The corporate social responsibility enables the company to increase the personal and professional development. When an employee takes part in the social activities, initiated by the company, he may accelerate the learning experience. Especially, when operating in the market-oriented business modern in the competitive industry, the chances of performance improvements are quite high. When integrating with the social issues, the company can improve the process to alter some outputs. For Instance, if an automobile company intends to make cars, which ensure the passenger safety, the management has to alter or improve the process. Thus, the intention is to integrate with the social value. However, it also helped to improve the process. As far as the marketing operations of the firm are concerned, the performance can be improved through the competitive positioning. The company may depict some advertisements, which express some CSR initiates for sustaining the better image and reputation.
For accelerating the future mobility of the company, there is always a need for strategy and social integration. “The business of business is business “is a good statement, which forces the business professional to think bigger in the competitive industries. Corporate social responsibility is the need of every business in today’s world, and for a long run, the business can be sustained due to some effective, workable and lucrative initiatives. Social issues do not create an impact on the long-term competitiveness of the business. Though, the need for integration is worthy to set a direction.
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