Answer to Question #307957 in History for Lirah

Question

There is conflict between the manager and one of the employees in the procurement department of the profit making company. They are in a disagreement whether company would make charitable donations. According to manager the company should not give money to charity because it does not generate any income, in contrast the employee has expressed that it is important that the company should give back to the community .

Analyze the scenario provided above .Advice your client on how to address the following matter. What insights could the ethical dimensions should be short and concise to be more practicable?

Answer 1

The core reason of anybody starting a business is to make profits. Therefore many organizations have viewed social responsibility as a necessary evil which in any case should be avoided.

In the above scenario, the manager is against social philanthropy while the employee is advocating for social ethics and responsibility. The manager's view is that giving back to society minimizes profit yield and therefore the company should embark on an activity that brings forth profits. However ,it should be noted that giving back to society is a very important marketing tool in today world. Business should learn to balance making profits and appeasing stakeholders, communities and customers at large fairly and responsibly failure to which may lead to public backlash which affects the business directly. Giving back to community gives the company a brand that everyone wishes to associate with which gives the company a competitive advantage over others