Question

2-3 paragraph response.What is an example of a company doing good by doing well—that is, making profits—and for that reason improving the general welfare? How can the example be converted into an argument against the theory of the corporation as having social responsibilities.

Answer 1

Solution:-

As classic example of a company doing well financially and for that reason improving the general welfare is Apple Inc. who recently donated 10 million N95 masks among the COVID-19 pandemic. Apple Inc. is one of the most profitable companies in the world with a market cap closing in on $1 trillion. When the world is suffering from this crazy virus, the companies like Apple have come forward and contributed to the welfare of society in ways like donating masks, ventilators, food for the need, etc.

Even if we put the current extraordinary situation aside, there are many companies that acknowledge their corporate social responsibilities and contribute to society in multiple ways such as eductation, healthcare, infrastructure, etc. Thus, the companies's ability to make profits make them able to do well for themselves as well as the society that they are a part of.

Counter-argument:

'Charity is important'. Just like this statement, the beliefs that corporates have social responsibilities are true only to the extent where they are not forced upon. Every company should have the freedom to decide if they want to contribute to the social needs of societies that they are a part of and to what extent. When the corporate social responsibilities are forced upon companies, it becomes anti-growth and is against the principles of free markets and capitalism that have resulted in such successful; modern economies.

Companies should be trusted upon to decide if they want to and by what extent they would like to make contributions for social causes. This approach doesn't hurt them financially, encourages investment, job creation and long-term good for the same society. Social responsibilities that are forced upon companies kills investment, hurts job and destroys growth and should be avoided at all times.

If a company wants to contribute socially, good enough but if it doesn't, it should not be looked down upon.