It is fundamental for every business entity to define the groups it works to benefit. With two seemingly different sides, the shares holders and the public, the business is often mandated to pick which group to serve as it is essential for the definition of the company’s mission and overall purpose. Although the shareholders own by a greater extent the logistics needed to run a business, including funds and the management experience required, the other entities; the workers and the public at large, should be the focus of every entity, for they play key roles in the business (for example production and revenue from sales) and without their effort and cooperation the business would not be able to realize its fundamental goals.
The corporations should aim at upholding the general public’s interest as this presents a chance for overall societal growth. Although the contemporary and sole purpose of a company is to make profits for its shareholders, to focus on this as the only aim would be to rob the community of its service. The corporate’s purpose is to make profits so that it can use it to better the conditions of its contributors as this justifies the purpose of the business (Handy, 2002). This means that while the business will be meeting its ethical obligations to shareholders, concentrating solely on this will make them miss the essential requirement of attaining a higher purpose and social fulfillment.
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Business entities should not wait to be obliged by the legislation to deliberate on its role of serving the public (Should Corporations Serve Shareholders or Society?: The Origins of The Debate, 2011), instead, they should focus on uttermost and deliberate service to other shareholders. The group the business serves ought to be the public, the workers, the customers, and the society as they deserve of the profits made by the corporation. Their toil and purchases of goods and services offered are what define the company’s success.
References
Handy, C. (2002). What’s a Business For? Harvard Business Review . Retrieved from https://hbr.org/2002/12/whats-a-business-for
Should Corporations Serve Shareholders or Society?: The Origins of The Debate. (2011). Corporations and Health . Retrieved from http://www.corporationsandhealth.org/2011/04/06/should-corporations-serve-shareholders-or-society-the-origins-of-the-debate/
