Reference no: EM132289254

I do not agree with Friedman's theory that the social responsibility of business is to increase profits. Sustainable business focus towards creating economic value, healthy ecosystems and strong communities. This type of business strives to meet the triple bottom-line. An organization who focus only on making profits may not be successful in the long run.

Thus, ethic plays important role in business world and should be made the part of workplace culture. Organization should focus on creating ethical environment through recruitment, selection, training, performance review and career development of employees keeping in mind the ethical conduct of employees. Thus a company can be high performing if they implement sustainability and social responsibility.

The Polestar Argument: The fourth argument that opposes corporate social responsibility is the polestar argument, which simply says that if the manager’s act in a fashion that aims to maximize profits, then it will be best for all. In other words, if the CEO’s act as though they had promised the shareholders they would do so, it would be the most beneficial for the corporation. This argument appeals to the interests of the shareholders since it is not based on supposed justified obligations. Rather, it is a means of acting in a direct manner toward what is best for the society as a whole. The argument takes an implicit favoritism towards those whose feel that moral judgments are particularly unimportant if they are not able to adapt to rational discussion. With this position, profits are preferable since they are able to provide a tangible standard of measure of success and failures in an efficient manner. What Stone challenges in this argument is that those in favor of CSR do not pursue other alternatives such as improving laws. Stone claims that the “antis”7 are blind to the fact that there are circumstances in which the law is not competent in keeping the corporations under control. The law ought to keep corporations under control since they do not know how to responsibly engage in civic action. Thus it is important to identify where the conventional forces are no longer sufficient in order to design and implement new measures of law to keep corporate conduct under control.