Reflection paper on Modern Corporations and Society articles

Introduction

Across the centuries, a shared understanding of the corporate world has been that business is done for the individual welfares of the shareholders of respective companies, and not the communities within which the business operations are carried out (Stout, 2012). The broader mindset by the responsible stakeholders as represented in the eight articles analyzed herein has led to the concentration of power and the decentralization of business activities. Furthermore, the strategies for the future are discussed as well as the future topics of research outlined; about business versus the society, commerce versus the environment, as well as government policies versus the expected profit margins (Andre, 2012). The sources and hence the articles used in this study are very relevant and recent enough to give current information. The diverse views of the authors, comparing and contrasting varied perceptions and expected outcomes based on historical and scholarly proven content is especially indispensable (Grant & Pollock, 2011). Therefore, the articles do not only discuss the role of Modern Corporation in the society but also the controversial issues about capitalism, government policies, and the socio-political environments.

How the Articles Set the Hook

The question of capitalism and its effects is widely and intensely discussed (Crane & Spence, 2014). The role of capitalism has been viewed as a disadvantageous occurrence in business, whereby the community loses in environmental, political, economic, and social matters, at the expense of the thriving the business entities. However, despite the active efforts by the corporate world to better the social systems as argued in the article The Benefit Corporation and Corporate Social Responsibility, the reputation of business has been degraded to lower levels already (Hiller, 2013). Consequently, the political systems have always subjected business to circumstances that polarize the legitimacy and the gains of business by upholding and implementing unfavorable policies. Nevertheless, bccording to the arguments by Bill Gates in one of the interviews conducted about the role of companies and inventions in the society, it is believed that business organizations are the primary causes of the continued compromise (World Economic Forum, 2014). This is because corporate segments do not appreciate change and as well never accommodate the changes immediately. Old perceptions of governance and profit making are still embraced in business when the societies are facing economic distress, natural resources are getting depleted, technology has taken center stage of the twenty-first-century operations, and the human wants have escalated on the scale of lack of satisfaction (Friedman, 1970). Consequently, the government policies are established to salvage the social problems at the expense of the business world.

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How the Readings Support, Build on and Contradict one Another

The question of the corporation and modern societies has attracted more attention in the recent past, as scholarly evidence and business related research unveils a lot of related social and environmental issues pertinent to the business world. Most scholars argue that the business community and commercial entities have been subjected to adverse circumstances by the society as a whole. First is because the rule of law is not up to date in most places across the world. Thus the business operates in corrupt environment remaining vulnerable to many corporate injustices (Crane & Spence, 2014). Furthermore, in the last one decade, the business entities in western countries especially the US, have been and are still facing pressure from the society to take up responsibilities, some of which are costly and beyond their managerial capacity. However, the corporate sector can engage the needs of the poor and needy communities while generating profits (Andre, 2012). The same argument is seconded by Bill Gates in one of his Davos meetings, where he argues that the world is getting better, but at a slow rate, hence it is the responsibility of the corporate sector to come in and ensure equal distribution of wealth, solved social, environmental, and economic issues (World Economic Forum, 2014). Furthermore, the subject of globalization has come in handy, following the new inventions and scientific discoveries, hence the need for the collaboration and coordination among business partners for a foreseeable and well-strategized business environment.

While it seemed unclear in the past about the role of the corporate sector in society, and even across the global communities, currently, it is almost legitimized that the business entities should honor the Corporate Social Responsibility. The current information is being engaged as the extant hypothesis to ensure the moral legitimacy of commerce. Therefore, competence, reliability, responsibility, and credibility are critical ingredients necessary in the process to ensure the accomplishment of the CSR n (Friedman, 1970). More than half of the authors of the many article referenced in this paper are of the general opinion a bipartisan and multifaceted approach is needed to outline the roles of the corporate entities, the legitimacy and legal implications of the same, as well as the benefits to the particular business entities in the guest to fulfilling the CSR. Nevertheless, the idea that the companies are being overburdened is a controversial issue, whose origin is the corporate world. There is a need for appreciating change and diversity based on the needs of the communities the businesses operate. The deteriorating economic capabilities, increased poverty, depleted resources, increased environmental pollution, and social degradation are challenges to a great extent can be associated with the rigid and capitalist nature of the business world. Therefore, there is need to strike a common ground for all parties to remain comfortable, as any rigidity will mean political institutions will manipulate the private sector to solve social problems, a big blow to commerce. Therefore, it is essential to strategies mechanisms that allow CSR while profiting the businesses as well (Crane & Spence, 2014).

