Social Responsibility of Business vs Increase Its Profit - Term Paper Example

The Social Responsibility of Business is to increase its profit Introduction Every business entity, apart from ensuring the effective and efficient performance of its primary and core business objectives and operations, it also does possess some other connected responsibilities and duties towards the masses and society in general. However, those responsibilities or duties would not be compelled to any particular business entity operating under the free economy system, but they are merely expected by the society, the people living in the society and the organization working for the betterment of the overall human society. They can include donations, charities, social awareness programs, poverty alleviation, pollution control, combating unemployment and so on. Argument Evaluation The issue highlighted in the argument is that what must be the right, legal and ethical ways for providing social contributions and fulfilling social responsibilities on part of the large and medium sized business organization and its employee, most importantly, an employee who has assigned the designation of corporate executive. The corporate executive here refers to the personnel who are responsible to act as the agent for the owners of the organization. Furthermore, the overall political, social and economical implications and after affects in consequence to the actions performed by the corporate executive of the organization. And how his or her actions are being regarded as the tax imposition authority on one hand and the spending of such tax proceeds on the other hand. The argument addressed the issue regarding the fulfillment of various social responsibilities by the corporate executive of business organization, independently under his own hand, but at the cost of the Organization’s profit and its best interest. Rather, a corporate executive who should act according to the guidelines of his or her boss, takes actions on his own, like, increase business expenditures beyond the amount normally incurred in most of the similar business scenarios, to combat the affects of pollution on the environment at the ultimate cost of the organization interest that would adversely affect the overall organization profits. One of the major evaluations of the argument directly compels towards the instinct of human and his or her conscience and emotional feelings that led him or her towards the betterment of society at large, by performing mere actions autocratically which are at the expense of the organization goodwill and survival. But on the other hand, that action and gesture performed by corporate executive would tremendously impact the lives of under privileged persons more positively and favorably. Even though, the political and economical implications of such actions are conclusively, negative and compromising the overall business ethics and practice, as a result of the mere action of one person, who is not incurring his or her own money to fulfill this particular social cause but the moneys of the organization. The encouragement of this particular action would not be valid and sound as they would adversely affect the rights and privileges of stakeholders of the Company including, its employees, shareholders and customers. As, successful and efficient business staff at all levels of the organization must believe and understand that the ultimate success, glory and growth of the organization would not dependent on the sole profits figure but it is also affected by addressing the inherent and timely needs and requirements of the people living in the business society (Tuck School of Business, 2014). Creation of counterargument An effective, fruitful and rather more positive counterargument over this particular argument would be interference of government bodies to design a reasonable and just legislation, constitution or jurisdiction measures, over the efforts of social contributions and programs by the certain organization. The suggested legislation should logically define the minimal threshold for the business organization, the implication of which would be, after exceeding that defined threshold, all of the business organization must remit or spend certain worth of their existing revenues or say, net profit for various social programs and contributions. Therefore, in that way a definite boost up would be injected and ensured into the society by the social activities of that targeted organization. And on the other hand, one of the major weaknesses as highlighted in the above argument, the hidden cost compromising the interest of the organization over the expenses of its various stakeholders is also avoided The initiative of the state governmental body must lie towards the ultimate benefits of the society at greater extent and providing basic amenities to the poor class and affected individuals of the society. Moreover, pre identification of various sub divisions of social business responsibilities should also be recommended by the constitutional state body which may include, Poverty alleviation program, donation, flood relief programs, children education, unemployment combating schemes, charities, sports welfare and any other categories can be formed as found suitable and relevant. Implementation of such constitution would precisely and vividly overcome and prevent the basic shortcoming of the argument that highlights the implications of corporate executive as tax imposing authority and at the same time being treating him or her as the person spending the resultant tax proceeds from such act of tax imposition. As, this act is completely against the legal and official boundaries of any states law because the ultimate authority persist with the government when it comes to the subjects like tax imposition and expenditure of any tax proceeds. Thus, after the interference of state law enforcing body in this regard, a comprehensive control and monitor would be substantiated and achieved as all of the finance incurred and services rendered under the social responsibilities program, by the various business organization operating under the free economy system, would be completely accountable, recorded and justified. And most important, the overall interest and glory of the organization and its various stakeholders are being prevented and safeguarded in the most dynamic and secure way. As, this step of law enforcing body would surely encourage the positive and sound business practices by most of them, increased the overall potential of society and firms, both at greater limits and the society most pressing issues and problems would be resolved and they would ultimately reach the levels of self actualization (Stephen M. Ross School of Business, 2014). And as wisely mentioned, the Social Responsibilities and duties of business entities towards the society in which it practice, truly provides an essential premise and foundation for understanding its developing social perspective and role and facilitates it in the long run to assess and reassess its future business pathways (Heald, 2005). Conclusion To sum up, businessmen and business executive primarily target and foresee enhancing and improving business performances and achievements in terms of increased net profit figures of the Company, overall boost in gross sales figures of the entity, building a diversified team of professionals, qualified and competent work force and developing the most cost efficient supply chain team of the business. But on the other hand, at times, most of them marginally strives and gives less importance towards the area of social responsibility of the business and social contributions injected by the business towards the people of society. Therefore, now it is very clearly and precisely proved that the real growth and development of business organization effectively lies in showing and remitting the ultimate signs of excellence, support and helping hand towards the pillars and foundation of the positive development of the society and its people. References or Bibliographies Tuck School of Business | Ethics and Social Responsibility Requirement. (2014). Tuck.dartmouth.edu. Retrieved from https://www.tuck.dartmouth.edu/mba/required-curriculum/ethics-and-social-responsibility Home - Stephen M. Ross School of Business. (2014). Bus.umich.edu. Retrieved from https://www.bus.umich.edu/ Heald, M. (2005). The social responsibilities of business (1st ed.). New Brunswick, N.J.: Transaction Publishers. Read More