ETHICS & CSR

Ethics & Corporate Social Responsibility

Table of Contents

Ethics & Corporate Social Responsibility3

'Let capitalism rip'3

Introduction3

Theoretical framework4

Application, evaluation, critical thinking4

Conclusion & recommendation5

Models of CSR5

Milton Friedman's Introduction5

Norman Bowie's Introduction6

Theoretical framework6

Application, evaluation, critical thinking7

Conclusion & recommendation8

Marks & Spencer CSR activities8

Introduction8

Theoretical framework9

Application, evaluation, critical thinking10

Ethics & Corporate Social Responsibility

'Let capitalism rip'

Introduction

The concept of a “Free market” was given by the Spanish and Peruvian lawyer and economist, Juan de Matenso in the sixteenth century. The free market is a market where prices of goods and services are achieved only by the mutual interaction of buyers and sellers. By definition, free-market sellers and buyers do not force or deceive each other, nor are forced by a third party. The aggregate effects of individual decisions are described by natural laws of supply and demand. Free markets are in clear opposition to mandatory markets, the planned economies, where governments directly or indirectly regulate prices and supplies, planning the distribution of consumers according to the objectives. They can distribute the assets according to the needs or encourage those who produce more, thereby providing incentives (McWilliams 2001, 117).

The free market economy is closely associated with the economic philosophy of laissez faire, then, with the publicly owned limited to a defensive role, the state itself is not involved personally in the market, if not by imposing taxes to finance the maintenance the free market. In some conceptions of free markets are opposed even to the same taxes, arguing that the market is better to provide all services without exception, including the defence and the law. While some capitalists are looking to the free market as a useful but simplistic model to develop economic policies to achieve social objectives, others look to the free market as a regulation and not a descriptive concept, and argue that policies that deviate from the ideal of the free market solution are 'wrong' even if they are held to bring immediate social benefits. Paul Samuelson discussed the market failure as the exception to the rule of efficient markets.

Theoretical framework

“The best imaginable force for improving human wealth and happiness”, this is how the Prime Minister describes a capitalist economy, while supporting the 'let capitalism rip' allegation. David Cameron talks about a “socially responsible and genuinely popular capitalism” (Newstatesman.com), in his allegation for letting the capitalism rip. According to Cameron, the best way out to recoup with the emerging crises does not only mean making payments for the deficits and encouraging growth, but he recent times calls for a concerted approach to make a commitment towards enhancing the sustainability of the societal markets. In this perspective, Cameron supported the view that markets should be free and fair (Mackey 2007, 817).

Application, evaluation, critical thinking

In the perspective of a free market or capitalistic thoughts on a “free” market, the allegation can also be evaluated in the light of the theories and models presented by Adam Smith and Karl Marx. The mode of capitalism, as is supported by Cameron, does not take into account the fact that a free ...