GMAT Essay Topic 616 - "The goal of business should not be to make as big a profit as possible. Instead, business should also concern itself with the well-being of the public." Discuss the extent to which you agree or disagree with the opinion expressed above. Support your point of view with reasons and/or examples from your own experience, observations, or reading.
Author: joiedeviv | Date: August 16, 2008 | Score: 5.5
Formation of the businesses all over the world ranging from smaller ones to big corporations is done with purpose earning money, but as the business grows in size and profit so does its responsibilities for the society and these duties is inseparable for any business to be successful in long run....
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Some people claim that the prime responsibility is to increase the profit of the business while others may argue that the prime responsibility is the social responsibility.The issue is controversial one but closer examination reveals that the prime responsibility is both the profit of the shareholders and also social responsibility for several reasons.
One reason is that shareholders invest money into the corporation inorder to increase their investment.As shareholders contributed the money for the initial capital the prime responsibility is to increase increase the capital ie.by profits.Furthermore if the company shows the profit then it 's brand value increase and the market share also increase.Clearly the objective of organization is to increase the profit.
Another reason is that the corporation gets subsidies from the government such as tax reduction,land allocation etc.additionaly the corporation uses the public roads and other facilities so it is the prime responsibility of the corporation to provide jobs to the local people.By providing the jobs to the local people the standards of living will increase which in turn leads to development of the society.
Perhaps the best reason for my view is Even though corporations objective may be to increase the profit of the business but it should also give high priority to the benefits of the society.Governments or local authorities provide the subsidies etc. for corporations hoping that they don't harm the society. For Example if the business releases harmful gases or effluents in to the environment it is not doing benefits to the society instead creating harm to the society.Some people may claim that the shareholder benefit or company profit is the ultimate objective but in my view the it is the responsibility of the business to increase the profit of business and also not to harm society instead it should help society by providing jobs
In summary, while there are arguments to be made for both sides of the issue, it is clear that the corporation prime responsibility to increase profit of the organisation and also to the benefit of society.Read more