Societal and Environmental Roles of Corporations
Globally, corporations play vitals social and environments roles to ensure a sustainable business world. Business corporations have a social responsibility in addressing environmental issues within their production and consumption patterns. Besides, these corporations are responsible for developing and implementing sustainable development linked to health and environmental protection, voluntary initiatives, safer technologies of waste management, water, and energy use among others. Sustainable developments within corporations aim at solving social and environmental problems to provide a safe environment for its stakeholders. The implementation of these ideologies is done through the formulation of ethical policies which the corporations are bound. Unquestionably, corporations have a moral responsibility to stakeholders other than shareholders.
According to business literature, corporations should put not only the interests of their shareholders first but also those of its stakeholders. In other words, they should consider the ethics of their creditors, employees, suppliers, and the society which they depend. Corporations should ensure that their employees work in a safe environment which is fully accommodative. Brooks and Dunn (2014) affirm that it is the moral responsibility of any corporation to treat their employees fairly and with the utmost respect for the maximum production of the corporation. Moreover, provision of communication channels in which employees can air their grievances is essential in a corporation (Trevino & Nelson, 2016). Generally, the corporations ought to motivate their employees to ensure perfect competition in the market.
In the same context, corporations have a moral responsibility to deliver to their customers. Although some corporations have violated the rights of the consumers for their interests, many corporations are geared towards ethical and financial breakthrough towards their customers. Customers require quality goods and services which meet certain quality standards. Additionally, corporations are entitled to offer fair prices to their products and services. By doing so, corporations boost customer relationships and loyalty; thus, more profits (Brooks & Dunn, 2014). On the other hand, corporations have to abide by the set of laws protecting the community. These business entities should avoid public nuisance and protect the environment where they are situated. Also, they can volunteer charity activities such as donations and sponsorships as a way of giving back to the community.
In the recent past, numerous issues of economic injustice have prevailed the business sector. They have been facilitated by the intense competition in the market; therefore, resulting in unethical activities. However, business entities should compete fairly objecting to increasing profits and improving social welfare (Brooks & Dunn, 2014). Some business institutions unlawfully drive out their competitors through deception and coercion to enjoy the power of monopoly. Additionally, according to Trevino and Nelson (2016), violation of ethics is also associated with the setting of prices which create barriers for entry of new competitors in the industry. All in all, business corporations should ensure that their competing accounts conform to business ethics as well as economic justice.
In conclusion, all corporations should execute correctly their social and moral responsibilities to align themselves with the rights of both the stakeholders and shareholders. Moreover, all government legislation should highlight the ethical loopholes in corporate law and act accordingly to avoid exploitation of corporate stakeholders. The corporations must comply with the societal and cultural ethics of the community they serve to prevent resistance from the community. Stakeholders play a crucial role in the growth and development of all corporations; therefore, it is the duty of the corporations to protect them. Besides, corporations should safeguard the environment from pollution to avoid endangering their stakeholders.