Question

are corporations responsible for rising inequality? role of

government? The topic is about globalization inequality. Please type the answer about 300 words. Thanks

Answer 1

I don’t think corporations are responsible for rising inequality. Corporations are institutions for creating value and exchanging the value with consumers. In this way corporates create profit and they stake the profit with its stakeholders. Therefore, corporates are very crucial for creating wealth through the production of goods and services.

Corporates would like to reduce cost in order to increase profits. Higher profits ensure sustainability of the corporate. While perusing cost reduction, corporates increase economic efficiency by utilizing economic resources effectively and efficiently. Corporates would like to globalize production and operations in order to reduce cost, increase efficiency, increase effectiveness and earn a higher profit. In this way, corporates ensure the best utilization of available resources and value creation. I don’t think this process creates inequality. Rather, this process creates wealth, reduces inefficiency, and helps to utilize economic resources in a better way. In the absence of corporates, wealth creation will be seriously affected.

I think it is wrong to blame the corporates for rising inequality. Corporates create jobs in many developing and underdeveloped countries like India, China, Mexico, Indonesia, Bangladesh, etc. by moving their production processes and other processes there. These create a win-win situation for both the corporates as well as the workers in these countries. Corporates reduce costs in this way and the workers get employment and a higher standard of life.

The onus to create an equal society lies on the government and the not corporates. The governments need to implement and execute policies to help the marginalized sections of the society and help them improve standards of living. Corporate can help in this process; however, the government needs to take the responsibility of achieving an equal society. The government needs to spend its tax revenue to spread education, skill building, basic health, and nutrition, etc. to a healthy, educated and skilled workforce. This will reduce inequality.