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1. From the mixture of the following arguments choose those for and against social responsibility.
1. Favorable long-run results for business. Social action by businesses that improve the community or discourage governmental regulation can be in the self-interest of business because of the benefits social involvement brings. A better society should produce a more favorable environment for doing business. Furthermore, even though the short-term costs of social action can be high, they can enhance long-term profits since customers, suppliers, the community, and other groups should have a more favorable image of the business.
2. Costs of social involvement. Resources that are allocated toward social issues represent a cost to business. Ultimately, these costs will be passed on to consumers in the form of price increases. Furthermore, those firms that compete in multinational markets with other international firms that do not have social costs will be at a competitive disadvantage. As a result, they will have fewer sales internationally, leading to a weakened international balance of payments for the country.
3. Violating profit maximization. The allocation of resources toward social involvement occurs to the detriment of maximizing profits. Business is most socially responsible when it focuses solely on economic interests and leaves social interests to governmental agencies, charitable institutions, and educational organizations.
4. Moral obligation to be socially responsible. Business is a member of society, and like all members, a code of morality should govern its behaviour. Businesses, like individuals, should act in a socially responsible way and help to preserve the moral fabric of society. Furthermore, because laws cannot be passed for all situations, businesses must assume responsibility to maintain an orderly, legal society.
5. Changing public needs and expectations. Social expectations of business have changed dramatically. In order to narrow the gap between public expectations and business response, social involvement is expected and necessary.
6. Lack of skills to deal with social concerns. Business personnel have skills that are best utilized in economic, market, and technical activities. They do not have the skills to make meaningful contributions toward solving societal problems. It is a function of personnel employed in government and charitable institutions to utilize their skills toward improving society.
7. Availability of resources to help with social problems. Since business has a substantial pool of human and financial resources, they should allocate some of these resources toward social ends.
8. Lack of accountability to the public. Since managers are not elected public officials, they are not directly accountable to the public. The market system controls business economic performance, but is a poor system for controlling social involvement. Until society develops procedures that establish direct accountability from business to the public, business should not pursue social actions for which they will not be held accountable.
2. You are managers working in a company which faces a serious problem. One of the managers in your group summarises the problem and then everyone in the group participates in trying to solve it.
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