Social Responsibility Of The United Nations Global Compact

Milton Freidman states in his paper, â€Å"there is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits†¦Ã¢â‚¬  Although profit is very important result of a business, social responsibility is a factor in a successful business well. Society has changed since Milton Freidman made this statement in 1970; corporate social responsibility wasn’t a priority for majority of companies then as it is today. Many companies today have signed the United Nations Global Compact to show good global citizenship through human rights, labor standards, and environmental protection. In order for a business to be sustainable over time, it must adapt its behaviors. Consumers today desire more†¦show more content†¦As well, Walmart faces employees suing the company regularly for forcing overtime and denying insurance and many similar ethical issues. The upper managers were not to blame for these issu es but rather the company as a whole. Companies are expected to have a social conscience and take on certain responsibilities such as providing employment, avoid discriminating, and decrease pollution. The corporate executive is also expected to act socially responsible as a businessman. Acting in this way may at first seem as though it is taking away from profit; however, it can actually increase the profit and customer base for a company. The company is using moral behavior when the individual managers make decisions based on what they think is correct. They use ethical behavior when making decisions based on what society thinks is right. Society expects a company to do more than what is required. The upper-managers must make decisions by evaluating and choosing amongst alternatives. Employees today want more than just pay from the company they work for, they also desire benefits. Communities desire businesses in the area to generate more than just a profit, but also provide jobs to community members and to help the environment. Companies all understand ignoring environmental and social issues can be bad for business. Not following this can lead to high worker turnover, difficult y