Corporate Social

Responsibility
CHRISTOPHER S. DANIELS
COLUMBIA SOUTHERN UNIVERSITY
23 DECEMBER 2014

Summary of Milton Friedman

Milton Friedmans theory on the corporate social
responsibility of business is traditional in the sense that the
primary objective of businesses should be to maximize
profits. In doing this businesses should not focus on the
social goals, such as: reducing unemployment or reducing
pollution. Friedmans theory on these social responsibilities
associates business that are focused on these social goals as
spending the shareholders money for the general social
interest (Wheelen & Hunger, 2010, p. 72).

Summary of Milton Friedman

There is one and only one social responsibility of business- to use its
resources and engage in activities designed to increase its profits so
long as it stays within the rules of the game, which is to say engages in
open and free competition without deception or fraud. (Friedman,
1970, para. 30)

By making the social objectives a primary focus for a business

organization the impact could ultimately hurt the society that the
business is trying to help.

Summary of Archie Carroll

Archie Carrolls theories on the social
responsibility of businesses depicts that
business have an inherent responsibility
within the societies that are members of to do
no harm. Controlling the manner in which
the business operates in order to generate
profits so that the society does not suffer
from these actions is a main stack. Profits
are merely a means to an end, not an end in
itself (Wheelen & Hunger, 2010, p. 72).

Must Do

Have to Do
Economic

Legal

Discretionary

Ethical

Might Do

Should Do

Source: Adapted from Wheelen, T., & Hunger, J. (2010).

Strategic management and business policy: Achieving
sustainability (Custom ed.)

Summary of Archie Carroll

Economic

The business
must make a
profit.

Legal

The business
must operate
under all
applicable laws

Ethical

Source: Adapted from Wheelen, T., & Hunger, J. (2010).

Strategic management and business policy: Achieving
sustainability (Custom ed.)

Fulfill the
obligations that
society as place
as a priority

Discretionary

Actions that are for

the benefit of the
society but, have
not been identified
as a priority

What Principles Would I

Employee
Corporations do have a responsibility to the communities that they operate
in. These responsibilities are limited; the business should not be expected
to fix or subsides the community.
The business should be profit focused as long as, the increasing of profits
does not harm the community. The business should not be obligated past
that point.
The business should look at finding win-win situations for which they can
help the community and have a possibility of a return on investment. An
example of this is outreach programs that promote the skills the business is
seeking to employ.

Where is Friedmans Principle

Applied
Kmart a discount retail store which
has 1,150 locations across the United
States with $13.2 billions of revenue
in 2014 down 9% from the previous
year. In order to increase profits
Kmart is staying open in some cases
24 hours a day on holidays.

Source: www.vault.com

This decision has been met by the

public with resistance and many
potential customer have spoken out
using social media. The primary
complaint is that Kmart is more
focused on profits than taking care
of its employees.

Where is Friedmans Principle

Applied
McDonalds a fast food chain is
consistently marked as violating
corporate social responsibilities.

Serving unhealthy food and not properly

informing its customer of the true
content of the products. This has been
an ongoing battle the organization has
faced; ultimately profits are more
important that the health of its
customers.

Source: www.vault.com

McDonalds posted a list of holiday

saving for its employees whom make an
average of $8.00 an hour. The list
included returning presents they
receive, selling personal possessions,
and shopping at thrift stores. Instead of
providing employees with opportunities
to grow they have instead; help to
continue the poverty that many of their
employees struggle with.

Where is Carrolls Principles

Applied
Microsoft

Identified that growing gap in the opportunities that youth have to learn
about technology. In order to address this gap Microsoft create YouthSpark
with a goal of reaching 300 million children in a three year span.
Computer
Science
Education
TEALS

Imagine Cup
DreamSpark

Skype in the
classroom

Office 365 for

EDU

Source: Microsoft Citizenship Reporting

BizSpark

YouthSpark

YouthSpark
on
Globalgiving

Where is Carrolls Principles

Applied
Walt Disney corporation
focuses on providing for the
greater social well being. Walt
Disney corp. does this through
the use of many programs.
These programs cover a variety
of areas and would typically
fall into the discretionary
category of Carrolls principles.

Source: thewaltdisneycompany.com

Live
Healthier

Strengthen
Communities

Conserve
Nature

Think
Creatively

REFERENCES

Friedman, M. (1970, September 13). The Social Responsibility of Business Is to

Increase Its Profits. New York Times Magazine, pp. 126-127.

Wheelen, T., & Hunger, J. (2010). Strategic management and business policy:
Achieving sustainability (Custom ed.). Upper Saddle River, N.J.: Prentice Hall.

KMART CORPORATION. (n.d.). Retrieved December 24, 2014, from http://

www.vault.com/company-profiles/retail/kmart-corporation/company-overview
.aspx

Microsoft Citizenship Reporting | Download 2014 Citizenship Report. (n.d.).

Retrieved December 24, 2014, from
http://www.microsoft.com/about/corporatecitizenship/en-us/reporting /

FY13 Performance Summary. (n.d.). Retrieved December 24, 2014, from http://
thewaltdisneycompany.com/sites/default/files/reports/FY13PerfSummary.pdf