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In: Economics

In view of the many advantages that business corporations receive from various governments, do business corporations...

In view of the many advantages that business corporations receive from various governments, do business corporations have an ethical obligation to return some of their profits to the public good?

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Various government agencies and policies help corporations to thrive in competitive market. These government policies and agencies help corporations directly and indirectly to reap various advantages.
Hence, some scholars and non-governmental organisations criticize corporation for not giving enough back to society as these corporations tend to earn profits from this society. These corporations must be held liable for paying back some amount of profits.
Further on other side, some scholars hold that corporations are not required to pay back profits as long as these firms obey rules and norms set by the government. Further, they hold that these corporations pay taxes and these should not be subject to further obligation towards the paying back some profits in form of business responsibilities.
But, corporations earn profits from this society and profitability of corporations depends on well being of society. Hence, these corporation must contribute some amount towards the well being of society. It would change mind set of people towards business houses.
Thus, corporate can contribute towards society if it feels safe and sustainable future earning.

Rahul Sunny answered 1 year ago
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