Features of Management
Management is an activity concerned with guiding human and physical resources such that organizational goals can be achieved. Nature of management can be highlighted as: – Management is Goal-Oriented: The success of any management activity is assessed by its achievement of the predetermined goals or objective. Management is a purposeful activity. It is a tool […]
The Mystery of Capital: Property Rights and Records of Ownership
The Mystery of Capital In previous articles, we discussed the concept of property and how the measure and nature of property rights have been developed over the last two centuries. This article examines a key aspect of the mystery of capital and how it is generated i.e. the concept of clearly defined property rights and […]
Management by Objectives (MBO) – Meaning, Need and its Limitations
An effective management goes a long way in extracting the best out of employees and make them work as a single unit towards a common goal. The term Management by Objectives was coined by Peter Drucker in 1954. What is Management by Objective ? The process of setting objectives in the organization to give a […]
Creating a SIPOC Chart
The SIPOC Chart, being one of the fundamental documents of any process improvement project must be developed in such a manner that it is easy to understand. It must also be coherent with the logic inbuilt in the process. There is a method which has been described to ensure the proper development of the SIPOC […]
Why Europe is Broke and no amount of Central Bank Monetary Easing would Help
How the Eurozone Misread the Signals from the Global Economic Crisis When the global economic crisis broke out in the autumn of 2008, the impacts were felt around the world. However, it affected the US primarily though countries across the world felt the reverberations to some extent. When the crisis broke out, Europeans were smug […]
In case corporations need some convincing to be done to adopt CSR, the model proposed by Young and Tilley (2006) where they list six criteria for corporate sustainability that not only contributes to the social responsibilities of the business but also improves the business efficiency. The latter if presented in a convincing manner would appeal to businesses since increased efficiency leads to greater cost savings as well as improved profit margins.
The six criteria discussed by Young and Tilley are:
Taken together as a whole, these six criteria form an integrated model which corporations can follow for sustainable business practices and reap profits as well as be conscious in their business practices.
The point here is that the motto that CSR pays in real economic terms ought to be broadcast far and wide and only when corporations realize the economic benefits of conscious capitalism would they embrace the paradigm of CSR wholeheartedly (Young & Tilley, 206, 411).
Given Friedman’s injunction that the social responsibility of businesses is to make profits, if it can be shown that being socially responsible brings in profits, there can be no better business case for CSR.
This is realizable given the emerging research into CSR and business practices which throw up several connections between conscious capitalism and increased profits and the new “renaissance” in business thought and corporate behaviour ought to gladden the hearts of all CSR enthusiasts.
Before concluding the paper, it would be pertinent to note that Friedman’s article though cited widely might be a bit anachronistic for the imperatives of the 21st century and while the great professor was far sighted he could have not foreseen the complete breakdown of the neo classical model of economics that the Great Recession of 2008 has engendered.
Thus, while views such as that of Friedman’s can be a good starting point as to debate the relative merits and demerits of social responsibility versus profits, to base the whole idea of CSR on his ideas alone would be doing a disservice to the non-linear, complex and interconnected world in which we live in and which demands appropriate out of the box solutions.
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