Business Finance Homework Help

What is an example of a company doing good by doing well—that is, making profits—and for that reason improving the general welfare? How can the example be converted into an argument against the theory of the corporation as having social responsibilities?

Reply:

Yoobi is a company that is doing good by doing well. They provide supplies for schools throughout the US who have students who need supplies. For every item purchased, there is an item added to a Classroom Pack. Once the Pack is full it is sent to one of the needed schools. Their slogan is, “One for you, one for me,” and they have an exclusive partnership with Target. They are improving the general welfare by helping the schools with supplies so that the kids have what they need and the teachers do not have to use their hard earned money on their classes supplies.

An argument against this could be that the company charges higher prices for the goods sold and turns some consumers away from their products. Even though this may be true, the overall impact that the company has on the US schools who are in need actually helps their image, may help them connect to consumers better because they like the cause, and will cause repeat and additional purchases, increasing overall profits.

Reply:

An example of a company doing good by doing well – making substantial profits – and therefore improving the general welfare of the populace would be the Amazon corporation. Individuals across the globe are familiar with the company Amazon and their industry. As the number one ranked e-retailer in the world Amazon has made retail shopping significantly more convenient for consumers and improved the way people receive and sell goods. Due to the fact that in today’s world, people live much more industrious lives, Amazon has improved the overall welfare of individuals by providing a service that caters to consumers, as well as offering thousands of jobs from a successful, booming industry.

Corporations do not necessarily need to focus on or prioritize social responsibilities. Especially, if the organization’s success benefits the populace. Generally speaking, companies do not have a compulsory duty to serve social responsibility needs. In the case of Amazon, whether they do or do not have social responsibility policies, would not affect their overall business, neither would it change the way consumers view the company. Consumers expect a certain service from Amazon, and it is safe to say they do not expect or demand social responsibility policies from the corporation. Thus, the theory that Amazon has obligatory social responsibilities is null.