The economic model is a narrow view of corporate social responsibility (CSR). What are the alternative broader models of CSR?
What will be an ideal response?
The alternative models to the economic model of corporate social responsibility (CSR) include the philanthropic perspective of the economic model of CSR, the stakeholder model of CSR, and the integrative model of CSR.
The philanthropic perspective of the economic model holds that, like individuals, business is free to contribute to social causes as a matter of philanthropy. From this perspective, business has no strict obligation to contribute to social causes, but it can be a good thing when it does so. Just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community, business has no strict ethical responsibility to serve wider social goods.
The stakeholder model of CSR understands that business exists within a web of social and ethical relationships. The stakeholder model holds that businesses exist to create value for a range of stakeholders, including employees, customers, suppliers, and local communities as well as investors and stockholders. Business managers have responsibilities to all those who have a stake in the success or failure of the company, not only to those who have invested financially.
The integrative model of CSR holds that firms should fully integrate economic and social goals by bringing social responsibilities into the core of their business model. At first glance, firms that adopt the integrative model raise no particular ethical issues. Even advocates of the narrow economic model of CSR such as Milton Friedman would agree that owners of a firm are free to make the pursuit of social goals a part of their business model. They would just disagree that these social goals should be part of every business's mission.
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