Arguments in favour of Social Responsibility:
1. Justification for Existence and Growth:
The prosperity and growth of business is possible only through continuous service to society.
2. Long term Interest of the firm:
A firm can improve its image and builds goodwill in the long run when its highest goal is to serve the society.
3. Avoidance of government regulations:
Business can avoid the problem of government regulations by voluntarily assuming social responsibilities.
4. Maintenance of society:
Law alone can’t help out people with all the difficulties they face. A socially responsible business can contribute something for social peace and harmony.
5. Availability of resources with business:
Business has valuable financial and human resources which can be effectively used for solving problems of the society.
6. Better environment for doing business:
Social responsibility creates better environment for business operations as it improves quality of life and standard of living of the people.
7. Contribution to social problems:
Some of the social problems have been created by business firms themselves such as pollution, unsafe workplaces, discrimination, etc. Therefore, it is the moral obligation of business to solve such social problems.
Arguments Against Social Responsibility:
1. Violation of profit maximization objective:
According to this argument, business exists only for the maximum profit to its shareholders and do not have responsibility to the society as a whole.
2. Burden on consumers:
Involvement of business in social responsibilities involve a lot of expenditure which will ultimately be borne by the customers.
3. Lack of Social Skills:
The business firms and managers are not expert to tackle the social problems like poverty, overpopulation etc.
4. Lack of public support:
Business cannot fulfill social responsibility because of lack of public confidence & cooperation.
