The socail responsibility of business is to increase its profit Essay

The socail responsibility of business is to increase its profit - Essay Example Social responsibility of a business means the responsibilities which the business must undertake for the betterment of the society. These are the policies and programmes which a business must pursue for the general upliftment of the society. The business must be concerned about the welfare of their customers, employees and the society on the whole.The idea behind assuming social responsibility by the business is to help for the rapid development of the society besides increasing the profits of the business. In the ancient times the businesses were concerned only about increasing the profits. But the modern business has to undertake certain social responsibilities also. The difference between traditional business and modern business is that the former is concerned only about economic and technical objectives while the latter extends it to social responsibilities as well.There are various authors who have supported the idea of assuming social responsibilities by the business. On the ot her hand some authors feel that the question of assuming social responsibility by the business falls outside the scope of business. Milton Friedmen is of this view.According to Friedmen the political principal capitalism will be affected if the business assumes social responsibility. In a capitalist economy the business firm has the complete freedom of using its available resources in a manner it wants. But if the business firms are compelled to assume social responsibility the political principle of capitalism will be violated.... The owners will have main objective of maximising the profit. Therefore the managers have no right to direct the resources of the firm for any other purpose other than for the purpose of increasing the profits. There are various constraints which blocks a manager from assuming social responsibility. The corporate managers are trained to increase the profits and they do not have any idea about the manner in which they can improve social well-being of the people. Milton Friedmen feels that the principle of taxation would be violated if the business undertakes social responsibility, because the business will be using the money of the people for undertaking some measures for the betterment of the society. And this is similar to the taxes imposed by the government. The taxes imposed by the government and the money which the business use for undertaking social responsibility are similar because both the government and the business are using the money of the citizens for the benefit of the society. The government asks taxes from the public only for undertaking some social functions. And the right of taxes is given only to the government. So the business has no right to take money from the public for undertaking social works. If the people feel that they should contribute something for the betterment of the society they can use their own resources for undertaking these works. Friedmen believes that if we bring the concept of social responsibilities into the business it will amount to bringing socialism into the business which will be against the principle of capitalism or a free-enterprise economy. In a free enterprise economy the business firm has full freedom to use the available resources of the economy for maximising the profits. Only in a socialist