SOCIALLY RESPONSIBLE FIRMS: AN EMPTY BOX OR A UNIVERSAL SET?

The article focuses on the social responsibility of business and its contribution in profit maximization. The pursuit of particularized social goals in a business context, arises from two sources namely through the actions of utility-maximizing entrepreneurs and through the choices of consumers and suppliers who desire, along with commodities or monetary payments, the attainment of specific non-pecuniary results in commerce. Social responsibility exists if the general preference function of the enterpriser includes variables coinciding with what the United States' community regards as desirable. Activities generally considered as responsible are sharing the readjustment costs of employees faced with automation and plant closings, mutual adjustment of contracts between firms and suppliers, friendly and honest consumer relations, corporate charity. An enterpriser unconcerned about charity while interested in profits but at the same time confronted by consumers and owners of inputs who are favorably impressed with business contributions, finds that it pays to be somewhat generous.