In: Economics
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?
ans....
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.