Arguments for CSR: Moral Argument

CSR is an argument of moral reasoning that reflects the relationship between a company and the society within which it operates. It assumes businesses recognize that for-profit entities do not exist in a vacuum and that their ability to operate and achieve ongoing success comes as much from societal resources (e.g., infrastructure, rule of law) and consent (e.g., social contract) as from factors that are internal to the firm. CSR emerges from the interaction and interdependence between for-profits and society. It is shaped by individual and societal standards of morality, ethics, and values that define contemporary views of human rights and social justice. Thus, to what extent does a business have an obligation to re-pay the debt it owes society for its continued business success?

On the one hand, it can be argued that business success depends on the society that provides the infrastructure, employees, consumers, and other elements that are central to success. On the other hand, if a business must fully reflect societal costs, it may not be able to compete—especially with firms in other societies that may be able to externalize their costs (such as dumping unfiltered pollution into local waterways).