Criticisms of Corporate Social Responsibility

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Criticisms of Corporate Social Responsibility

Neil chamberlain, a Corporate Social Responsibility author and critic, concludes that every business's social responsibility movement is an effect 'trapped' in the business system itself. The dream of socially responsible corporation can transform our society is illusionary. The critics reason for failure of corporate social responsibility argue for corporations too risk averse and redirected management time and financial resources away from the corporation's core economic mission. The companies reflect two misconceptions:

  1. The people responsible to manage companies only care about one purpose: maximizing profit. The managers have diversified preferences to promote civic purposes. Their ability to achieve non-financial objectives are restrained by competitive pressures unfaltering their personal commitments.

    Eventually, the emergence of social entrepreneurship has made companies to achieve social or environmental goals. These companies that rule on social responsibility manner have proven to be profitable reflects that firms can possibly achieve both financial and non-financial objectives. On the same line, some consumers, employees and investors also have objectives other than financial self-interest.

  2. It cannot be a business's financial interest to act responsible. Companies have been pressurized by activists, consumers, employees and investors who make significant changes in corporate policies.

    These company's managers politely succumb to these pressures and stop proliferating the social responsible activities. The civil regulation changes the strategies of the firms to pursue increased shareholder value.

  3. Corporate Social Responsibility is seen as catering to public relational purposes. The corporations believe in using it as a means of preventing governments from implementing effective regulations.

    Many people and groups are skeptical in relation to corporate responsibility as conventional public relations with the aim of distracting society converting to an economic system grounded in the ecological and social realities. The critics also blame corporate responsibility as distracting business managers from securing profits for the owners of corporations.

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