Ethical And Legal Importance Of Social Responsibility

(1575)An Analysis of the Ethical and Legal Importance of Social Responsibility in Corporate Culture This business study will analyze the ethical and legal importance of social responsibility in corporate culture. Friedman (1970) defines the dangers of ‘social responsibility† as a threat to the individualism and profit motives of corporate executives that must serve the corporation before the larger society. More so, Friedman argues that the corporation is an â€Å"artificial person† that relies on the free markets to correct problems with non-productive, hazardous, or useless products may interfere with the stability of society. Glasbeek’s (2002) critique of Friedman’s â€Å"artificial person† defines the problematic propaganda of the corporation†¦show more content†¦Milton (1970 presents the individual role of the corporate executive as being legally bound to maximize the profits of the corporation over any potential interference from society and/or the government. In the capitalist system, the importance of private property and i ndividual ownership maintain the ethical necessity of corporate executive act only on the behalf of the corporation, especially in the context of the corporation as a its own type of â€Å"artificial person†: Only people have responsibilities. A corporation is an artificial person and in this sense may have artificial responsibilities, but business as a whole cannot be said to have responsibilities, even in this vague sense (Friedman, 1970, para.2). In this type of private sector environment, the individual responsibility of the corporate executive must only protect the interests of the corporation, as well as the profits that need to made to sustain this type of private capitalist institution. Therefore, making money for the corporation will improve the wealth of the company, which will then makes it possible to employ people in society and share in this wealth as a social benefit. In this manner, the legal and ethical â€Å"obligation† of the corporate executive must never take responsibility for what the corporation may do to threaten social stability (the environment,