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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: 703
TIME: 00:54:18
DATE: 2009-8-17 0:47:48
Wealth gaps and social inequality has always existed between different social hierarchies and various regions ever since the dawn of human civilization no matter how prosperous the society became. ‘Creating a better world’ has also adopted by benevolent individuals and institutions as their motifs and life goals. Such trend also affected the business world. When competition between corporate is getting even more sophisticated, the tasks of executives varied. Maximizing the profit, the ultimate engine keeping the world economic robust, stays important while other roles such as undertaker of social responsibility has been placed more emphasize than ever before. However, it is questionable what should be placed first on the agenda of company executives, while arguing taking more social responsibilities and involving in philanthropic works are with vital importance and should be included in their job description, utilizing strategies to ensure a more successful fiscal report and increasing the bonus of themselves as well as their employees without deception and fraud should remain not the sole yet the most important task of company executives.
Maximizing the a company's profit is , and should be, the first, yet not the sole, priority of business leaders, as this is the pursuit that drives the global economic and society forward and is a healthy expression of our desire of wealth, which is one of the intrinsic values of human beings, especially in corporate world. From a macro perspective, the search of more advanced technology, which moved the scientific evolution forward and fed numerous mechanical and technological scientists, and the development of
research on organizational behavior, which transformed social expert's knowledge into financial values, are mostly, if not solely, driven by the need of maximizing revenues. From invention of steam engines, which led to the industrial revolution, to the introduction of internet, which paved way for this information era, numerous social transformations were stem from corporate society’s search of higher efficiency and productivity. From an individual’s angle, a person’s productivity, the particle structure the innovation of our civilization, is largely influenced by their motivation and financial reward. The hunger for money of institutions and individuals, if regulated well by the law, generates mostly positive result and impact to the human civilization. Thus it is justifiable to argue that the pursuit of higher profit within the legal regime is the most important task of corporate executives and act as a motivation kept the society advancing.
Meanwhile, social responsibility should be involved in daily work of decision makers and giving back to the world and people should be on their agendas. Corporate, no matter they acknowledge this or not, are a major beneficiary of social development and government policy. Giving back to the society once the companies ensured business and growth is also the phenomenon prevailing the globe right now. NGOs around the world are mostly supported by wealthy companies and their foundations, and it is an efficient system to have corporate, who profess in generating revenues, provide the financial support while NGOs, who focus on allocating resources available and creating an effective helping system, to work together and develop the society as well as rule out inequality and poverty. Thus charity works could never been denied as an obligation of senior executives.
However, the prerequisite of fulfilling those humanitarian roles is ensured fiscal report and tax payment, which is based on the revenue of a company. The public and mainstream media should not attack corporate for prioritizing financial advancement as it would not be possible for them to help others before securing their own bank balances. This is especially true under the current economic downturn, when the companies are suffering in the financial winter and vastly cut down marketing costs. Using reasonable judgment, you will comprehend that it would be difficult for companies to advocate human rights and fight against poverty when they are on the brink of bankruptcy. They also shall not be attacked by media and advocates for being timid during financial downturns and focusing on their own safety. Under harsh circumstances, even if people look like they are still helping other members of the society,
full devotion is hardly guaranteed. Also, evidence shows that the prosperity of charity works are strictly tied to economic performance of the financial world, a case in the point is after almost 18 months of stagnation, the donation to NGOs around the globe only revived after the previous astonishing report of record revenue from Goldman Sachs and JP Morgan. Thus only when the thirst of money is drenched, there can be extra resources allocate to charity.
In conclusion, ensuring a flashy facade and healthy financial report within the regulatory requirement is, and should be, the task with highest priority for business leaders and other shall not attack them for prioritizing those necessities. While corporate should be one of the most active
leaders and supporters of philanthropic missions and their focus should not be solely on economic perspective, such benevolence would only be granted after an exciting shareholder report is presented. |
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