Arguments against Social Responsibility

The case against business assuming social responsibility rests on four major arguments:

• (i) Violation of the profit-maximisation objective: On this view, business exists only to maximise profit, so any talk of social responsibility works against that objective. In fact, it is argued, a business best fulfils its 'social responsibility' simply by maximising profits through greater efficiency and reduced costs.
• (ii) Burden on consumers: Social responsibilities such as pollution control and environmental protection are very costly and often need huge investments. Businesses are likely to simply pass this burden on to consumers by charging higher prices, rather than bearing it themselves. Taxing consumers in the name of social responsibility is therefore seen as unfair.
• (iii) Lack of social skills: Social problems cannot be solved the way business problems are. Businesspeople do not have the necessary understanding and training to solve social problems, so such problems are better left to specialised agencies. …