Question 2: According to Adam Smith "wealth does not live in a vacuum, and that people acting in their own selfinterest will eventually act in the best interests of the greater public good". Discuss this statement in relation to Corporate Social Responsibility. Corporate Social Responsibility (CSR) can be defined as the "economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time\" (Carroll and Buchholtz, 2009). CSR means that business organizations have responsibility that go beyond mere profit making and encompass voluntary activities that affect the people, their community and the natural environment. Adam Smith's statement as quoted in the question is true to a larger extent due to the fact that the strategic benefit of CSR is that acting responsibly towards the society can leverage advantage in both the demand and supply aspects of a business (Worthington and Britton, 2009). CSR in a company may lead to cost reduction, from which customers might also benefit, if it results in price fall (Carrol and Buchholtz, 2008), in this way more products might be available to the people, who could not afford them before. According to the iron law of responsibility, corporate power must always be checked by social responsibility, this is because those who do not use power in a socially responsible way will eventually lose it (Referencecom 2020). Therefore, even if a businesses primary motive is not CSR, government policies ensure that they participate in CSR to the benefit of the general nnklir