Three business friends discussing over a cup of tea
Three business friends discussing over a cup of tea
Bob : So what do you think about the social responsibility of business, George ?
George : Well, in my opinion, the social responsibility of business is to increase its
profits. By this I mean that companies must make as much money as possible because
shareholders expect maximum return on their investments. Naturally, these companies must conform to the basic rules of society.
Bob : What do you mean by confirming to the basic rules of society ?
George : Well, how shall I put it ?Let's say there is a law requiring companies to reduce
pollution to a certain amount. You see, as far as I'm concerned, companies must conform to that law, but they should not spend extra money on reducing pollution beyond the amount required by that law...
Bob : Right. I see that for you, George, the only ethical obligation of business is to act
within the law and to make profits. Can you tell us what makes you hold such views ?
George : Look, Bob. 1 think that all companies should make profits. As the good old
saying goes, 'business is business'. Any other ethical considerations are unbusinesslike, because they threaten the survival not only of individual corporations but also of capitalism as a whole.
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 he. If you ask me, the business of a company is not only to do business as George here says. It has responsibilities to all its stakeholders. By this I mean its suppliers, its customers, its employees, the local community and society in general as well as its shareholders.
Bob : Sorry, I can't quite grasp what you're saying.
Mark : Well, let me give you an example to illustrate my point. Contrary to what George
thinks, companies should not be interested in profits only. They ought to be managed for the benefit of all its stakeholders. As as shareholder myself, I prefer to receive lower
profits but live in a society with less pollution or less unemployment and fewer social
problems even if that means spending more money on social welfare and the environment than the amounts required by law.
I notice in listening to it again I inserted a few words here or there. My mistake. I can rerecord it if you need it precise.