This is a response to Kevin’s insightful blog about Corporate Social Responsibility. I agree with Kevin that companies should not feel obliged to support a social cause because it is unfair to shareholders and consumers. A corporate executive’s main responsibility to shareholders is to use capital to maximize profits, “the only social responsibility of business is to earn profits while following the laws and basic ethical customs” as stated by Milton Friedman. It is also unfair to increase prices for a product or service in order to support a social cause because the customer buying this product or service may or may not support the cause.
Just because a company isn’t obliged to support a social cause doesn’t mean that it shouldn’t. Corporate Social Responsibility can benefit a company by boosting the morale of the company and possibly increasing sales. Every company has a set of fundamental values and beliefs and if the company supports a social cause that reflects these values and beliefs, it will boost the morale of the company. Also if a company supports a social cause that its consumers support, consumers will most likely support the company as well thus increasing sales. In addition, a company that associates itself with supporting a social cause creates a good brand image in the minds of its consumers/target market.