Are corporations becoming more socially responsible?
Ed Freeman thinks so in his lecture.
Is he persuasive? What does it prove to cite scattered examples?
Corporations are becoming more socially responsible. We are in an era in which each individual is starting to become more socially responsible. People are recognizing and moving towards change no matter what it is. As stakeholders, companies have to listen to the direction in which we’re going. Like Ed Freedman mentioned on one of the principles on the new business is getting the interests moving in one direction, one common goal. Later the profit will flow. Social responsibility is even recognized on the federal level, an example is Regulation B-Community Reinvestment Act in which all banks have to adhere by. In short, part of the regulation says that banks have to be more involve in the communities in which it’s located. That’s why you may see banks donating and volunteering towards different causes. In order to sell a product or service you have to know your audience “social responsibility”. Ed Freeman is not persuasive but i agree with the concept.
In my opinion corporations are more social responsibility. Corporations are more mindful when it comes to the community they’re located in by supporting the efforts it needs to survive. They have more environmental awareness and more sensitivity to the needs of the every day people. As in the concern of energy saving, recycling, and safety. In today’s society it’s not uncommon to hear about a company supporting world hunger or healthy living. Many companies have even gone as far as to include benefits that promote healthy living. With the fast spread of social media, in many ways companies will feed off of each other. I would have to agree with Ed Freeman as in it’s not the size of the company nor the amount of revenue gained that really matters, because every company should what to participate in corporate social responsibility, which in the long run will enhance the busines.
Ed Freeman’s 5 principals for the new story of business started off with stating that if you get the purpose of a business right, money and profit will follow which I believe is true. Corporations that start off with the right mindset continue to profit in the long run. With this statement, Ed Freeman was getting me convinced that the possibility of coporations being socially responsible was something that is growing not only in the U.S but globally. But on the other hand I started to think that most corporations do things for their own cost benefit not for the better of society and also they try to gain more consumers by changing these things. It’s unfortunate to say but corporations are always looking on how to cut expenses and make more profit. Society’s welfare is not particuraly on the top of their list. In Freeman’s argument he cited many corporations, domestic and global, stating that they were making changes for society. Although his citations did support his argument, I personally was not convinced.