Journal # 6: The Social Contract

June 25, 2012

            I have to say that I am not a fan of the economic model of CSR because it simply focuses on the notion that the social responsibility of business managers is to pursue profit within the law.  It refers to producing goods and services for the demands of the society.  On top of this, we also discussed that, “There is a social contract between business and society involving mutual obligations that society and business recognize that they have to each other”.  Meanwhile, as we started discussing the Philanthropic Model of CSR, I became more focused since I believe in the importance of this model.  Every business must realize that they have an obligation to give back to society and go beyond the narrow obligations of law and economics. 

            I am not saying that businesses must not focus on earning profit but instead, I am hoping to see every company earning profit (as included in their vision) and at the same time, contributing towards the betterment of society.  Therefore, I mostly agree on the Stakeholder Theory, which gives importance to all the stakeholders of the company.  It is best to have a good relationship with all the stakeholders for a company to achieve success. 

            Due to my fondness towards the Stakeholder Theory on Corporate Social Responsibility, our original topic for thesis revolved around this.  I was hoping to learn more about this theory and have a better understanding on CSR, since it is quite a broad term and each person has a different definition for it.  Unfortunately, my thesis mates and I decided to change our topic because not all of us had the heart for such topic.  Despite that fact, I still want to discover more about the Stakeholder Theory because I know that it can help me in the future when I enter the corporate world.  That is why I enjoy having this class since it is very practical and it is easy to understand.