Abstract

The purpose of this article is to explore why both conservative and liberal arguments are used on both sides of the corporate social responsibility debate, that is, why both conservative and liberal arguments are used in favor of corporations exercising social responsibilities and arguments reflecting similar political ideologies are used against corporations assuming social responsibilities. A theory of the proper social role of the business firm is clearly related to a theory of the proper role of government and public policy in economic affairs. But both conservative and liberal arguments are advanced on behalf of and against corporate social responsibility. The conservative argument against social responsibility holds that in a market system firms must be conscious of profitability in order to perform efficiently, In fact, corporate social responsibility is defined as non-profit-maximizing behavior, hence is subversive of the market. But if corporate social responsibility becomes instead a matter of which business policies are best for the firm, measured by traditional economic tests, then the conservative objection to social responsibility vanishes. Corporate policies undertaken to ensure a congenial operating environment become management's duty.