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TOPIC: ISSUE152 - "The only responsibility of corporate executives, provided they stay within the law, is to make as much money as possible for their companies."
WORDS: 547 TIME: 0:58:37 DATE: 2007-2-3
Outline:
1, 作为一个社会实体,公司要道德
2, 影响巨大的公司应当附上与其优势地位相配的责任
Should the corporate executives bear responsibilities beyond maximizing profit for their companies? On the arguments of liberalism economists, the answer is negative as they believe that any responsibility additional to maximize profit would distort incentive to corporate management, causing an efficiency lost to the firms and in turn the economy as a whole. For the more general arguments, corporate executives are expected to take more responsibility in addition to exert the corporate potential capability to make money within the law. To my understanding, economic efficiency is no the only one we should be concerned, even if the efficiency argument is true in a broader term. And corporate executives should bear their corresponding social responsibility.
To begin with, corporate executives have the responsibility to ensure that the corporation operates morally. As the life of individual, obeying law is not the merely constraint of behavior. Instead, obeying is only the very base line of behavior, which, once is violated, compulsive penalty will be applicable. In addition to the obeying law, one should have a moral sense to assist them in the judgment related to the less definitely defined situations, because there is a huge space of behavior and interaction with others is impossible to be regulated by the rigid and expensively enacted law. Modern corporations are active in the society, and for their involvement in large size of transactions, and number of workers employed, it is significant and influential across the society. Hence, such an entity should be regarded to be one necessarily within constraint of social moral norms. Because the lack of such constraint, the great number and influence of firms in various size would likely become a shield for unethical behaviors and eventually disturb normal social order. In that case, as the leaders of these entities, corporate executives are naturally in the position to guide the firms to actually acting morally.
In addition, many corporations nowadays have such huge sizes that their predominance in the society justifies them to bear more responsibility than a common corporate citizen. There is an old saying that, the more powerful one is, the more responsibility he/she has. The predominant position nowadays occupied by multinational firms in various industries implies an imparity with other companies in the same industries and even in the whole economy, no matter how justly and morally such giants earned their competitive ascendant. Their substantial influence to the domestic and global industries, local and sometimes state labor market, and the widening boundary of market and economy, make their activities increasing correlate to the macro environment. Thus, they are expected to prudently operate within the widely accepted framework of moral and exert their non-sustitutable ability to actively improve community welfare. For example, the pharmacy giants are expected provide timing help to the government when public emergency, such as unexpected virus attack in large scale by terrorist, takes place. Again, as the highly paid, and sometime critiqued as excessively paid management, corporate executives are more than any others to take on these kinds of responsibility.
In sum, corporate executive in the modern firms are experiencing the biggest power of resource ever, which parallels to the most influential time for corporate entities. Therefore, the executives should not narrow their responsibility in maximizing profit, and overriding to necessary social responsibility is not acceptable. |
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