"Some people believe that corporations have a responsibility to promote the well-being of the societies and environments in which they operate. Others believe that the only responsibility of corporations, provided they operate within the law, is to make as much money as possible."


Do corporations have a responsibility to promote the well being of the societies and environments they operate? Some may believe they do; others say they are heading towards maximum profit. In reality, business and society are not two distinct entity. For a corporation to run successfully, it has to ensure the society in which it operates must be conducive to conduct its business. Hence it is imperative for the corporation to provide a healthy society for its survival.
Today, there are many corporations across the world. Every one of them is trying to reap hefty profit from its customers. In the capitalist society, it is indeed necessary for the corporations to make profit. But often, they tend to forget about their employees and people who are indirectly connected to business. In that case, the locality at which the corporation is headquartered might take a toll. It could even be theft or vandalism of an outlet that belongs to the corporation.
For example, we all know the silicon city San Francisco. Even today, it still remains as one of the top start-up hubs in the world. However, if we walk through downtown, we can see many homeless people in the streets. If we look back ten decades ago, everyone rushed to California and wanted a piece of it. And it created a housing crisis. The housing prices skyrocketed. Top executives, CEO’s managed to live in the wealthy areas. However, common people and daily wage labours either have to live in mobile houses or have to leave the city. Today, we can see many articles mocking the silicon city as cesspool of California. In last 2-3 years we can also see a large exodus of tech people leaving California to Austin.
There are some success stories on how corporations look at their employees. For example, Korean conglomerate giant Samsung provides house and dormitories for its employees. They provide transport for commuting to the workplace and home. Because they provide huge incentives to the employees, they save a large chunk of corporation tax. Their profit doesn’t get affected. Seeing this trend, tech giants like Amazon (Seattle, USA) have started provided shelter to the homeless people in Seattle to make sure that the locality remains safe.
In conclusion, corporations and society are interconnected. When a society is healthy, corporations can make profits in long run. Compromising on social responsibility can have an adverse effect on these corporations.