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

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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)…
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Is Increasing Profits the Only Social Responsibility of Business
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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
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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.

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