Discuss and debate the role of global businesses in your home and foreign countries. Is the sole
purpose of a business to provide a return for their stockholders (“the business of business is
business”) or do businesses have a broader social, environmental, and financial purpose (“doing
well by doing good”)?
The sole purpose is of a business is not to provide a return for their stockholders. All aspects of a
business are put into place to make a profit. However, they are many different concerns other
than just providing a return for the business’ stockholders. A business involves financial, social,
environmental aspects. “Companies … are being held increasingly accountable for their actions
as demand grows for higher standards of Corporate Social Responsibility.” In order to get more
and diverse stakeholders, a company must pay attention to their stakeholders’ interest in their
company. Many different social groups such as “shareholders, analysts, regulators, activists,
labor unions, employees, community organizations, and the news media” want to invest in the
company for their own reasons. The company must be able to provide success through profit and
also success through their stakeholder’s social, environmental, and financial purpose. “These
societal demands and consumer pressures have ultimately led to an economic paradigm shift…”
Corporate Social Responsibility has to exceed their break even to truly be a successful company.
Companies must be ethical in their decisions while still following business strategies that will
make them successful.
Kanovich, E. (2011, June 15). Stakeholder Theory, Ethics, Trust and the Return on Customer.
Retrieved January 30, 2018, from https://www.slideshare.net/ekanovich/stakeholder–
theory-ethics-and-the-return-on-customer-8319767