The Business of Business Literature review Example | Topics and Well Written Essays - 3000 words

The Business of Business - Literature review ExampleThere are three several(predicate) schools of thought or approaches on Corporate Social Responsibility. They can be classified as neoliberal approach Neo-Keynesian Radical Political Economy In the Neoliberal approach, Corporate Social Responsibility is outlined as the basic and fundamental set of policies, codes or guidelines which drives the basic running of a problem (Lockwood, 2012). It is chief(prenominal)ly based on the viewpoint articulated by Friedman that the main social responsibility of a business is to effectively use its resources and employ those activities which increase the profits of the business as long as it engages in free and open competition without any deceptive and fraudulent activities (The Guardian, 2009). In an article, a neoliberal journalist, Ahaner (2012) justly pointed out that the main flaw of Corporate Social Responsibility is that the businesses justify their existence by performing on higher mor al grounds. According to Riley (2011), the main idea of the pursuit of profit not be associated with public good simply does not match up. Adam Smith had rightly said that it is not from the benevolence of the butcher, the brewer or the baker that we expect our dinner, but from their regard to their own self-interest. Although some of the neoliberal advocates agree that Corporate Social Responsibility hinders the achievement of the primary purpose of the business, they agree that it pass on be profitable for the companies in the long run if they adopt Corporate Social Responsibility in their policies (Jedrzei, 2007, pp. 669-681). Furthermore, Yuan (2011, pp. 75-92) adds that even if Corporate Social Responsibility hinders the businesses profit-making, it is imperative to note that it can be utilize as an important insurance strategy to lower the risks of adverse media campaigns, consumer backlash to corporate behavior and governance intervention. On the other hand, Cai (2011) d efends that the advocates of Neo-Keynesian have a wider approach by recognizing the active component part of the business stakeholders. However, at that place is no general definition of Corporate Social Responsibility and it is principally construed as having no glob and external set of regulations by both the stakeholders and the state. The Neo-Keynesian theory is divers(prenominal) from that of the neoliberal perspective is many ways. The main difference is that the Neo-Keynesian recognizes that market failures or lack of corporate awareness can have negative impacts on corporate behavior (Thomsen, 2010, pp.139-142). Advocates of neo-Keynesian are mostly concerned with the corporate environmental policies, regulations, and policies related to workplace and mainly the environmental and economic consequences of business activity. Marquez and Fombrun (2005, pg. 304) explain that advocates also entertain the thought of a positive role of the state in enforcing regulations and po licies of Corporate Social Responsibility. The third school of thought, The Radical political economy has a skeptical stance on Corporate Social Responsibility by following a different viewpoint on the existence and the abuse of corporate power in terms of both spherical and local economies.