Why business must be socially responsible? Explain.
In today’s interconnected world, it is widely argued that not only should firms endeavor to maximize their profits, but they also ought to focus on the best approaches to fulfill social responsibilities. Accurately, the rationale behind the approaches to social obligations is multifaced, encompassing ethical, economic, and societal dimensions, as presented in the following essay.
Initially, one reason for corporate accountability is the attraction of high – quality job candidates and enhancement in workforce loyalty. This is because the majority of employees are raising awareness about pressing social issues, such as gender equality or human rights, and desire recognition for their values. In other words, contemporary staff tend to prefer corporations who contribute to social improvement through socially responsible practices. For instance, via an anti – racial campaign that highlighted and condemned racial injustices, Google, a global giant corporation, has successfully appealed to a substantial number of qualified applicants and reinforced the commitment, as well as loyalty of current employees. In addition, in attempt to boost employee retention, companies are paying more attention to providing continuous learning and training opportunities in order to encourage their staff to learn new skills and adopt certain values by learning experience platforms.
Another rationale for why businesses should take responsibilities for our society is from an economic perspective that these obligations can be powerful drivers of profitability. Appropriately, entrepreneurs involved in social activities can experience improved brand image, customer retention, and market differentiation. Specifically, companies which participate in community engagement, such as contributions to children development, or environmental conservation, are likely generate considerable public support and significantly promote their brand recognition among the masses, resulting in a broader range of customers and shareholders. To illustrate, Lego, a leading toy manufacturer worldwide, emphasizes its missions and visions that attempt to help children, the environment and local communities by undertaking numerous strategies for philanthropy like the desire to promote the welfare of children, expressed by donations of money or resources, or initiatives aiming at utilizing renewable resources, decline in the greenhouse gases, and response to climate change . As a consequence, Lego is currently enjoying the status of the most reputable firm in the world with larger amount of revenue from global consumers than those of many other famous ones.
In conclusion, it is undeniable that striving for a positive impact on society is becoming a fundamental part of each corporation’s core operations, as they aim to create value not only for themselves but also for broader stakeholders. This orientation will be key to their long – term success and the well – being of society as a whole, as highlighted by various benefits mentioned above.
