1962, Nobel Prize winner Milton Friedman was against the Corporate Social Responsibility and felt that the basic aim of business is profit maximization. In his book Capitalism and Freedom he wrote, "The view has been gaining widespread acceptance that corporate officials……have a social responsibility that goes beyond serving the interests of their stockholders….This view shows a fundamental misconception of the character and nature of a free economy, there is one and only one social responsibility of business – to use the resources and engage in activities designed to increase its profits so long as it stays within the rules of the game." Though, the statement reflect a narrow-minded and egocentric view about business. The statement has been constantly argued by economist and business managers across the world.

With advancement and knowledge, business entrepreneur has took notice of the importance of Corporate Social Responsibility. In the recent time, there has been a growing concern among business communities about Corporate Social Responsibility. Companies like Johnson & Johnson also believe that its the company’s responsibility to be just, fair, reliable, and respectful, in dealing with all its constituents .

In 1971, the Committee for Economic Development defined Corporate Social Responsibility as “Today it is clear that the terms of the contract between society and business are, in fact, changing in substantial and important ways. Business is being asked to assume broader responsibilities to society than ever before and to serve a wider range of human values. Business enterprises, in effect, are behind asked to contribute more to the quality of American life than just supplying quantities of goods and services.”

Over the period, CSR (Corporate Social Responsibility) has been widely discussed. There are those who oppose CSR and those who are in favor of CSR. The main reason for its opposition by economist is that: they believe Corporate social responsibility encourages incompetence by leading business managers to involve themselves in areas beyond their expertise – that is, improving society’s drawbacks.

The ever increasing market power has made CSR mandatory both for the government sector and private sector. In the years to come, issues like corporate liability, exposure of corporate information and corporate ethics shall become increasingly important factors for attentions. Therefore, besides diversification business sector need to develop new tools to calculate performance, ethical codes and better awareness techniques. Hence, business managers will have to focus their attentions on informational, social, ethical and environmental facets.