Some people believe that corporations have a responsibility to promote the well-being of the societies and environments in which they operate. Others believe that the only responsibility of corporations, provided they operate within the law, is to make as much money as possible
Money is the primary goal of a corporation. Corporations contribute to society economically. However, in the changing times corporation has a responsibility towards society and environment apart from maximizing profits.
Activities of a corporation have a direct impact on its stakeholders. Stakeholders include investors, employees, partners, government, community and environment. A corporation has a dual responsibility, to make profits and contribute to the development of society as a whole. Many corporations and manufacturing plants use hazardous chemicals for their processes. These toxic chemicals if not disposed properly contaminate both air and water. Water in streams gets contaminated due to run off. Polluted water can affect the local flora and fauna in addition to the dangers posed to the aquatic species. The chemicals like lithium and sulfur are known to inhibit the reproduction in some species thus making them endangered. The harmful gases which are generally the by -product of several chemical processes pollute the air. Use of Chlorofluorocarbons by corporations has lead to ozone hole and global warming. It has increased the risk of skin cancer and other respiratory diseases.
Corporations have a responsibility towards the society and environment. The regulation and safety procedures have to be followed rigorously by them to reduce the harmful effects. This can be reiterated by examples such as gas spill in gulf by BP. It not only added costs to the corporation to cleanse and pay in fines but also affected the market shares. Similarly, plastics are often used for packaging by corporations are non-biodegradable and can be a threat to the environment. Minimizing the usage of such materials and promoting eco friendly materials will help a corporation in the long run. Compliance with the laws will provide an opportunity for the corporation in the long term by providing them tax breaks.
Another reason corporations can be beneficial to the society is by creating better working conditions for the employees and support for a cause. By this means, the corporation can earn a good reputation, thus increasing the educated workforce and consumer base. Better health plans and policies will help build a motivated work force, which will increase the profits. Being a proponent for a cause or charity will help increase the customer base and loyalty of customers towards a corporation.
any benefits to a society from corporations?
Money is the primary goal of a corporation. Corporations contribute to society economically. However, in the changing times corporation has a responsibility towards society and environment apart from maximizing profits.
Activities of a corporation have a direct impact on its stakeholders. Stakeholders include investors, employees, partners, government, community and environment. A corporation has a dual responsibility, to make profits and contribute to the development of society as a whole. Many corporations and manufacturing plants use hazardous chemicals for their processes. These toxic chemicals if not disposed properly contaminate both air and water. Water in streams gets contaminated due to run off. Polluted water can affect the local flora and fauna in addition to the dangers posed to the aquatic species. The chemicals like lithium and sulfur are known to inhibit the reproduction in some species thus making them endangered. The harmful gases which are generally the by -product of several chemical processes pollute the air. Use of Chlorofluorocarbons by corporations has lead to ozone hole and global warming. It has increased the risk of skin cancer and other respiratory diseases.
Corporations have a responsibility towards the society and environment. The regulation and safety procedures have to be followed rigorously by them to reduce the harmful effects. This can be reiterated by examples such as gas spill in gulf by BP. It not only added costs to the corporation to cleanse and pay in fines but also affected the market shares. Similarly, plastics are often used for packaging by corporations are non-biodegradable and can be a threat to the environment. Minimizing the usage of such materials and promoting eco friendly materials will help a corporation in the long run. Compliance with the laws will provide an opportunity for the corporation in the long term by providing them tax breaks.
Another reason corporations can be beneficial to the society is by creating better working conditions for the employees and support for a cause. By this means, the corporation can earn a good reputation, thus increasing the educated workforce and consumer base. Better health plans and policies will help build a motivated work force, which will increase the profits. Being a proponent for a cause or charity will help increase the customer base and loyalty of customers towards a corporation.
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