Free

Is Increasing Profits the Only Social Responsibility of Business - Essay Example

Comments (1) Cite this document
Summary
Instructor Date Corporate responsibility Organizational cultures are based on their effectiveness to capture the attention and allegiance of the consumers. Consumers have in them the human nature aspect that requires appraisal before they can make their decisions in terms of which products and services to acquire (34)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.7% of users find it useful
Is Increasing Profits the Only Social Responsibility of Business
Read TextPreview

Extract of sample "Is Increasing Profits the Only Social Responsibility of Business"

Corporate responsibility Organizational cultures are based on their effectiveness to capture the attention and allegiance of the consumers. Consumers have in them the human nature aspect that requires appraisal before they can make their decisions in terms of which products and services to acquire (34). To enable this to happen, many organizations disregard their need for profits and invest more in corporate responsibilities as a marketing tool for their products (34). However, a significant number of organizations embrace the notion that the sole aim of an organization should be generation of profits after which other aims will be appeased by the funds generated. In words by Chadwick & Arthur such organizations rely on their profit levels to ensure that they remain significant in the market (34). Should organization aim at making profits only and disregard other social responsibilities? How does profit oriented organizations impact the society? Pros of profit oriented organizations In an argument by Chadwick & Arthur profit oriented organizations have the abilities to exhaust all the resources available in an environment (56). They require large amounts of resources to be able to fuel their daily activities. For this reason, they require a significant number of human resources. This creates numerous employment opportunities in a given society. Additionally, profit oriented organization generate the economy at a faster rate. They have a large equity turnover ratio as compared to other organizations (Chadwick & Arthur 96). This raises the economy and consequently the living standards of a particular economy. Chadwick & Arthur argues that profit oriented organization generate more in the growth of infrastructure as compared to other companies (112). This is due to their ability to exploit the resources and opportunities preset in a society. They give rise to more advanced facilities and create more infrastructures to efficient their trading activities. This creates an environment that is development oriented. Profit oriented business also play a significant role in raising the trading potential on an area. This is because these businesses greatly attract business partners. Regardless of their stand in community activities, profit oriented business make great business partners. Their organizational culture attracts partnership investments from various institutions. Cons of oriented organizations i. To the environment Organizations have an obvious responsibility of creating an environment conducive for business. According to Chadwick & Arthur it may be a disaster to imagine an environment without responsible organizations. Organizations are responsible for the growth and development of communities (56). The trade in community resources and exploitation of the opportunities in the community creates a community of great potential and growth. However, the environment is also dependent on the responsibility of the organization to fund many development projects. For example an organization may fund construction of schools, hospitals or social halls in an area. This scenario increases the productivity of the involved community. If an organization fails to provide such incentives to a particular community, the environment the community dwells in would remain poor and down developed. Minus organizational involvement in community projects, the environment looses the attractiveness of investors. This is because there will be no development in the infrastructure, the population growth in the area would be adversely affected, there would be no environment appreciation for trading options and business entities would have less investment options. In words by Chadwick & Arthur corporate social responsibility in the environment shapes the technological trends in an environment (89). Minus this involvement an environment will remain backdated in terms of embracing new and emerging trends. It is the duty of organization to raise the status of their dwelling communities. ii. To the exchange benefit relationship It is a general assumption that the social relationship between an organization and its environment determines the business relationship between the two parties. All organizations in the consumer market depend on the better judgment of the market for their success. To influence this judgment, organizations tend to appease the community’s needs and wants by being responsible in their respectable environment. In an argument by Chadwick & Arthur it is human nature for consumers to demand more from organizations if they are to be dependable clients for a specific (146). If an organization fails to be responsible for its own community development, the consumers will also fail to create a working relationship in terms of trade. Chadwick & Arthur it is usually a matter of give and take, whereby an organization is required to give back to the society in return the consumers become faithful trading partners (132). Organizations that disregard corporate responsibility also face disregard from other social entities, investors and other institutions in the trading industry. This decreases the chances of an organization to grow to the expected heights. Their business relationship is adversely affected which may lead to the downfall of an organization. For any organization to be successful in the current market structure there must adhere to the market requirements. One of the market requirements is giving back to the society and having effective corporate responsibility strategies. Work cited Chadwick, Simon & Arthur, Dave. International cases in the business of sport. Butterworth-Heinemann. 2007. Print. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Is Increasing Profits the Only Social Responsibility of Business Essay”, n.d.)
Is Increasing Profits the Only Social Responsibility of Business Essay. Retrieved from https://studentshare.org/management/1473740-is-increasing-profits-the-only-social
(Is Increasing Profits the Only Social Responsibility of Business Essay)
Is Increasing Profits the Only Social Responsibility of Business Essay. https://studentshare.org/management/1473740-is-increasing-profits-the-only-social.
“Is Increasing Profits the Only Social Responsibility of Business Essay”, n.d. https://studentshare.org/management/1473740-is-increasing-profits-the-only-social.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ro
rozella42 added comment 8 months ago
Student rated this paper as
The topic of "Is Increasing Profits the Only Social Responsibility of Business?" is quite often seen among the assignments in college. Still, this essay opens a new perspective of seeing the question. I’ll use the manner for my own example.

