Assess The Impact Of For-Profit Organizations And Their Impact On The Environment And Society

Milton Friedman once said: “There is one and only one social responsibility of business–to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game." One of the core obligations that companies have nowadays– to make as much profit as possible. However, some corporations focus not only on maximizing their own profits but also on bringing certain benefits to a society they operate in. ADD SMTH That is how the new term appeared in the business world – benefit corporations. This is a new form of business entity that is rapidly being adopted not only in the United States but also in other countries in the world. ADD SMTH

The main idea is that while making important business decisions, the board of a company and its managers are required to consider what impact on a society their decisions will have. Nowadays for-profit organizations should create business strategies that would help generate profit and, at the same time, create a positive impact on the environment and society. Different companies have different understanding of what is good for a society. Therefore, the board of a company, its stakeholders and shareholders make their own definition of what it means to be a socially responsible organization. The government

While having high expectations about certain businesses, many consumers understand that most of those companies have an explicit dual purpose: promote a common good in a manner that will help generate more profit and make an enterprise look socially responsible on the market. It is difficult to understand if companies really act out of good will or they just try to look “socially responsible” in the stockholders’ eyes. Thus, it is crucial for people to understand what should be a company’s main priority – generating more profit or caring about being socially