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Balancing Business Profits and Social Responsibility

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“ THE SOCIAL RESPONSIBILITY OF BUSINESS IS TO INCREASE ITS PROFITS” – MILTON FRIEDMAN, 1970 – A CRITICAL ANALYSIS ,[object Object],[object Object],[object Object],[object Object],[object Object]
CONTEXT OF STATEMENT ,[object Object],[object Object],[object Object],[object Object]
Social Responsibility + Profit ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Friedman’s Hypothesis ,[object Object],[object Object],[object Object],[object Object]
Our Position ,[object Object],[object Object],[object Object],[object Object],[object Object],VIEW: A business has a responsibility to increase its profits and to be socially responsible towards its external environment. Adopting a synergistic approach vs. a singular approach, will benefit both the stakeholders and the corporation.
Pros & Cons of Friedman’s Statement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ECOSYSTEM IN WHICH A BUSINESS EXISTS ,[object Object],“ The organisation cannot operate in isolation from the environment of which it is a part...The economic efficiency of organisations is affected by governmental, social, technical and cultural variables. Organisations make a contribution to the quality of life and to the well-being of the community” (Mullins, 2005) The Environment Moral + Ethical Financial Social & Governmental THE CORPORATION
Examples ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Synergistic Approach (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Synergistic Approach (cont’d) 2007 – 2010 Financial Donations: Employee Participation 2008 - 2010 Financial donations and volunteerism: Total employee contribution Financial Year 2010 2009 2008 2007 Dividends paid per share: $0.40 $0.34 $0.34 $0.32 Earnings per share : $1.88 $1.58 $1.34 1.05
A Synergistic Approach (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Synergistic Approach (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Balancing Business Profits and Social Responsibility

  • 1.
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  • 10. A Synergistic Approach (cont’d) 2007 – 2010 Financial Donations: Employee Participation 2008 - 2010 Financial donations and volunteerism: Total employee contribution Financial Year 2010 2009 2008 2007 Dividends paid per share: $0.40 $0.34 $0.34 $0.32 Earnings per share : $1.88 $1.58 $1.34 1.05
  • 11.
  • 12.