Friedman Model Of Csr. Friedman critical view of csr to porter and kramer shared value proposition emphasizing at the same time its par allelism with the evolution of asset valuation models from the viewpoint of common stocks value. No one should consider what is or why corporate social responsibility should be done without first reading and understanding his article.
It will be argued that directors cannot act in any way to increase profits and that corporations should engage in socially responsible activities as it can be shown that they at least have an indirect positive effect on organisational performance. Both mbnqa and efqm include csr as part of their model as a core value fundamental concepts of excellence. This may be on stockholders in the form of lower returns on customers higher prices or on employees lower wages.
Milton friedman pioneered the intellectual fight against csr.
No one should consider what is or why corporate social responsibility should be done without first reading and understanding his article. It will be argued that directors cannot act in any way to increase profits and that corporations should engage in socially responsible activities as it can be shown that they at least have an indirect positive effect on organisational performance. The piece remains as polarizing today as it was. Friedman s neo classical dogma of amorality of business has contributed to build our time dominant perception of sustainability as a marginal and anti economic activity.
