Social responsibility has a moral justification. This moral justification stems from the fact that when someone takes something from others, he must give something back to them. For moral reasons, this equation must be based on justice for it to continue. A firm takes various inputs (money, materials, people, information, etc.) from society and gives outputs (goods and services) to society through the use of different inputs. The input and output system only works well if it meets social requirements. One of the foundations of business ethics is the theory of utilitarianism. Utilitarianism asserts that when evaluating all options, the option that achieves the greatest net benefit for the lowest net cost is the most ethical option. However, the factors taken into account in this cost-benefit analysis could seriously distort the results one way or the other. Successful companies recognize the need for fair and responsible ethical behavior, not only from a moral standpoint, but also from a business perspective. Investor loyalty: Investors are concerned about the ethics, social responsibility and reputation of the company in which they invest. Investors are increasingly aware that an ethical climate is the basis for efficiency, productivity and profits.

The relationship with all stakeholders, including investors, based on reliability, trust and commitment, leads to lasting loyalty. Companies are not real: they are conceptual and abstract abstractions. The big change that brought us to the giant multinational corporations we see today was the legal decision to treat corporations as their own entities, and we should respect that separation. So where does ethics come in? Two places. Companies need to be ethical when making money from it. There are defined markets for ethical products. People will be attracted to fair trade labels, they will (sometimes) pay more to know the workers who have made their clothes an acceptable life. The basic function of a company is to offer its customers a product at a price lower than or at most equal to the satisfaction of the use of the product. When this relationship is reversed, the product loses all meaning. In general, the cost of production is an important factor in determining the price of the product. Assuming social responsibility increases costs, the price of the product may reverse the above equation and the business may not remain viable in the long run. Because of this phenomenon, Milton Friedman, a well-known economist, observed: The key to business ethics is that workers practice ethics and remember that business is the abstract concept that people who make decisions are made of.

It`s NOT that you`re just “a cog in the system” and so your role is purely profit-oriented because it`s not. Claimed disadvantages for ethical business include: Any business that involves the realization of society`s aspirations creates a better public image. Creating this type of image is a source of satisfaction for those who do business. It also helps to increase the volume of business, both in terms of receiving inputs and supplying products. 1. First, they exaggerate the trend and potential extent of voluntary corporate social responsibility. The perception of social responsibility implies a major impact of the company on society. Therefore, by assuming social responsibility, a company is likely to impose its own values on society, thus replacing social values with commercial values. This has occurred in many cases. This is highly undesirable from a social point of view. There are several fundamental ideas about corporate social responsibility.

Over time, things have changed too much, made new ideas and replaced the classic economic view of profit maximization in the company. Based on this characteristic in the current context, the arguments in favour of social responsibility are as follows: social responsibility is in the long-term personal interest of the company. The existence of a company is based on the existence of various social organizations such as financiers, employees, customers, society as a whole, etc., and not otherwise. Therefore, the economy should continually satisfy all these institutions for their survival. By assuming social responsibility, the company can offer this satisfaction. 2. Second, they want commercial organizations to do something they can`t, which is to ignore society`s demands on them. The second is the people in the company. They have a responsibility for ethics because they are people, real people, not abstract concepts.

The economy is part of society. Society is a system and the economy is one of its subsystems. Each subsystem of a system works to improve the entire system, not just its own. This version also applies to businesses. Therefore, the company is responsible for the company as a whole and the pursuit of the company`s profit cannot prevail over the other motivations of the company. Typically, people misinterpret the concept of business purpose and view social responsibility as a goal that diverts attention from profit or goes against it. This is not the case at all. Economic and social concerns should not be seen as opposing ends of a continuum, as the image of the false vision of social responsibility shows.

The right position is realistically based on corporate responsibility. There are various arguments against social responsibility, although most of them are based on classical economics. These arguments are as follows: Regulators: Regulators view businesses that operate ethically as responsible citizens. The regulator does not always have to monitor the operation of the ethical business. The company makes profits and reputational gains when it acts within the limits of business ethics. In summary, companies that cater to employee needs have lower turnover. More and more companies are recognizing the link between business ethics and financial performance. Companies that demonstrate a “clear commitment to ethical behavior” consistently perform better than companies that don`t. This question has attracted the attention of many thinkers, academics and practitioners. There were arguments and counter-arguments for and against corporate social responsibility. In order to give a balanced view of corporate social responsibility and its role as a corporate objective, it is worth briefly presenting the arguments for and against that have emerged over time. However, it should be noted that any argument for and against social responsibility requires some understanding of the concept, which can vary.

Arguments for and against corporate social responsibility This figure shows that, while there are clearly different economic and social concerns, there is a fairly broad area where economic and social concerns are compatible. It is the activities of companies that fall into this overlapping field that offer a more realistic view of social responsibility. Therefore, the question is not whether companies have a social responsibility; This is the case. Basically, it is a question of identifying this responsibility in general and for individual companies in particular. The implementation of social responsibility poses some operational challenges. Both conceptually and operationally, social responsibility is a confusing term. As a result, managers involved in managing business affairs are not very clear about what is expected of them in the context of social responsibility. As a result, actions ranging from the simple expression of sympathy from the lips to the implementation of concrete programs with several crores are included in social responsibility. Politics and business use evolution.

We have created artificial environments with artificial rewards. Organisms that do not receive enough food, protect themselves and attract a partner die. It has worked remarkably well for a very long time. This is the only effective way to create an efficient economy that can improve the quality of life, alternatives like communism fail on a large scale because they cannot provide this evolutionary simulation. The company has a clear metric – money. If you make a profit, you survive, if you don`t, you die (bankruptcy). Companies can reproduce (merge), they can grow. A trait of every living organism must be passed on through breeding, but business ideas that work still spread. Think about agile programming or the idea of specialization at work, even at a more fundamental level.

The companies that implemented them had a better chance of success, more of them survived. Today, most surviving companies are implementing them. There is only one responsibility of the company – to use its resources and engage in activities aimed at increasing its profits, as long as it plays by the rules of the game. Customer satisfaction: Customer satisfaction is a crucial factor for a successful business strategy.