The Social Responsibility of Business - Essay Example

The objective of any corporation is to legally maximize the returns on investment so that its shareholders primarily can benefit. He maintains that the responsibility of a corporate executive who is employed by the owners of the business is to run the business profitably in accordance with the law. However, he might have other responsibilities as well, such as the responsibility to devote a part of his income to charity, or to have a good behaviour towards his family, or people, in general. These responsibilities, however, are not of the business but the corporate executive's responsibilities.

ConclusionIn a nutshell, it can be stated that even though a business is an artificial personality and can be claimed to have no social obligations, it should be operated in such as a way so as to protect the interests of its stakeholders, as they have contributed resources in the business and are also directly affected by the decisions taken with regard to business matters. All business decisions should be taken without the intention or plan to inflict harm on any member of the society. The environment or the ecological concerns should be paid extra attention to and activities of the business should not lead to the exploitation of any stakeholder.

It is natural that a business is run to maximize its profits or to get the highest return for its investment but this behavior should not be pursued at the expense of the interests of the society and the community as a whole as it may even prove to be unprofitable for the business in the later years. Any social obligation should not be discarded with the view that it is for the government to take up the welfare of society and. It can be stated that even though a business is an artificial personality and can be claimed to have no social obligations, it should be operated in such as a way so as to protect the interests of its stakeholders, as they have contributed resources in the business and are also directly affected by the decisions taken with regard to business matters.

All business decisions should be taken without the intention or plan to inflict harm on any member of the society. The environment or the ecological concerns should be paid extra attention to. It is natural that a business is run to maximize its profits or to get the highest return for its investment, but this behavior should not be pursued at the expense of the interests of the society and the community as a whole as it may even prove to be unprofitable for the business in the later years. Any social obligation should not be discarded with the view that it is for the government to take up the welfare of society and environment.

Behaving and operating in an environment friendly way will only ensure a business’s longevity, increased customer appreciation and a particular social aim will so be achieved. The companies should exercise their power in such a way so that none of the stakeholders come to harm and the objectives of the business is also achieved. It is concluded that the companies are responsible for behaving uprightly so that junior managers or lower-level workers are influenced and motivated to do the same and the moral values of an organization is upheld.