The major arguments for the assumption of social responsibilities by business are.
1) Public expectations: Social awareness of the business has been increased a lot since the 1960s. Public opinion in support of business need social as well as economic goals is significant as another goal.
2) Long run profits: A socially responsible business is to have more and secure a long run profits. This is the normal result of the better community relations and improved business image that is the way of having a responsible.
3) Ethical obligation: A business company can and should have a responsibility of the employee. Business Company should be more socially responsible because responsible of their own actions are right for their own action.
4) Public image: Firms are looking to enhance their public image and to gain more customers, the better employees, can access to MONEY markets, and other benefits that they should be getting. Since the public considers social goals to be important, Business Company can make a favorable public image by bringing in social goals.
5) Better environment: The better way of having a good environment needs Involvement by business that can solve difficult social problems, from that creating a better quality of life and a more desirable community in which to attract and hold skill of employees.
6) Discouragement of further government regulation: The Government regulation adds economic costs and restricts management’s decision flexibility by becoming socially responsible, the business that can expect less government regulation.
7) Balance of responsibility and power: The Business that has a large amount of power in society. An equally large amount of responsibility is needed to be in balance. When the power is significantly greater than responsibility, the imbalance encourages irresponsible behavior that works against the public good.
8) Stockholder interests: The Social responsibility will improve the price of a business’s stock holder in the long run. The STOCK MARKET will see the socially responsible company as not worry about the open of the public attack. Therefore, it will award its stock a higher price earnings ratio.
9) Possession of resources: The Business that has the financial resources, also a technical experts and managerial talent is to provide support to public and charitable projects that need assistance.
10) Superiority of prevention over cures: Social problems must be dealt with at some point if any problem has arisen. Business should act on them before they become serious and will lead to a costly, to correct and take management’s energy away from accomplishing its goal of production goods and services.
The major arguments against the assumption of social responsibilities by business are:
1) Violation of profit maximization: This is the real and the classical viewpoint. Business is most socially responsible when it is strictly about its economic interests and leaves other activities to other institutions.
2) Costs: Many of socially responsible of the activities do not pay their own way. Someone will have to pay these costs. The Business must absorb all of these costs or pass them on to consumers in higher prices.
3) Too much power: The Business is already one of the most powerful institutions in our society with too much power. If it pursued social goals, it would have even more power. So this prove that Society has given business enough power.
4) Lack of skills: To look out for the abilities of business leaders are oriented primarily toward economies. The Business people are poorly qualified to cope with social issues so this will need improving.
5) Lack of accountability: Political representatives pursue social goals and are held responsible for accountable on their actions. This is not the case with business leaders. There are no direct lines of social accountability from the business sector to the public.
6) Lack of broad public support: There is no broad that have approve from society for business to become involved in social issues in anyway. The public is divided on the issue this has become a lack of broad support. In fact, it is a topic that usually becomes a heated debate. Actions must be taken under such divided support and are likely to fail.