social responsibility of business
Business is for Everybody’s Benefit
A business should not just look to increase profits for the stockholders but more so look at the well being of the customers, employees, suppliers, investors, vendors, communities, and the environment. Some businesses might argue that putting the investors first will lead to a more successful company. Businesses do not flourish by putting all of their attention on just the shareholders alone. As T.J. Rogers, founder and CEO of Cypress Semiconductor, explains in his article, Put Profits First, “It is…simply good business for a company to cater to its customers, train and retain its employees, build long-term positive relationships with its suppliers, and become a good citizen in its community.” The social responsibility of business is to benefit not just the stockholders but also all of the constituencies. Some people believe however that it is not intelligent to put the investors second. T.J. Rogers says that shareholders are a huge part of the business world and it is important to keep them happy. He goes on to say that shareholders own stock voluntarily. If they don’t agree with the policies put into place at the company they can vote to change them, or they can simply sell their stock. In Al Dunlap’s article, Putting Shareholders First, he discusses how he believes that it is the companies’ social responsibility to make money. He goes on to say, “If you are not in business to make money, then you are totally misplaced in your career” (Dunlap 1). Dunlap explains how he believes that businesses have an obligation to deliver good products and services for which there is a need. He does not in anyway believe that a company should do anything to help its community. Businesses should not be wasting shareholders money by spending money donating to charity; he clarifies this by saying, “If you want to conduct social experiments, join the Rotary Club or a church group.”
John Mackey, cofounder/CEO of Whole Foods Market,
A business should not just look to increase profits for the stockholders but more so look at the well being of the customers, employees, suppliers, investors, vendors, communities, and the environment. Some businesses might argue that putting the investors first will lead to a more successful company. Businesses do not flourish by putting all of their attention on just the shareholders alone. As T.J. Rogers, founder and CEO of Cypress Semiconductor, explains in his article, Put Profits First, “It is…simply good business for a company to cater to its customers, train and retain its employees, build long-term positive relationships with its suppliers, and become a good citizen in its community.” The social responsibility of business is to benefit not just the stockholders but also all of the constituencies. Some people believe however that it is not intelligent to put the investors second. T.J. Rogers says that shareholders are a huge part of the business world and it is important to keep them happy. He goes on to say that shareholders own stock voluntarily. If they don’t agree with the policies put into place at the company they can vote to change them, or they can simply sell their stock. In Al Dunlap’s article, Putting Shareholders First, he discusses how he believes that it is the companies’ social responsibility to make money. He goes on to say, “If you are not in business to make money, then you are totally misplaced in your career” (Dunlap 1). Dunlap explains how he believes that businesses have an obligation to deliver good products and services for which there is a need. He does not in anyway believe that a company should do anything to help its community. Businesses should not be wasting shareholders money by spending money donating to charity; he clarifies this by saying, “If you want to conduct social experiments, join the Rotary Club or a church group.”
John Mackey, cofounder/CEO of Whole Foods Market,