Score: 22/25

CSR, which stands for "Corporate Social Responsibility," refers to a company's actions and
policies intended to positively influence society and increase profits. CSR is a crucial component
in business, much like other conventional criteria like price, quality, and delivery, and it is
included in the business's strategy.
There are four arguments related to CSR:
- Ethical argument: According to this argument, companies have a duty to take action in
the interests of society. However, determining an ethical act is unspecified. In
utilitarianism, an activity called “ethical” when produces the most significant outcome for
the major, even if it goes against the rules. For example, some insurance agents arbitrarily
use their commission to reduce customer insurance fees. Although this action is against
insurance law, it is regarded as ethical because it benefits customers. On the other hand,
when an action is motivated by moral principles regardless of the outcome, it can also be
considered ethical.
- Moral argument: The give-and-take interaction between business and stakeholders,
including society, is emphasized in this argument. Without societal support, companies
cannot succeed. Therefore, doing business involves more than just making a profit; it also
involves developing practical values for society, such as offering top-notch goods and
employment chances.
- Rational argument: This argument states that firms should try to understand how
stakeholders’ expectations and societal norms are changing. By taking CSR actions,
businesses will be able to identify the demands of their stakeholders and develop
appropriate strategies that will help them prevent issues in the future.
- Economic argument: Understanding stakeholders’ demands will help companies maintain
positive connections with them, extend brandings, and provide additional opportunities to
earn profits. Therefore, it can be concluded that CSR is a strategy for aligning business
operations with stakeholders' changing values and expectations.
These four arguments are interconnected and collectively have a significant impact on CSR. But
moral arguments are the cornerstone upon which the other three components might be built.
Businesses comply with the remaining arguments when they operate ethically and make society's
sustainability their primary objective for growth.