The modern CSR movement is the next wave of political correctness that ignores the basic free market principles articulated by Friedman. So-called “corporate social responsibility” is the notion is that businesses have much broader responsibilities than simply selling products that people want to buy and generating profits for its investors. According to the CSR view, businesses are as, if not more, responsible to “stakeholders” – that is, virtually anyone affected by a company’s products or means of production.
It is also quickly becoming accepted dogma. According to a recent Forbes article (11-28-06), “’In order to make a profit in this day and age, companies are not going to exist if they don't have corporate responsibility," says Alan Hassenfeld, the chairman of Hasbro. ‘You have to do the right thing," he says, claiming it helps to recruit and retain employees as well as keep customers.’”
CSR’s proponents paint themselves as the “moral entrepreneurs” who are “doing good” while doing well. The reality is different. When carefully examined, it becomes clear that CSR is immoral, and the firms that engage in CSR will ultimately cause more harm than good.