Question

As you learned in Chapter 4, corporate social responsibility is the concern businesses have for society. As you are aware, not everyone goes to work in business. Some choose to work in the public sector and some go to work for nonprofit organizations.

Some people say that businesses do not do enough to help society. Many businesspeople disagree and say that they do more to help others than nonprofit groups because businesses not only provide products needed by society but also provide jobs for people rather than giving them charity.

1. In your opinion, do businesses do enough for society? Why or why not?
2. How could business (in general) and nonprofit organizations better work together?
3. What is an example of an business that 'does good' while also being profitable? (Notice that I am asking for a business. Nonprofits are organizations but do not fit the definition of a business so charities and similar should not be used as examples here.)

Answer 1

Warren Buffet once said "If you are in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the remaining 99%." The purpose of any business is not only to make profits but also to be responsible for their respective actions. The management of any business that makes decisions must understand that their decisions affect not only them but the society as well. Social responsibility is the duty of every business.

Social responsibility means voluntary efforts to be made by businesses to contribute towards social well being. Non profit organisations also play a vital role in social and economic well being. In my opinion, businesses do work for social well being in their own way. But their efforts are mostly limited. There are only few businesses that make much profit and sincerely uses a part of that profit for the society.

Partnering with non profit organisations can benefit the business in these ways,

• Then the business can reach a whole a audience.
• It can increase the company morale.
• The business can create a good image for itself.
• The gap between big businesses and commom people reduces.

There are many benefits the community gets by such a collaboration,

• It can raise awareness for a common social cause
• More funds can be obtained, so more service can be given to community.
• New ideas can ignite with people of different backgrounds collaborating

The best example of businesses doing good for the society are companies like Google, Microsoft, Ben & Jerry's, Lego etc. Let's take the example of Microsoft.

This company was founded by Bill Gates who now spends his time in all philanthropy. Microsoft started giving program in 1983 when the fledging company raised $17000 just for social upliftment of needy.

According to their philanthropy webpage, Microsoft has not only given their time (the employees have spent nearly 5 million hours volunteering in last 13 years) but also hefty cash.

This program gave $1.6 billion in 2017 and is at the target to $2 billion in 2020 for social welfare and well being. They have created 'Microsoft Philanthropies', which is an initiative that works combinely with governments, businesses and non profits