CHECK THESE SAMPLES OF Is Increasing Profits the Only Social Responsibility of Business

Business Ethics and Social Responsibility

...are paid low wages, but are expected to do a lot of work. Restaurants should be responsible in their selection of suppliers. Corporate social responsibility can be used by restaurants to improve the quality of life of its stakeholders. Introduction People expect business enterprises to behave in a socially responsible manner and to apply the highest standards of ethics. Ethics can be defined as the study and evaluation of human conduct in the light of moral principles (Credo Reference). It involves making decisions between right and wrong. Business enterprises in all industries are faced with ethical dilemmas. It is...
6 Pages(1500 words)Essay

Social Responsibility in Business

...that exists only to produce goods and services of high quality, earn nice profits, and give job opportunities (Pride, Hughes, Kapoor, 2012, p.52). In contrast, the socioeconomic model is based on recognition that the business has a responsibility not just to its stakeholders but to the general public, its employees, consumers, and suppliers. To illustrate, may firms today not merely accept social responsibility, but take pride in their social responsibility records winning awards in a variety areas, e.g. community involvement, environment, etc. These are such companies as Coca-Cola, Colgate-Palmolive,...
3 Pages(750 words)Essay

Social responsibility of business

... choices will fall and fail. Despite Friedman’s (1970) claims, it is not only possible to run a corporation with the needs of all the stakeholders as part of the decision making process, it is essential in order to create sustainability. Social responsibility is not only about creating benefit in spite of profit, but through creating sustainability the longevity of the business is determined. Friedman’s (1970) theories are not only dangerous on a social responsibility level, but for any corporate structure if the pursuit of profit overrides the longevity created through responsible business practices. In the process of maintaining low expenditures on dairy, supermarkets have put the sustainability of the industry in jeopardy... ]. Retrieved...
4 Pages(1000 words)Essay

Business Ethics & Social Responsibility

...? Business Ethics & Social Responsibility Lecturer Business Ethics & Social Responsibility Introduction Business ethics are moral standardsand guidelines that guide the conduct of business founded on the concept of what is right, fair and wrong. Majority of business people rely on their consciences for decision making and fall back on their own religious and moral backgrounds for guidance. Business people are on the other hand affected by their immediate colleagues and superiors when making decisions and at times feel pressured to behave in unethical manner when aiming to...
8 Pages(2000 words)Research Paper

The Social Responsibility of Business is to Increase Profits

...of a corporations' only role in social responsibility is to "use its resources to engage in activities designed to increase its' profits" (Friedman 1970) in itself may be narrow though it is nonetheless true. While earning and increasing profits will always be the basis of success for any business Friedman's belief that ""business" as a whole cannot be said to have responsibility" (Friedman 1970) is becoming increasingly outdated. More importantly, the public perception of corporations is becoming ever more important. Cutting costs by decreasing employee benefits and...
5 Pages(1250 words)Essay

Business Social Responsibility

...been made as to what should practically be covered under the scope of businesses' social awareness and responsibility. Altman and Post (1995) have gone in so far as illustrating and portraying an emblematic picture of 'socially responsible businesses'. Furthermore, arguments have also been posed to whether or not the business should be held responsible for business welfare, and even if is, is it capable enough to bear this responsibility. An opposite opinion has also been presented by Friedman (1970), who states and demonstrates that a business is...
13 Pages(3250 words)Essay

Business and social Responsibility

...they have a social responsibility to the area where they are operating. Their decision is crucial for the future of the rest of the stakeholders and dependants. They need cooperation from the workers as well as the distributors and stockists, which will help them to increase their productivity and sales. It is up to Business and social Responsibility 2 them how they wish to run the company and what issues and objections they need to overcome. The issues could be varied and may not have direct relation to the company’s primary objective, which is turnover and profitability. Similarly the workers have a huge role to...
4 Pages(1000 words)Essay

Is Increasing Profits the Only Social Responsibility of Business

...profits. As the author of the critical letter points out, both views are relevant in their own right. However, I disagree with an aspect pointed out by Friedman because he contradicts himself. This is when he says that the only social responsibility of businesses is to increase profits provided they are within the law and also without fraud and deception. He further goes on to say that it is not a businessresponsibility to avoid pollution, abolish discrimination and provide employment (Friedman, 1970). That is a very irresponsible statement from Friedman because committing the three...
2 Pages(500 words)Assignment

Social responsibility of business

...into social issues only wastes stakeholders’ funds (Sarkar 2005, p.26). Overall, the nature and character of free economy requires the function of business to be economic and not social and going against this is tantamount to causing confusion. On the other hand, Friedman could as well have been wrong in light of a number of things. His statement ignored that social activities could have profitable gains in the end. As such, Friedman’s statement focused on the short-term costs and downplayed the long-term benefits that could accrue from businesses engaging social responsibility....
2 Pages(500 words)Essay

Social Responsibility in Business

....). Therefore, as customers are drawn more to the companies that take corporate social responsibility, companies that chose not to engage in social responsibility might risk suffering reputational loss. On the other hand, however, the opponents of implementation of corporate social responsibility argue that it has either neutral or negative impact on the financial performance of corporations that choose to engage in social responsibility and fail to increase welfare of such companies. Critics of investment in corporate social responsibility insist that...
4 Pages(1000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Is Increasing Profits the Only Social Responsibility of Business for FREE!

Contact Us