Benefits Of Maximizing Profits Is Considered An Important Responsibility For A Company

969 Words Mar 18th, 2016 4 Pages
While maximizing profits is considered an important responsibility for a company to accomplish, it is not more important than fulfilling the responsibility of being socially responsible to the society in which it operates. Social responsibility can be defined as the duty of businesses to behave ethically and with sensitivity towards economic, cultural, and social issues. In other words, businesses are socially responsible when they maximize the economic, cultural, and social benefits of all their close associates such as employees, investors, and customers. When companies put all of their focus on profits, this usually brings companies repercussions such as bad reputation leading to a decrease in profits. Companies need to be both conscious of increasing their profits as well as meeting the demands of their stakeholders. Company Q is a clear example of what companies should not be doing. In an effort to stop losing money, this company closed two stores in higher-crime rate areas, provides a very limited amount of health-conscious and organic products to their customers, and declined to donate day-old products to the area’s food bank. The main mistake this company is committing is putting their interests before the interests of customers and employees. Although company’s Q is right in trying to maximize their profits, their actions are not socially responsible because their employees and customers are losing their jobs and access to grocery shopping; they are limiting their…

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