Nowadays, there is a controversial debate regarding the social responsibility of big corporations. As far as I am concerned, while firms are committed to their shareholders to increase their investment and generate profits, businesses are responsible to the community as their stakeholders and the reasons behind my reasoning will be discussed in this essay.
Firms that are actively engaged in increasing the social life of the community could benefit from this practice in a number of ways. Firstly, people would notice the social activities of firms and become loyal customers, even if it means they have to pay more. For instance, in the latest trends in the Wallstreet, people invest in socially responsible funds, which have a strict code of conduct to not invest in any irresponsible firms, such as tobacco or gambling. These trends indicate that people have no problems with losing profits as long as their investments benefit society. Secondly, this practice would also help with human capital, since not only more talented workforces are interested to work in such a firm, but also current employees become more loyal to the firm' s value and would not leave for better salaries or perks. Thus, by helping the lives of people, businesses could raise their social values, which in the long-term means more profitability and growth.
Admittedly, firms pay their duties by following the law and paying taxes, which covers a significant part of the government' s budget. Authorities could spend the money based on the needs and requirements of the nation. However, critics believe that taxes are not enough and big businesses, such as Facebook, Google, and Amazon, have other responsibilities to people, as their general stakeholders. For instance, gender equality, minority hiring or helping with educational systems are some of the requests asked by activists from big corporations.
In conclusion, I think firms should consider actively increasing the life of the society, since not only it would be beneficial for them in the in long-term, but also it is part of their indirect responsibility to society.
Nowadays, there is a controversial debate regarding the
social
responsibility of
big
corporations. As far as I
am concerned
, while
firms
are committed
to their shareholders to increase their investment and generate profits, businesses are responsible to the community as their stakeholders and the reasons behind my reasoning will
be discussed
in this essay.
Firms that are
actively
engaged in increasing the
social
life of the community could benefit from this practice in a number of ways.
Firstly
,
people
would notice the
social
activities of
firms
and become loyal customers, even if it means they
have to
pay more.
For instance
, in the latest trends in the
Wallstreet
,
people
invest in
socially
responsible funds, which have a strict code of conduct to not invest in any irresponsible
firms
, such as tobacco or gambling. These trends indicate that
people
have no problems with losing profits as long as their investments benefit society.
Secondly
, this practice would
also
help
with human capital, since not
only
more talented
workforces
are interested
to work in such a
firm
,
but
also
current
employees become more loyal to the
firm&
#039; s value and would not
leave
for better salaries or perks.
Thus
, by helping the
lives
of
people
, businesses could raise their
social
values, which in the long-term means more profitability and growth.
Admittedly
,
firms
pay their duties by following the law and paying taxes, which covers a significant part of the
government&
#039; s budget. Authorities could spend the money based on the needs and requirements of the nation.
However
, critics believe that taxes are not
enough
and
big
businesses, such as Facebook, Google, and Amazon, have other responsibilities to
people
, as their general stakeholders.
For instance
, gender equality, minority hiring or helping with educational systems are
some of the
requests asked by activists from
big
corporations.
In conclusion
, I
think
firms
should consider
actively
increasing the life of the society, since not
only
it would be beneficial for them in the in long-term,
but
also
it is part of their indirect responsibility to society.