Critically evaluate the arguments both for and against businesses exercising corporate social responsibility (CSR), and indicate where you believe the ‘boundary’ should lie.

A long running issue in the study of management has been whether business organisations should focus only on delivering profits and dividends for their respective owners, or whether businesses have a broader responsibility to the communities/societies in which they operate.

Critically evaluate the arguments both for and against businesses exercising corporate social responsibility (CSR), and indicate where you believe the ‘boundary’ should lie.

It is not mandatory to do so, but in your answer you may consider matters such as:

• Whether CSR is an obligation on all businesses, or only large corporations;
• Who should determine the level and type of CSR initiatives a business should pursue;
• Whether some stakeholders are more important than others;
• Whether businesses, having committed to CSR initiatives, are obliged to sustain their CSR efforts even during periods when the company is unprofitable, or making only low profits;
• Whether there are real instances that illustrate your arguments (Examples touched on in lectures and seminars include the BP Gulf of Mexico oil spill; the price of milk in the major Australian supermarket chains; the Apple CEO’s comment regarding making products accessible for blind users; and, in the context of unintended consequences, but relevant to the CSR discussion, the Exxon Valdez disaster. There are many others.).

Marking will be done “overall”, rather than marks being allocated to sections of the assignment.

Readings on this topic have been provided as part of the course.  You may consider using other references.  Note that you should read sufficiently to understand the arguments in this debate.  However, your references are included in the word count, so balance the number of references with allowing sufficient word capacity to explain your understanding of the topic and putting forward your own point of view.

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