The issues of social responsibility have received greater attention with the advent of intense globalization of business. Though there are disadvantages to adopting social responsibility, despite the numerous advantages of the practice. The problem that arises from using corporate social responsibility is that it promotes policies that are directly welfare reducing. Applying principles of corporate responsibility raises costs and prices. Whether it also reduces profits depends on market conditions. Corporate responsibility denies the managers ability …
showed first 75 words of 339 total

showed last 75 words of 339 total
…causes of cancer. The general public knew that the use of tobacco products may cause cancer but they needed an escape goat. Social responsibility movements subvert the implicit promise of corporations to their shareholders, and require an expertise that corporations cannot be expected to have. Business corporations can loose sight of its corporate adjective, and forget that its primary responsibility is maximization of shareholder value. This commitment to maximize shareholder value can lie in jeopardy.