Corporate Social Responsibility: Milton Friedman vs. Archie Carroll - Реферат

Today the future of the companies in many respects if not generally is defined by quality of corporate governance which is considered as one of effective ways of increase of investment appeal of the companies and, as a result, improvement of investment climate in the country. Whether means it system of the obligatory rules governing the relations in sphere of action of the companies, or corporate governance implies imperious and administrative activity of individuals, including representatives of top management and shareholders? On the one hand, corporate governance includes procedures of realization of the rights of shareholders, obligations of board of directors and responsibility of his members for made decisions, level of remuneration of top management of the company, an order of disclosure of information and system of financial control, on the other hand - it means activity of the state regulators and other authorized bodies and the organizations, directed on a regulation of the specified sphere of the relations, with the third is an activity of rating agencies which, appropriating certain estimates, form idea of the investor of investment appeal of the company. However in essence corporate governance is a process of search of balance between interests of shareholders and management in particular and interests of separate groups of persons and the companies as a whole by realization by participants of the market of a certain system of ethical and procedural standards of the behavior accepted in business community.Corporate social responsibility (CSR, also called corporate responsibility, responsible business and corporate social opportunities) - is the concept according to which the organizations consider interests of society, conferring on itself responsibility for influence of their activity on customers, suppliers, workers, shareholders, local communities and other interested parties of the public sphere. This obligation is beyond the obligation established by the law to observe the legislation and assumes that the organizations voluntary take additional measures for improvement of quality of life of workers and their families, and also local community and society as a whole.Bowen for the first time mentioned this perspective in the book "Social Responsibility of the Businessman", having noted need of inclusion of a number of social problems to the sphere of responsibility of business. Further intensive economic development of the countries, growth of influence of business as a whole, significantly increased interest to a question of responsibility of business, its place and a role in social and economic life of society. In the early seventies the largest companies of the USA and the developed West European countries realized the social responsibility, having decided to develop uniform values in relationship with employees and enterprise environment. According to the most widespread, CSR - is the concept within which the companies on a voluntary basis integrate social and ecological policy into business activities and their relationship with all circle of the organizations connected with the company and people.It also should be noted that complexity in definition of CSR results from a multi-levelness of a basic component of the term - responsibility. The general meaning of the word "responsibility" - is a duty to be responsible for acts and actions, and also their consequences. In the majority of modern approaches of CSR refer to ethical category and consider as moral responsibility which in turn means a conscious and voluntary choice of the subject of this responsibility. Obligatory responsibility means need of the organization to be responsible before society for consequences of the decisions and acts. It is possible to refer need of the organization to be responsible before society for quality of goods delivered by them and services to obligatory external responsibility; the harm done to surrounding environment by action / inaction of the organization; results of influence on political, economic, social spheres (in this case means, attempts of creation of monopolies, arrangement of corporations, creation of the laws lobbying interests of minority) etc.Upon corporate social responsibility is a voluntary contribution of business to society development in the social, economic and ecological spheres, connected directly with primary activity of the company and beyond the minimum defined by the law. Howard Bowen in the book claims that the idea of social responsibility is applicable to business as the social purposes in business practice can bring social and economic benefits to society. Others consider that "to live in society and to be free from society it is impossible" that it is social investments. The UN suggests to note three CSR levels where the first and second levels are connected with performance of duties before the state and society in the form of timely payme

Contents

1. Introduction

2. The main idea of CSR

2.1 History of CSR

2.2 Types of CSR

3. Profitability of CSR

3.1 Friedman’s Approach

3.2 Carroll’s Approach to CSR

3.3 Measuring of CRS

3.4 Determining factors for CSR

4. Discussion

4.1 Position

4.2 Justification

5. Conclusion

6. References

1.