Agree/Disagree Band: 8.5 Q: Companies are responsible onl | Cambridge books

Agree/Disagree

Band: 8.5

Q: Companies are responsible only for making money for their investors. Therefore, they should not be held accountable for the environmental and social costs of their business activity to society as a whole. Businesses should do no more than concentrate on making profit.
To what extent do you agree or disagree with this opinion?

Answer:
From a strictly capitalist point of view, companies exist simply to make profits and there are businesses that focus on this aim regardless of social or environmental consequences. Such an approach to business is not only irresponsible but may be self-defeating, in that firms who continuously ignore such factors may even be harming their profits.

First of all, from a business point of view, public awareness of green issues is at an all-time high, and firms that are seen as working hard to restrict pollution and encourage recycling are often looked on more favourably by consumers. Therefore, being environmentally friendly is not only better for the planet, it could also give companies an advantage over competitors. In addition, in many countries there are government incentives for companies to lessen their environmental impact. For example, the introduction of carbon credits means that firms can protect the environment and receive tax credits in return, so clearly there are also economic rewards to being environmentally friendly.

Equally, businesses who disregard public opinion or engage in socially irresponsible practices do so at great risk. They may find themselves subject to strikes and boycotts of their products, and firms who continuously provoke negative social reactions may eventually be barred from trading within certain markets. On the other hand, those businesses who work hard to maintain the public trust are more likely to experience increased sales, leading to more revenue.

In summary, businesses should not be blinded by profits. They need to remember that they are subject to the will of the public on issues such as the environment and their social stance. If they want to succeed, these factors should not be ignored and, properly managed, could even help boost revenues.

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