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Реферат Corporate Social Responsibility: Milton Friedman vs. Archie Carroll





sisted: There is only one and only one social responsibility of the business world - to use the resources and to be engaged in the activity directed on increase in profit in open free competition without deception and fraud .

A little that can threaten so to bases of our free society as a consent of leaders of corporations to assume other social responsibility, except that which consists in earning money for the shareholders raquo ;, - Milton Friedman noted. his opinion, social responsibility can be reduced to receiving by the profit company. For the modern company it is enough that its activity was coordinated with the general principles of environment protection, health and the safety, all other social programs only will lead to excessive expenses.position of corporate egoism is shared not only by the Nobel winner economist, but also by the marketing specialist Theodore Levitt. For the first time market forces in discussion of a subject of social responsibility of business mentioned Levitt. He wrote that one (main) responsibility of business - aspiration to material benefit, and another - following to elementary canons of daily civilized communication, such as honesty, integrity etc. But in the same time the development of schools, hospitals and social services, Levitt criticized as the concept which broad application conducts to death of capitalism, threat to business and the market as a whole.


3.2 Carroll s Approach to CSR

integrated approach was developed by scientists, L. Preston, J. Post, A. Carroll. Top integrated approach is treatment of A. Carroll who gave the definition of CSR in the future.Carroll, Corporate Social Responsibility is understood as compliance of activity of the organization economic, to the legal and discretionary (philanthropic) expectations shown by society the organizations during this period of time bit later Carroll specified the definition as follows: CSR represents multilevel responsibility which can be presented in type of a pyramid. Professing CSR firm has to seek to get profit, to execute laws, to be ethic, and also to be the good corporate citizen


Figure 1 Carrolls Pyramide Source: Nalband A. amp; Kelabi, S. (2014), p.236.

is necessary to distinguish approach of A. Carroll and M. Schwartz who offered system approach to CSR from many researchers of this phenomenon. CSR, from the point of view of A. Carroll, is public expectations in relation to the concrete organization in four various spheres: economic, legal, ethical and philanthropic.in the basis of a pyramid of Carroll economic responsibility means a direct obligation of the organization in the market as the producer of goods and services to satisfy any needs of consumers and, thus, to take and the profit.responsibility means need of law-abidingness of business in the conditions of market economy, compliance of activity of the company to those expectations of society which are recorded in rules of law. Ethical responsibility demands from business practice of the organization of compliance to those expectations of society which are not stipulated in rules of law, but are based on existing norms of morals.or discretionary responsibility induces firm to the charitable actions directed on assistance to needing, including at implementation of social programs.A. Carroll, developing the complex concept, offered the CSR model which included three measurements:

· corporate social responsibility - possible levels: economic, legal, ethical, discretionary;

· corporate social susceptibility - the range of changes from jet to the pro-active: jet, defensive, adaptive and pro-active;

· relevant public problems - environmental protection, safety product, discrimination, safety of workplaces, interaction with shareholders and so on.Carroll s Pyramid with M. Schwartz s support was transformed to the three-side model where as the main types of responsibility, were allocated economic, legal and ethical. In an ideal any organization has to combine all three spheres, the CSR real level of concrete firm depends on variations of these combinations.approach disproves possibility of treatment of responsibility only as categories of morals as includes the questions which are not assuming existence of consent/ disagreement of concrete firm and voluntariness of participation in them, and assumes at least two levels - obligatory and voluntary responsibility.development of idea of ??multidimensional CSR, continued with the model which were developed by S. Wartick and P. Cochran, where they put emphasis on the corporate social performance (CSP). Thus they leaned on Carroll s three-dimensional model, but to Carroll s each measurement they gave they own names: principles, process and policy.social activity rep...


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