Corporate Social Responsibility At Adam Smith s The...

Introduction The subject of corporate social responsibility raises a peculiar, yet necessary question if its concept is to be understood: why do businesses exist? There are several was to answer this question, but none comes as close enough as the content contained in Adam Smith’s The Wealth of Nations. According to Smith (2005), all individuals work for their own interests. This is affirmed by Hodgson (2004), who states that opportunism defines the transactional world of economic man. In the years gone by, businesses restricted the purposes of the existence of business solely for profit making. However, with the dawn of the 20th century, according to the International Institute for Sustainable Development (2013), businesses and corporates alike have realized that they are part of the society, and as such, can no longer operate in isolation. This concept is referred to as Corporate Social Responsibility. This report establishes that corporate social responsibility is important because it enhances the brand image, differentiation, and reputation of the business; increases stakeholder loyalty; decreases operating costs; and results in employee engagement and motivation. Brief Overview of Corporate Social Responsibility There is no universally acclaimed definition of what CSR is; rather its theoretical function is defined independently from entity to entity. However, according to Crowther Aras (2008), the conventional definition adopted by many businesses affords that CSRShow MoreRelatedThe Powers And Duty Of The Corporation1215 Words   |  5 PagesDuring a parliamentary committee hearing in 2006 it was stated that a director may fails its duty if consideration was given to factors other than maximization of profit . The same was argued by Milton Friedman, claiming that the only corporate social responsibility an organization has is to maximize its profit. 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Contents Introduction 3 Salomon v Salomon 4 Lifting the veil of incorporation 5 Fraud 5 Faà §ade or a sham 5 Groups of Companies 7 Adams Others v Cape Industries plc 10 Is there a need for reform? 12 Conclusion 14 Bibliography 16 Books: 16 Journals: 16 Cases: 17 Websites: 17 Bill: 18 Introduction In order to explain the statement this essay will explore the background to treating