Criticism Associated with Corporate Social Responsibility (CSR)

The concept of CSR has attracted a range of criticisms from some secondary data authors. It is important to note that “sceptics and opponents find their support in their assertion that beyond good intentions and turns of phase firms must account for reality. A reality characterised by hypercompetition and strong pressure to cut costs, compelling firms do search desperately for growth opportunities, leves no room for initiatives consistent with the CSR philosophy” (Perrini et al, 2006, p.6). Milton Friedman can be pinpointed as one of the most notable opponents of CSR concept. Schwartz (2010) mentions the Freedman’s (1962) viewpoint which states that “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 it stays within the rules of the game, which is to say, engages in open and free competition without deception and fraud” (Schwartz, 2010, p.52). Generally, criticism associated with the concept of CSR can be divided into the following five groups: Firstly, CSR allows businesses to project positive image by doing very little. Such type of criticism has been mentioned in the works of Mullerat (2009) and Aras and Crowther (2010). According to this viewpoint businesses can engage in CSR-related activities in a minimum manner, but still they can create highly positive brand image for the company by publicising their CSR efforts. Secondly, the level of publicity associated with the concept of CSR creates an impression that the majority of businesses are seriously engaged in CSR-related activities, whereas the reality is quite different. This issue has been discussed by Freitag (2008), Mullerat (2009), Aras and Crowther (2010) and others. Specifically, the authors state that increased level of coverage of CSR issues by various types of media tends to form an impression … Continue reading Criticism Associated with Corporate Social Responsibility (CSR)