The Social Responsibility of Businesses’

Entine and Jennings views corporate social responsibility of business as being more than individual responsibility, but defining it as, “the soul of a company is more complex than that of an individual (Jennings, 2012, p 102).” Friedman’s view on social responsibility of business is to increase profits’ and as a whole, businesses cannot have responsibilities, individuals have responsibilities or in this case corporate executives who has a direct responsibility to his or her employer (Jennings, 2012, p 91).  Freeman’s stakeholder theory of the modern corporation pose several challenges implied within the framework of managerial capitalism.  Freeman states that the demise of the modern corporation is not his wish, but as Neurath would say “we shall attempt to ‘rebuild the ship, plank by plank, while it remains afloat’ (Jennings, 2012, p 96).  Freeman has also come to the conclusion that the concept of managerial capitalism should replace the notion that managers have a duty to stockholders with that of having a fiduciary duty to stakeholders.  A stakeholder is someone with a stake or claim in the firm.  Freeman views stakeholders as suppliers, customers, employees, stockholders, local community, and management in it role of agent for these groups (Jennings, 2012, p 96). 

All in all Entine and Jennings ask if a company can be trusted by a shareholder or customer merely on the grounds that it has adopted a posture of social responsibility, the answer is no.  If a company states that it is accountable first and foremost to its shareholder, does such a statement mean that the company is any less honorable; no it does not (Jennings, 2012, p 104).  There is no one who is without sin, just as there is no company ethically perfect.  The constant obsession with CSR (corporate social responsibility) only interferes with the honest evaluations of the soul of the company (Jennings, 2012, p 104).