Three business friends conversing over a cup of tea.
BOB: So what do you think of social responsibility of business George?
GEORGE: In my opinion, the social responsibility of business is to increase its profits. I mean that companies must make as much money as possible because shareholders, i.e companies expect maximum profit from their investments. Naturally, these companies must conform to the basic rules of society.
BOB: What do you mean conforming to the basic rules of society?
GEORGE: Companies, for example, must conform to the law obliging companies to reduce pollution when doing business to a certain amount without spending extra money.
BOB: Right. I see that for you, George, the only ethical obligation of business is to act within the law and to make profits.
GEORGE: Yes, I think that all companies should make profits. As the old saying goes, “BUSINESS IS BUSINESS”. So, any other ethical considerations are unbusinesslike.
BOB: Your reactions to George’s opinion, Mark?
MARK: I’m sorry, but I hold a completely different view about what the social responsibility of business should be. For me, the business of a company is not only to do business but it has responsibilities to all its stakeholders. I mean its suppliers, its customers, its employees, the local community and society in general as well as its shareholders.
BOB: Can you give us an example?
MARK: Companies should not be interested in profits only. They ought to be managed for the benefit of all its stakeholders. As a shareholder myself, I prefer to receive lower profits but live in a society with less pollution or less employment and fewer social problems.