The effects of globalization on business are substantially significant. The last two decades have been characterized by several and intensive technological discoveries in all sectors of the economy, elements which have resulted to both negative and positive contributions and hence influence to the corporate world (Porter & Kramer, 2011). As such, the problems facing the business community have mostly increased on fair terms, as the commercial entities are under pressure to meeting their responsibilities by giving back to the society and staying responsible in matters like pollution, profit margins, and capitalism. Although many partners complain that business is strained by law and social demands, the 2008 Davos meeting attended by Bill Gates argued that the companies need to be responsible for solving the social challenges while making progress in commercial operations (Werhane, 2012). Nevertheless, the question of capitalism remains controversial, as businesses amass vast wealth at the expensive of poor communities, depleted natural resources, environmental pollution, and unaccountability (Porter & Kramer, 2011). However, businesses counter the argument by staging a new platform that most companies operate in corrupt environments which negatively impacts on the desirable and convenient functioning of the corporate entities.

Summary

The authors of the articles analyzed above are of a shared tone that there is a need for the exchange of information and values among different stakeholders to necessitate the desired coherence in the societal, environmental, and corporate sectors by strategizing legitimate options. Nevertheless, the challenges about unaccountability, facilitating Corporate Social Responsibility, lack of business compliance, lack of the legal and moral comprehension of the roles of the business sector, failed social systems; embracing change, environmental pollution, and extreme capitalism has been the opposing forces for striking a common ground across decades. Therefore, there is need to engage fundamental mechanisms like Creating Shared Value to build trust again in business, despite the present crisis, hence the statement, “The capitalist system is under siege,” (Andre, 2012). Such a cumulative approach can help solve critical issues and concerns in the social and business segments while increasing the profitability of the involved parties. The end goal will be to reshape the business world, lead to economic transformations, increased productivity, and a congruent capitalist world about the values of the society.

Conclusion

The business world and the society have been evident in a compromised and porous relationship for decades. The corporate world is a capitalist entity, whose benefits from the society do not honor the CSR. The irresponsibility has resulted in poverty, economic recessions, environmental pollution, failed social systems, and improved benefits for the shareholders. As a result, the political systems have created legal statutes for the society, and at the expense of the communities. Nevertheless, businesses as well operate in corrupt environments, where there is no rule of law, compromising their integrity and profitability. Therefore, there is need to come up with strategies like embracing change, doing research to counter the challenges and quell the controversy by striking mutualism regarding business, capitalism, society, and the law.

 

References

Andre, R. (2012). Assessing the Accountability of the Benefit Corporation : Will This New Gray Sector Organization Enhance Corporate Social Responsibility ?, 133–150. https://doi.org/10.1007/s10551-012-1254-1

Crane, A., & Spence, L. J. (2014). Contesting the Value of “ Creating Shared Value ,” 56(2), 130–154.

Friedman, M. (1970). The Social Responsibility of Business is to Increase its Profits. The New York Times Comany, 122–124.

Grant, A. M., & Pollock, T. G. (2011). Part 3 : Writing Introduction and Literature Review Introduction : setting the hook The body of an Introduction ( some tips by Claerbout 1995 ) Rules for a good Introduction, 54, 1–5. Retrieved from http://kttm.hoasen.edu.vn/sites/default/files/2015/07/user22/do_ba_khang_writing_up_your_paper_part_3.pdf

Hiller, J. S. (2013). The Benefit Corporation and Corporate Social Responsibility, (November 2012), 287–301. https://doi.org/10.1007/s10551-012-1580-3

Porter, M., & Kramer, M. R. (2011). Creating Shared Value. Harvard Business Review, (February), 1–17. https://doi.org/10.1108/09600039410055963

Stout, L. A. (2012). New Thinking on “ Shareholder Primacy ” New Thinking on “ Shareholder Primacy ,” 2(2). https://doi.org/10.1515/2152-2820.1037

Werhane, P. H. (2012). Globalization and Its Challenges for Business and Business Ethics in the Twenty-first Century, 383–406.

World Economic Forum. (2014). Bill Gates : “ A New Approach to Capitalism in the 21st Century ,” 1–10.