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ADMS 1010 Study Guide - Quiz Guide: Corporate Social Responsibility


Department
Administrative Studies
Course Code
ADMS 1010
Professor
Diane Jurkowski
Study Guide
Quiz

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Assignment 3
In his work on “The social responsibility of business is to increase its profits”, Milton
Friedman argues that increasing profits greatly contributes to company’s corporate social
responsibility. Similarly, in the work “The Upside of Down” the author Homer-Dixon analyses
the five "tectonic stresses" that are accumulating deep underneath the surface of our society. He
talks about how these “tectonic stresses” could cause a disastrous breakdown of natural order
such as, an earthquake that could hurt a lot of people. The disasters that will be brought by as a
result of these “tectonic stresses” will be catastrophic. As Freidman highlights that increase in
profits means a financially stable company. As a company is well financed it can allocate more
resources which can then be used to help with the natural disasters Homer- Dixon has addresses
in his work. In addition to that Freidman highlights that if a company becomes socially
responsible it is improving its external environment which in the long run will benefit the
corporation itself and its stakeholders. Moreover, if a company is financially stable as a result it
will more motivated to contribute to society and its causes. Also the increase of profitability of a
company allows it to build equality and goodwill, thus benefitting the society. I agree with
Freidman’s claim because argues that social responsibility is not directed at an individual, but
rather at the corporation. A corporation should use its resources to help benefit the society and
economy. This can happen through the increase of profits. Friedman’s approach is meant to
improve the economy. He also says that corporations should be socially responsible but within
the framework of the law. Consequently, Friedman demonstrates his claim that the only social
responsibility of a business is to increase profits. He also demonstrates how this increase in
profits can help with the “tectonic stresses” that Homer-Dixon poses to be problematic.
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