Arguments for social responsibility are:
1. Long-term interest of the firm: A firm and its image stand to gain maximum profits in the long run when it has its highest goal as ‘service to society’.
2. Converting problems into opportunities: Related with the preceding argument is the argument that business with its glorious history of converting risky situations into profitable deals can not only solve social problems but it can also make them effective effectively useful by accepting the challenge.
3. Justification for existence and growth: Business exists for providing goods and services to satisfy human needs.
4. Avoidance of Government Regulations: Form the point of view of a business, government regulation are undesirable because they limit freedom.
5. Favorable environment for business: To have a favorable atmosphere for the business to flourish, it is essential for every business to be socially respondent.
6. Maintenances of society: It is noticed that many government organizations and social organizations have failed in improving the conditions of the society.
7. Consumerism: The movement of consumerism also influences the business concerns to undertake social responsibilities.
8. Availability of resources with business: The business concern has more resources in terms of labour, capital and materials etc.
Arguments against the social responsibility of business:
1. Lack of social skills: All social problems cannot be solved the way business problems are solved. In fact, businessmen do not have the necessary understanding and training to solve, social problems.
2. Lack of broad public support: Here the argument is that the public in general does not like business involvement or interference in social programmes.
3. Burden on customers: If business undertaking accepts the social responsibility. They are very costly and often require huge financial investments. In such circumstances businessmen are likely to simply shift this burden of social responsibility.
4. Government duty: Undertaking of social welfare schemes is the duty of government, but not of business. So business need not accept the social responsibility
5. Violation of profit maximization objectives: According to this argument the main – object of business is earning profit. Business exists only for profit maximization. But and talk of social responsibility is against this objectives. In fact business can best fulfill its social responsibility.
6. Conflict: The main aims of business is maximizing profit and social responsibility of business aims at providing services to society. Therefore there will be conflicts between profit motive and service motive of business concerns.
