MINISTRY OF EXTERNAL AFFAIRS
University of World Economy and Diplomacy
THEME: CORPORATE SOCIAL RESPONSIBILITY IN THE CURRENT FINANCIAL CRISIS.
Prepared by Mirzakulov Hojiakbar
Responsible Mentor: Zakirova.S.A
Tashkent – 2009
Our skeptical world is becoming more and more complex; we are facing barriers, problems like corporate scandals, stock downturns, uncertain economy, and threat of terrorism every single day. Particularly the world economy is experiencing a strident downturn nowadays. The lack of the food ...view middle of the document...
Enterprises do this by the wealth they generate, the jobs they create, and the services and goods they maintain.
In his book, Capitalism and Freedom, Friedman argued 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 or fraud”.
He defined that social responsibility is not just a theory, but it is a deed, it is a feeling that one is definitely responsible for something; he compared the businessmen who repeatedly talked about the social responsibility to the French guy who at the age of 70 got that he sang a song all the life. He said that the businessmen believe that they are defending free enterprise when they declaim that business is not concerned merely with profit but also with promoting desirable social ends; that business has a social conscience and takes seriously its responsibilities for providing employment, eliminating discrimination, avoiding pollution and whatever else may be the catchwords of the contemporary crop of reforms.
He put a question that does business have a responsibility? Only human has a responsibility; how is it going to work? He stated that a corporation is an artificial person and in this sense may have artificial responsibilities, but business as a whole cannot be said to have responsibilities, even in this vague sense. Presumably, the individuals who are to be responsible are businessmen, which means individual proprietors or corporate executives. In a free-enterprise, private-property system, a corporate executive is an employee of the owners of the business. He has direct responsibility to his employers. This responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom. The social responsibility may embrace all human activity if it is approached seriously, he argued.
Corporate social responsibility is not just a relationship between an employer and employee. It is explained through the way the company behaves; coming to the service of the customers and society over its profits. It is measured by how the company’s deeds are profitable and not harmful for the interests of the society. Namely, there is one principle that lies at its essence: conducting business in an economically, socially and environmentally responsible manner, and placing this theory into the very brain cells of the company. If every company and business refused to pay bribes, implemented fair labour practices and adopted economically, environmentally and socially responsible practices then we would even less likely imagine about the current “events”: our world would be more balanced and more sustainable.