"There is only one responsibility of business, namely to use its resources and engage in activities designed to increase profits." Do you think corporations, by indulging in social responsibilities, are compromising their core resource utilisation and production responsibility by diverting resources to social endeavours?
Introduction
Business principles are based on efficient utilisation of resources, decreasing cost and increasing sales, and improving profit.
17 words
Main Body
The activities of businesses such as social responsibilities leads to — costs on developing the society and giving back the profits earned and distribution to society.
However These are necessary because:-
i) A business forms part of society and giving back to it is an ethical decision
ii) Stakeholder capitalism demand the division of all people in the business — shareholders, employees and society at large.
iii) Helps in equitable resource wage and future prospects of business are increased.
iv) Business profit and brand value depends on how they are perceived in the society
The Tata Group is perceived as good and ethical and their product are trusted due to their social responsibilities. This has helped them to be a market leader over 100 years.
Conclusion
Therefore a business must not think of social responsibility as diverting resources but could responsibly as directing resources to unproductive social endeavours but a future investment into the foundations building of the company.
33 words
- Clear enumeration of business principles
- Acknowledges both profit motive and social responsibility
- Recognizes the ethical dimension of business
- Structured approach to the problem
Aditya Agarwal
Business Ethics and Corporate Social Responsibility
Corporate Social Responsibility
Business Responsibilities and Social Obligations
175
Total words
5
Paragraphs
analytical and evaluative
Tone