Corporate Social Responsibility
Sunday, December 2nd, 2007Is the most important goal for a business profits or can a business have ethics at its heart? This article delves into what can and should make a business tick.
A business not about making money?
Is it possible for a business to be concerned about anything apart from making money? The idea does not seem to have any sense. We associate the word “business” with profits, losses, money, success, and failure. It is true that a sustainable businesses must make more of a profit than a loss - unless it has an exterior source of funding. However, there is a subtle difference between this and the idea that a business must make a maximum profit, and focus on this at all costs.
Maximum profit at all costs
Without doubt there are businesses - perhaps the majority - that would fit under this category. However, there are also a number of businesses that have alternative goals. Increasingly, there are businesses that see the importance of maximising benefits in addition to their goal of maximising profits.
Corporate social responsibility
Many businesses now highlight the fact that they are “caring” businesses, with other focusses than profit-making. This is seen when large corporations donate a percentage of money to charities, or run their own aid scheme. Some may question whether this is truly altering a businesses’ goals or whether the business is acting to increase its attraction to potential or existing customers.
A clever ploy or real
So is there a way to tell if a business is truly motivated by doing good, or whether they are conning their clients into believing they are? It should be possible with sufficient research and analysis of the business in question, to identify where the goal of the business came into being. However, the opaqueness of many corporations may make this next to impossible. Regardless, the question must be asked whether the motive of the business is important, if the outcome is benefitting society.
A special case: charities and non-profit organisations
Although these would be seen by many as the prime example of a business not about making money, there is a caveat. Some non-profits are so focussed on gaining funds from grant-giving organisations or donations, that the difference between them and profit-focussed business is blurred.
Conclusion
Businesses may or may not be motivated by anything more than making a profit. However, in recent times, businesses have been focussing on increasing their corporate social responsibility, and at least in effect not operating as entities with the sole goal of profit-making. The result has been an increase in funds directed to social causes. Customer demand is likely to be at least part of the reason for this development, and so for this trend to continue and increase, customers should shop where they see businesses operating in an ethical manner.
Real Free Websites believes strongly in an equitable world, and views business as an opportunity to reduce the enormous disparity in incomes and opportunities around the globe. To this end we make a contribution of 25% of all donations to a chosen charity.
