Question

Should businesses attempt to solve societal ills, or should businesses merely maximize shareholder wealth? Some individuals argue that the purpose of a business is to make a profit, and maximize shareholder wealth, while others argue that a business has a corporate social responsibility to go beyond the financial interests of shareholders to support social causes.

On which side of the debate do you fall? Explain your position.

Answer 1

I strongly feel that a company is in the market not just to make money rather to contribute to the society as well. The company has to understand that performing corporate social responsibility would indirectly benefit the company itself. The image of the organization in the market would increase, people would have more faith on the products and services of the company, free publicity would be there i.e. word of mouth publicity and the sustainable work environment is very necessary, the raw materials that this nature provides these companies are essential for continuous working of these organizations and hence companies should view CSR activities from business perspectives as well and not only from charity perspective.