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

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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 …show more content…

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

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This principle would have the closest relationship with New Belgium’s kindling social, environmental and cultural change on a business role model. The facility has created a successful business model from the very beginning, taking into account the social, environmental, and cultural impacts of a growing business. With the understanding of these impacts, the business is able to grow and understand sustainability in more depth. With New Belgium’s involvement in non-profits and organized events such as the Tour De Fat, they are incorporating local people as well as helping with good causes. The brewery also incorporates their employees in a decision making process through a website they call the, “mothernet.”

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Modern day businesses have to be socially responsible; actions are taken to satisfy customers who might have a cause that they care deeply. Social responsibility occurs when a person or a company acts in an ethical and sensitive way towards important social issues of the day such as economic, environmental, and cultural concerns. Many businesses have a section of their website or business literature dedicated to social responsibility. Companies proudly detail the steps they are taking to address concerns that people have with the environment and economic issues. Having companies act in a socially responsible way is necessary because their actions have a tremendous positive impact on society.

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Organizations that operate for-profit healthcare argue that they offer patients more options and flexibility. On the other hand, nonprofits claim to provide a superior patient experience and are more cost-effective. In keeping with their charitable mission and community focus, nonprofit hospitals are often affiliated with a particular religious denomination. For-profit hospitals are either owned by investors or shareholders of a publicly-traded company. For-profit healthcare entities are more likely to prioritize treatments that generate higher profits, such as open-heart surgeries.

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TMDEOhio is a non-profit organization that utilizes a trauma informed care approach to improve the physical, mental, social and financial health and wellness of women and young girls. Through programs, resources and services TMDEOhio educates women about social determinants of health, reduces life-threatening toxins and increases quality-of-life

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One term that people discuss is corporate social responsibility, especially because many people are starting to recognize that companies can deeply influence our society in many different ways. During this learning journey, we will be discussing companies whose social responsibility actions I admire the most. Furthermore, we will also be discussing which companies I do not trust. Last but not least, I will be stating whether I would like to work in the corporate social responsibility

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Tuckman (1998) believes that four factors lead non-profit businesses to a successful move toward commercialisation: the need for additional revenue thanks to the commercial activity, the compatibility between the organization’s mission and the commercial activity as the organization should offer suitable products for sale in the market and lastly consumers should be willing to buy those products. If not, Tuckman argues that sustained for-profit activity will not result. Indeed, the absence of a product or service made social enterprise activity practically impossible to establish. So, there is the need to identify a market to serve.

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For-profit corporations must balance their needs with the needs of their customers. Corporations have a duty to make a profit so that their owners and shareholders can enjoy a return on their investment. If a corporation fails to make a profit they will eventually cease to exist as people will not invest in an organization that is not profitable. Corporations that solely focus on profit and neglect the needs of their customers will suffer the same fate as the corporation who does not profit at all. A corporation that completely ignores their customers needs will lose those ignored customers.

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The actions of an enterprise and, therefore, management, have social consequences that affect several groups, often referred to as the stakeholders. No organization would ever admit to being socially irresponsible, and many organizations claim to act responsibly on social issues. British

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Particularly in recent years, not-for-profit sector is sweating heavily to develop a ‘corporate culture’. Although, this seems fine at first, however, one important aspect must not be overlooked; not-for-profit is a donation driven sector, it has no money of its own, building and maintaining a corporate look means an overhead to an already existing financial burden. Typically, welfare work with a humble start becomes complex as an organization grows. While the fundamental values may persist at the topmost level, they tend to diminish as one goes further from the core.

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Davis (as cited by Khalidah, Zulkufly, & Lau, 2014) defined Corporate Social Responsibility (CSR) as “… the firm’s consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm. It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which stats that a firm can never exist In a vacuum (Khalidah et.

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Furthermore, economic responsibilities also is a part of corporate social responsibility, the objective which is “to produce goods and services that society wants and to sell them at fair price- prices that socity thinks represent the truw value of the goods and services delivered and that provide business with profits sufficient to ensure its survival and growth and to reward its investors” (Carroll and Buchholtz,

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SOCIAL RESPONSIBILITY As we defined above that social responsibility is to protect and enhance well-being of living things. Every organization is socially responsible to protect the environment and they can do there much which is legally required for the organizations. The very first social responsibility of every business is that to earn enough profit to meet his expenses. If the firm cannot earn profit no social need and social responsibility can be met by the firm the firm fails.

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Social responsibility of business has been a debated topic for years. The ideas of different businessmen have had effects on the direction of business in this period. This essay analyses two texts, which have Milton Friedman’s arguments about social responsibility of business and John Friedman’s ideas about Milton Friedman’s, by comparison and contrast method and includes this writer’s evaluation. Milton Friedman’s text is about the effects of the name of social responsibility on a private property system including executives, stockholders, employees and customers. He gives us some assumptions and examples of their potential results and impacts on corporations to express his ideas clearly.

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Here you look on the difference between benefits and harms for the society and if the benefits are greater than the decision or an action is considered as ethical, if lower – unethical. Here it is important to identify the stakeholders and an effects on them from actions or decisions of a company. “You can think of a stakeholder as a person or organization that can affect or be affected by your organization. Stakeholders can come from inside or outside of the organization. Examples of stakeholders of a business include customers, employees, stockholders, suppliers, non-profit community organizations, government, and the local community among many others.”

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