Hi All,
“A company’s first obligation is to be profitable. Unprofitable enterprises can’t afford to be
socially responsible.” Well the most obvious advantage of a profitable company is the possibility
of making money. Revenue generated above and beyond expenses is for the owner to do with
what he will. The more successful the company, the greater the financial reward. Besides the
financial rewards, the owners of the profitable company are their own bosses.
As I reread this quote I remember something from the chapter which states something along
the lines of, the choices in being socially liable for a business would be determined by the
choices that produces the greatest good for the greatest number (Daft, 2014). Therefore, if the
business goes under the owner is completely liable.
With that being said I agree with the first sentence, but the second sentence tripped me up a
little simply because there are many unprofitable businesses that make it through, especially
because most of their finances come through donations. So if they fall short of expectations
their not fully liable, which is a perk.
Sincerely,
Stephany
Daft, R. L. (2014). Management 11th Edition. South Western-Cengage Learning.
That statement "A company’s first obligation is to be profitable. Unprofitable enterprises can’t afford to
be socially responsible." I do see the point in this statement for the reason is that a company’s first
obligation should be how to be a successful organization and profit is the most important part of this.
For a organization do to this first this has to come from within the organization. First the organization
needs to have good managers with good ethical practices. Managers need to be ethical responsible
which includes having good moral values to know what is right and what is wrong for the organization.
The organization needs to be successful to have everyone to follow the ethical standards. It is the
managers responsibility to make sure that this is being done and to let unethical individuals go if the
person is not following the code of conduct within the organization. Most managers is greatly influence
by the superiors, colleagues and other significant people that are in the industry. The code of ethics are
the principle based which include the responsibilities, quality of products and treatment of employees.
The policy based includes the produces that affect the marketing practices, conflicts of interest,
observance of laws, proprietary information. political gifts and equal opportunities. Once the
organization has develop a good working environment and is profitable than other areas can be looked
into for expanding an organization. This is where a organization can be more involved in the social area
of making money and to do more collaboration with other organizations and to look into global
marketing for the organization but the first areas to focus on is the profit because with out making profit
the organization cannot expand. The first part is focusing on the internal environment than once the
organization is profitable and making good revenue than more focus can be looked into in the external
environment to create more revenue. This is where being socially responsibly would fit it. It is
important to be socially responsible once the organization has made a good start for themselves and can
look into all areas that will benefit the company to stay profitable in the future.
Daft, R. L. (2014). Management 11th Edition. Mason OH: Western-Cengage Learning.
