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This is because all the stakeholders play a great role in defining the role of the business regarding its needs and desires, which go a long way in building its growth (Wight and Morton 155).
The business aim of making profits is crucial and definitely important because it cannot operate without it. Creating shareholder value by generating profits is the focus for many businesses across the world. However, it is important to note that shareholder value should not be the sole purpose for the survival of a business. Mackey believes that putting the customers’ needs ahead of shareholder value leads to a successful business. In a business where the central theme is to make profits, the customers’ needs are a means of achieving the business goals. This is a distorted method of running a business because the stakeholders including the customers are crucial in sustaining the business. Businesses should pursue customer happiness because it is an end in itself, which ensures that a business mission is pursued in higher interest, passion, and compassion for their needs (Tisch and Weber 122).
In addition, a business whose sole purpose is maximizing profits and shareholder value does not fully value the needs of other stakeholders like employees, investors, suppliers, the community and the environment. A business must focus its success by incorporating all the stakeholders since they bring value in all areas. The company leadership should examine the competitive marketplace and other variables to determine how to effectively share with all stakeholders. T.J. Rodgers argues that any money and time spent in charity is a form of extorting investors since the company assets legally belong to them. Many in this view argue that the company management has the responsibility to maximize shareholder value and therefore, any activities that do otherwise are wrong. However, this is a wrong and narrow-minded belief because corporate social
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How to balance between the owner’s interests and social concerns in a business, if at all, the balance has to be created? And is business a separate entity like a human being that has to be responsible and answerable to the society? The whole debate of business social responsibilities emerges from and cultivates in the flexibility and analytical looseness of the business entrepreneurs.
Social responsibility also refers to a company’s obligation to maximize its positive impact while minimizing its negative impact on the society (William & Ferrel, 2011, p. 94). The International Institute of Sustainable Development explains that social responsibility is a term without a single authoritative definition.
This is because the people working in the business depend on it for their livelihood. Suppliers, the local community and customers, are affected by the actions that the business takes. The way the business produces the products and the impact of the product on the environment affect the environment either positively or negatively (Besser, 2002).
Ethics, while clearly evident when examined externally, are usually less clear when viewed from the perspective of those who have to live with the consequences. Friedman’s (1970) indictment against the state of the corporate entity as a socially responsible manifestation, however, denies the ethical responsibility of the corporation and places it in the space that is common to US and UK belief systems on the position of the corporate entity.
the paper will include references to the moral philosophy or social issues that affect my approach to the development of this Code of Ethics. My Code of Ethics will contain the following components: statement of values, and why the principles are non-negotiable, the moral philosophy or social issues affecting my approach to ethics.
'government regulation' or 'self-regulation'.
"Multi-national companies are in business to maximise profits and shareholder value. Social responsibility is not their business, but the duty of governments". This report provides a profound critical elaboration and analysis of this statement and then reaches to a conclusion whether or not government needs to intervene for the purpose of effectuating social responsibility among businesses that are extant mainly for the profit motive.
This essay analyzes the view, in which business have social responsibility seems justified as the operations and the business of an organization is affecting the environment at large. An example could be of a chemical industry that is responsible for manufacturing pesticides but has to dispose of its toxic waste materials in the river nearby.
Critical thinking is an eminent and realistic goal and value. It is based on the abilities, the insights, and the values necessary to that end. It is a way of going around living and learning that empowers the students in quite sensible ways.
They would also like to have a safer working condition, for health reasons.
Apart from these two groups, the stockists of the company also have their share in the company. Their goal is to maximize the company’s sales and at the same time offer an environment friendly