Does Business Have a Social Responsibility? Are Profits the Only Measure That Should Be Applied to Corporate Success?

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Topic: Does business have a social responsibility? Are profits the only measure that should be applied to corporate success? Discuss using examples such as the continuing manufacturing of 4WD vehicles; resistance to a global scheme to curtail carbon production; or CEO salary levels. (1000-1200 words) It has been portrayed in the media to some degree businesses should have a social responsibility. This responsibility is said to apply to customers, the environment, local communities and society in general. If a business advertises its good work to the public it will gain a good reputation and thus resulting in people being inclined to purchase their goods and services which results in more profit for the business. Profits are not the only measure that should be applied to corporate success. Factors such as reputation and shareholders play an important role in the image of the company. Even though the effects of the financial crisis were negative, and caused many people to lose their jobs, CEOs are still receiving a large salary, which portrays a negative image on their company. This essay explains the effects of businesses responsibility to the environment, that profits are not the only measure that should be applied to corporate success and CEO’s salaries applied to businesses responsibilities. There has been a great deal of controversy in the media over whether businesses have a social responsibility. Businesses already have a responsibility to follow ethical standards and the law. However recent media coverage has demanded that large business should also have a social responsibility. This concept is depicted in Richies slogan ‘Richies, where the community benefits’ (Richies Stores PTY LTD, 2010). Where Richies donates 1% of every shopper’s spending to the community. This sets Richies apart and the goodwill attributed to its brand and has lead other

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