Question

What are the arguments against Social Responsibility?

Answer 1

Critics of the Social Responsibility concept put forward the following arguments:

Lack of Conceptual Clarity:
The concept of Social responsibility is very vague and amenable to different interpretations. There is no consensus on its meaning and scope. In such a situation, it would be futile as well as risky to accept social responsibility.

Dilution of Economic Goals:
By accepting social responsibility, businesses will compromise with economic goals. Business is an economic institution and its only responsibility is to make maximum possible profits for its owners. It would endanger its economic viability by accepting any other responsibility.

Lack of Social Skill:
Business organizations and their managers are not familiar with social affairs. There are special social service organizations such as Government and Non-Governmental Agencies which can better deal with social problems.

The burden on Consumers:
If a business deals with social problems, the cost of doing business would increase. These costs will be passed on to consumers in the form of higher prices or will have to be borne by owners. This would lead to taxation without representation.

Responsibility:
Without Power, Business organizations possess only economic power and not social power. It is unjust to impose social responsibilities with social power. If the business is allowed to intervene in social affairs it may perpetuate its own value system to the detriment of society.

Misuse of Responsibilities:
Acceptance of social responsibilities will involve the diversion of precious managerial time and talent on social action programs. It may result in the dilution of valuable corporate resources.

Lack of Yard-stick:
Profitability is the common criteria for decision-making in business. Tampering it with social responsibility would make the decision-making process quite complex and controversial.

Improper Role:
The proper role of a business is to use its resources and energies efficiently so as to earn the best possible return on investment within the confines of law and ethics. The business should concentrate on economic performance leaving social service to other organizations.

Over Loading:
Responsibility Business organizations are already serving society by providing goods and services, generating employment, developing technology, and contributing to the public exchequer through tax payments. It would be unjust to overburden them with further responsibilities.