Social Responsibility

Social Responsibility

Siddiq, Aisha

Subject: MGT 22203

[Institutional Affiliation(s)]

Author Note

Social Responsibility

From an ethical viewpoint, businesses do have a responsibility that extends beyond maximizing returns to shareholders, since they are often the reason behind social dilemmas such as pollution and resource depletion. Although, from a business point of view, a corporation has only one social responsibility “to use its resources and engaged in activities designed to increase profits” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"vU9cQ9Lg","properties":{"formattedCitation":"(Friedman, 2007)","plainCitation":"(Friedman, 2007)","noteIndex":0},"citationItems":[{"id":78,"uris":["http://zotero.org/users/local/0omESN17/items/NMNGAM3R"],"uri":["http://zotero.org/users/local/0omESN17/items/NMNGAM3R"],"itemData":{"id":78,"type":"chapter","title":"The social responsibility of business is to increase its profits","container-title":"Corporate ethics and corporate governance","publisher":"Springer","page":"173-178","author":[{"family":"Friedman","given":"Milton"}],"issued":{"date-parts":[["2007"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Friedman, 2007). Accordingly, if a corporation decides to fulfill its social responsibility and make a donation, it is deciding what to do with other people’s money. This can be exhibited by the fact that in 1919 when John and Horace Dodge sued Henry Ford for using the Ford Motor Company’s profits for using shareholder’s equity to further his own philanthropic goals ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"xTqORqKD","properties":{"formattedCitation":"({\\i{}Dodge v. Ford Motor Co.}, 1919; Macey, 2008)","plainCitation":"(Dodge v. Ford Motor Co., 1919; Macey, 2008)","noteIndex":0},"citationItems":[{"id":80,"uris":["http://zotero.org/users/local/0omESN17/items/W2CXAXDH"],"uri":["http://zotero.org/users/local/0omESN17/items/W2CXAXDH"],"itemData":{"id":80,"type":"legal_case","title":"Dodge v. Ford Motor Co.","page":"668","volume":"170","issued":{"date-parts":[["1919"]]}}},{"id":79,"uris":["http://zotero.org/users/local/0omESN17/items/SZP9BQGL"],"uri":["http://zotero.org/users/local/0omESN17/items/SZP9BQGL"],"itemData":{"id":79,"type":"article-journal","title":"A close read of an excellent commentary on Dodge v. Ford","author":[{"family":"Macey","given":"Jonathan R."}],"issued":{"date-parts":[["2008"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Macey, 2008). Under Dodge v. Ford Motor Co., 1919, the court ruled in favor of the Dodge’s agreeing that companies are designed to make profits and not use it for other purposes. At the time, the reigning opinion was that a corporation does not hold physical existence, it is artificial and composed of people. Thus, artificial entities do not have social responsibilities ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"9EMhJUUw","properties":{"formattedCitation":"(Friedman, 2009)","plainCitation":"(Friedman, 2009)","noteIndex":0},"citationItems":[{"id":77,"uris":["http://zotero.org/users/local/0omESN17/items/JYBELCQW"],"uri":["http://zotero.org/users/local/0omESN17/items/JYBELCQW"],"itemData":{"id":77,"type":"book","title":"Capitalism and freedom","publisher":"University of Chicago press","ISBN":"0-226-26418-1","author":[{"family":"Friedman","given":"Milton"}],"issued":{"date-parts":[["2009"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Friedman, 2009).

In the century that has passed since then, there has been a shift in corporate culture. According to Berle and ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"bb7rYh7B","properties":{"formattedCitation":"(Means, 2017)","plainCitation":"(Means, 2017)","noteIndex":0},"citationItems":[{"id":81,"uris":["http://zotero.org/users/local/0omESN17/items/AQ6XKVPS"],"uri":["http://zotero.org/users/local/0omESN17/items/AQ6XKVPS"],"itemData":{"id":81,"type":"book","title":"The modern corporation and private property","publisher":"Routledge","ISBN":"1-351-47935-0","author":[{"family":"Means","given":"Gardiner"}],"issued":{"date-parts":[["2017"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} Means (2017), shareholders are regarded as passive owners of a company at most. The only power they have is their ability to buy and sell the shares to their name. At present, corporations are applauded for performing their social responsibility. An example of this can be illustrated by the conscious raising of the cosmetic industry about the involvement of child labor in Mica mining in India. Mica is a natural resource that is used in just about every product in the cosmetic industry. With the lands of Bihar and Jharkhand, India being a rich source of Mica, mining process is carried out young children between the ages of 6 and 13CITATION Arz14 \m Mar17 \l 1033 (Rikhy, 2014; Münstermann & Werner, The Mica Children, 2017). In order to elevate the situation and improve the quality of life for children working in Mica mines, Cosmetic industry giants like Estee Lauder have collaborated with Bachpan Bachao Andolan headed by Nobel Laureate Kailash Satyarthi to provide children involved in Mica mining with quality education and their parents with alternative means of livelihood CITATION Joc18 \l 1033 (Zuckerman, 2018). On the other hand, Lush Cosmetics have begun investing in synthetic Mica and removed all natural Mica from their products, in their protest of involvement of child labor in Mica mining CITATION Han14 \l 1033 (Nesbitt & Fearn, 2014). Thus, in this way, a business does have social responsibilities and have a role to play, especially when their needs gives rise to illegal and unethical practices. In present times, a business’ responsibilities go far beyond that of maximizing returns to shareholders, they need to a play a vital role in shaping the world and lay precedence for good social responsibility for future generations.

Works Cited

Dodge v. Ford Motor Co. , (1919).

Friedman, M. (2007). The social responsibility of business is to increase its profits. In Corporate ethics and corporate governance (pp. 173–178). Springer.

Friedman, M. (2009). Capitalism and freedom. University of Chicago press.

Illegal mica mines in Bihar and Jharkhand employ child labour | India News - Times of India. (n.d.). Retrieved May 18, 2019, from https://timesofindia.indiatimes.com/india/Illegal-mica-mines-in-Bihar-and-Jharkhand-employ-child-labour/articleshow/33834105.cms

Macey, J. R. (2008). A close read of an excellent commentary on Dodge v. Ford.

Means, G. (2017). The Modern Corporation and Private Property. Routledge.

BIBLIOGRAPHY Münstermann, M., & Werner, C. (2017, June 22). The Mica Children. Retrieved from Spiegel Online: https://www.spiegel.de/international/tomorrow/a-1152334.html

Nesbitt, H., & Fearn, H. (2014, March 10). Lush to remove mica from all products over child labor fears. Retrieved from The Guardian.

Rikhy, A. (2014, April 16). Illegal mica mines in Bihar and Jharkhand employ child labor .. . Retrieved from Times of India: https://timesofindia.indiatimes.com/india/Illegal-mica-mines-in-Bihar-and-Jharkhand-employ-child-labour/articleshow/33834105.cms

Zuckerman, J. C. (2018, October 16). Is Your Makeup the Result of Child Labor? Retrieved from Marie Claire: https://www.marieclaire.com/beauty/a23722189/mica-in-makeup-controversy/