The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit. Milton Friedman and Archie Carroll offer two contrasting views of the responsibilities of business firms to society.

1. Jakarta, 18 October 2013

2. Aidina Rizki Machari Siregar 122130004
Rintis Eko Widodo 122130087
Sherly Wira Foliya 122130092

3.  The concept of social responsibility proposes that a
private corporation has responsibilities to society
that extend beyond making a profit.
 Milton Friedman and Archie Carroll offer two
contrasting views of the responsibilities of
business firms to society.

4.  “There is one and only one social responsibility of
business to use its resources and engage in activities
designed to increase its profits so long as its stays
within the rules of the game, which is to say, engages
in open and free competition without deception or
fraud”

5. Discretionary
Ethical
Legal
Economic

6.  Economic responsibilities of business
organization’s management are to produce goods
and services of value to society so that the firm
may repay its creditors and shareholders.
 Legal responsibilities are defined by governments
in laws that management is expected to obey.
 Ethical responsibilities of an organization’s
management are to follow generally held belief
about behavior in a society.
 Discretionary responsibilities are the purely
voluntary obligations a corporation asumes.

7.  Gain brand loyalty
 Trustworthiness
 Goodwill
 Attract outstanding employees
 Attract capital infusions from investors

8.  Concept of sustainability more than just ecological
concerns and the natural environment but also
include economic and social concerns.

9.  Primary stakeholders
are directly affected by the corporation and usually
include customers, employees, suppliers,
shareholders, and creditors
 Secondary stakeholders
are indirect stake in the corporation but who are
aslo affected by corporate activities, usually
include activists, local communities, trade
associations, competitors, and government.

10.  Reasons for unethical behavior
it may be that the involved people are not even
aware that they are doing something quetionable,
cultural norms and values vary between countries
and even different geographic regions.

11.  Naïve relativsm
 Role relativism
 Social group relativism
 Cultural relativism

12.  Ultilitarian approach
 Individual rights approach
 Justice approach

13.  Positive
 Negative