Big businesses can resolve to carry out their operations ethically and hence will not be bad business. Some of the businesses which are well-established and run large volumes of transactions are beneficial to its various stakeholders and the society at large. There are many benefits accrued from operating of big businesses in comparison to its disadvantages. These big companies create more job opportunities for the people in the community in which it is established. It can employ more workers since it has a lot of activities and functionalities that require a greater human force. Through job creation, the living standards of the community around and those who are employed by these businesses are enhanced (Baker, 2012). The people leaving around the established business also get a source of lively hood without necessarily being directly employed.
When a big business practices good corporate governance, it can inherit huge advantages and be of better value to all its stakeholders. Large firms enjoy better returns from their businesses since they carry out more repeat transactions resulting in more sales and profits. These huge returns imply that there is a handsome compensation to all those employed by the organization. In case it is a business that attracts funds in the form of share capital, the shareholders will earn a higher return on their investments. The higher the profits generated, the higher the returns accrued by all other types of investments in the firm. Moreover, these businesses with huge profits generate more revenue to the government in the form of taxes. When a large corporation complies with the rules and laws governing its operations, for instance, not evading to pay taxes by remitting massive amounts of money to the government (Baker, 2012).
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Big enterprises also undertake various projects in the surrounding community which are beneficial to those residing in the area. These activities are a form of corporate social responsibility (Josephson, 2015). Most of the large businesses set up these projects in a bid to give back to the community that gives them huge returns. For example, the organization can decide to establish a health care facility or organize various charity activities to help the needy in that society. This move will ultimately be an advantage to the community as a whole since it will avail more services closer to the people. Most small businesses do not have additional funds that they can redirect into this kind of projects which are beneficial to the society. These organizations hence provide more value by improving the lifestyle and living conditions of others. Therefore, from an ethical perspective, big businesses do not have to be bad businesses.
However, some of the big enterprises focus more on wealth creation rather than the welfare of its stakeholders and the surrounding community. Being profit oriented in nature, they may undertake various activities such as the production of goods which may be harmful to its consumers as long as they reap benefits. For instance, since it is producing a particular product on a great scale, to ensure that they maximize the benefits, the large company can opt to incorporate poor quality raw materials which lower production costs in terms of raw materials purchase. A company can also exploit its consumers by conducting unethical marketing and provide false information regarding the content and quality of the product to achieve maximum sales (Hastley, 2013). This profit-driven policy which guides some of the large companies render them bad businesses.
The big organizations sometimes focus more on its operations and financial needs rather than the welfare of its workers and the local community needs. A small business is mindful of its actions and how it treats its employees since it strives at growing and requires to have a proper relationship with its stakeholders. The less caring attitude of the big businesses since most of them are contented with their position in the business life cycle renders them bad companies. These unethical practices as discussed in the last two paragraphs are not the norm in all big businesses. These unethical practices occur in isolated incidences within the business community; therefore, big businesses are not always bad businesses.
References
Baker, D. (2012, August 16). The Advantages of Being a Larger Firm. howdesign.com . Retrieved from http://www.howdesign.com/design-firm/design-firm-owners/large-firm-advantage/
Bigger is better: Large companies good for the economy, study finds. (2012, August 29). euractiv . Retrieved from https://www.euractiv.com/section/trade-society/news/bigger-is-better-large-companies-good-for-the-economy-study-finds/
Hastley, R. (2013, November 14). 10 Most Unethical Business Practices in Big Business. Business Pundit . Retrieved from http://www.businesspundit.com/10-most-unethical-business-practices/
Josephson, M. (2015). 12 Ethical Principles for Business Executives. josephson Institute, Exemplary Leadership & business ethics . Retrieved from http://josephsononbusinessethics.com/2010/12/12-ethical-principles-for-business-executives/
