Band 6+: It is argued that companies should focus primarily on maximizing profits for their shareholders. Others contend that companies have a wider responsibility to contribute positively to society and protect the environment, even if it affects profitability. Discuss both views and give your own opinion.

There has been a good deal of controversy around the issue of the responsibilities of businesses. Some people believe companies should concentrate merely on their profit, whilst the others argue that it is their obligation to cope with social and environmental issues. In this essay, I am going to discuss both standpoints and express my own opinion on the issue.

The primary justification of people who assume that businesses should focus only on operating profit, is that companies are established to generate economic gain. Prioritizing their financial status helps them to develop, offer people employment prospects, expand and invest in growth. While attempting to address social problems, businesses may become unprofitable and go bankruptcy, which is detrimental for both government, society and business owners . Secondly, from a broad perspective, environmentally sustainable methods of production can lead to higher prices which are not affordable by low-income families. To illustrate, in 2018 company named Mondelez International (specializes in snacks and confectionery) lost billions of dollars because people refused to buy products which have high prices induced by eco-friendly packaging.

Nevertheless, proponents of corporate social responsibility argue that large international companies that have franchises all over the world, have capability and power to make substantial changes. For example, one of the renowned multinational technology firms, Microsoft is actively pursuing to become carbon negative and zero waste by 2030. Furthermore, declaration of the company motivated the other firms to strive on this issue. Additionally, as people become more aware of these environmental problems, they are inclined to choose ethical and socially responsible brands which promote sustainable, but also cruelty-free products. Businesses which do not take these into account and basically ignoring them face with consequences as boycotting, reputational damage, loss of consumer trust and economic profit.

In conclusion , from my perspective, I believe that while profitable businesses are crucial in our society, industries have to understand that they play a direct role in degradation of social and environmental issues which will also be beneficial for country as it will strengthen the company’s public image.