The aim of this paper is to show to what extent companies have an interest in social engagement and whether this actually conflicts with the pursuit of profit maximization.
"There is one and only one social responsibility of business–to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud."
This quote comes from the American economist and later Nobel Prize winner Milton Friedman, with his statement he limited the responsibility of the company to only one function, the profit maximization. For Friedman, the social commitment of a company contradicted the goal of every economic company to maximize profits. From his point of view, corporate social responsibility meant that companies act fairly towards their stakeholders on the free market. This raises the question of the extent to which companies have scope to implement Corporate Social Responsibility measures and to what extent these measures and their effects can be evaluated.
Table of Contents
1. Introduction
2. Definition CSR
3. Implementation of CSR and motives
4. Implementation of CSR as an example of Zalando
5. Conclusion
Objectives & Topics
This paper examines the integration of Corporate Social Responsibility (CSR) within business strategies, specifically investigating whether social and environmental engagement conflicts with the traditional goal of profit maximization, using the company Zalando as a case study.
- The theoretical tension between profit maximization and CSR
- Definitions and core frameworks of CSR, including the Triple Bottom Line
- Strategic motives for companies to implement CSR programs
- Practical implementation of CSR standards at Zalando (Codes of Conduct and Ethics)
- Evaluation of the synergy between economic success and corporate responsibility
Excerpt from the book
4. IMPLEMENTATION OF CSR AS AN EXAMPLE OF ZALANDO
As an example of successful action management with regard to CSR, I would like to mention the mail-order company Zalando. It was founded in 2008 and is one of the largest online mail order companies in Germany with approx. 15,000 employees operating throughout Europe and an annual turnover in 2019 of approx. 6.48 billion Euros. Zalando employs staff who are committed to ensuring that these guidelines are observed. Various guidelines have been developed specifically for this purpose. There is a code of conduct, a code of ethics, an annual modern slavery statement and ethical sourcing standards. In the following I will go more into detail about the Code of Conduct and the Code of ethics.
On the one hand, there are the "Codes of Conduct", which contains guidelines relating to working conditions, environment, health & safety and fair & ethical business. Main aspects of the "Codes of Conduct" are that the working conditions are morally acceptable, i.e. no forced and prison labor, as well as slavery labor are prohibited. For child labor there is also a requirement that business partners should support children in their education and may only hire them when they reach adulthood. Other important points with regard to working conditions are anti-discrimination and disciplinary practices and, this means that nobody is disadvantaged because on the base of race, caste, union membership, social and national origin, color, gender, age, disability, political or sexual orientation.
Summary of Chapters
1. Introduction: Presents the central conflict between profit maximization and social responsibility as formulated by Milton Friedman and introduces the scope of the paper.
2. Definition CSR: Contrasts the narrow view of profit-oriented business with the European Commission's broader perspective on integrating social and ecological aspects.
3. Implementation of CSR and motives: Explains the systematic five-step approach to CSR program development and analyzes the four main categories of motives for such engagement.
4. Implementation of CSR as an example of Zalando: Examines Zalando's concrete application of CSR through Codes of Conduct, Codes of Ethics, and modern slavery statements, including internal oversight structures.
5. Conclusion: Summarizes that while a definitive answer to the profit-vs-responsibility debate remains complex, sustainable practices are becoming essential for modern corporate strategy.
Keywords
Corporate Social Responsibility, CSR, Zalando, Profit Maximization, Sustainability, Triple Bottom Line, Code of Conduct, Code of Ethics, Stakeholders, Milton Friedman, Business Ethics, Corporate Citizenship, Human Rights, Globalisation, Compliance
Frequently Asked Questions
What is the fundamental focus of this paper?
The paper explores the role of Corporate Social Responsibility (CSR) in modern business and analyzes whether social commitments are compatible with the primary business objective of profit maximization.
What are the central thematic fields covered?
The study covers the definition of CSR, the Triple Bottom Line model, motives for CSR implementation, and a practical application study of the online retailer Zalando.
What is the primary research question?
The aim is to determine to what extent companies have an interest in social engagement and whether such engagement inherently conflicts with the pursuit of profit maximization.
Which scientific methods are utilized?
The author uses a literature-based conceptual framework, applying theories like the Triple Bottom Line and Milton Friedman’s economic perspective, combined with a case study analysis of Zalando’s corporate documents.
What is discussed in the main part of the work?
The main part outlines the steps for developing a CSR program, categorizes company motives (ecological, management-related, political, and ethical), and details specific internal policies at Zalando.
Which keywords best characterize the work?
Key terms include Corporate Social Responsibility, Sustainability, Profit Maximization, Business Ethics, and Compliance.
How does Zalando monitor its CSR commitments?
Zalando uses specific teams, such as the Compliance & Business Ethics Team and the International Standards & Relations Team, to measure and control the implementation of their CSR concepts.
Does the author conclude that CSR hinders profitability?
No, the author concludes that companies can successfully combine profit maximization with social commitment and that sustainability has become a crucial component for long-term market survival.
- Citar trabajo
- Alina Böhm (Autor), 2020, The Social Responsibility of Businesses. The Example of Zalando, Múnich, GRIN Verlag, https://www.grin.com/document/922408
