Thread: Globalization
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Old 06-17-2007, 05:05 AM   #23 (permalink)
Harry Plopper
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Re: Globalization

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It is not the role of business and commercial enterprises to distribute the wealth they create to anyone other than their stockholders.

Claiming that the one and only role of a corporation is to make profit for the shareholders only is ... have to put it ... very brave.

What about corporate social responsibility?

Don't you think a corporation owes something to society?

Some corporations are social responsible - mainly due corporate ethics based on corporate values & visions. And many are not.

Why social responsibility is an important factor?

Why a corporation is able to make profits? Because a state - which is currently the ultimate representation of society as a whole - allows corporation to make a profit. Mind communist countries where corporations & companies haven't got a green light for operating (and making profit).

OK, back on track ... Today every serious corporation is responsible not only to their shareholder but to many parties eg. shareholders, business partners, employees, customers, state, local community, etc.

I'm not claiming they have to distribute some of their profit to those parties (although in some cases they are obligated - eg. state & local taxes!), but in some way they are responsible to take all these parties in account.

Eg. state is getting tax payments, local communities some donations, business partners some rebates, customers some extra services or treatments, employees some material benefits or awards, etc.

Many times corporations are patrons to some activities (eg. art, sport, medical researches, humanitarian actions etc). Talking about donations here, not sponsorships where a corporation benefits directly.

Responsible corporations are aware they have to give something back to society - not only taxes & wages. Usually state introduce lower taxes on profit & allows low wages to please a corporations, yet in such case IMO there is moral duty of a corporation to pay off to the society and state in an alternative ways (donations, patronages, etc).

Don't you think capital is obligated to some ethics & morality?

And if all corporations were a bit more moral & social responsible the globalization would be much more pleasant & with less side effects.
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