The Dual Purpose of Corporations: Profit and Social Responsibility

Abstract

The subject of the fundamental goal of corporations is raised in Alex Edmans' film "The Social Responsibility of Business" to gain profit for shareholders or to serve a larger social purpose encompassing consumers, employees, and the environment. Edmans concludes that firms, in addition to creating money for shareholders, should try to serve a societal purpose. He contends that firms may contribute to long-term success and sustainability by concentrating on providing value for all stakeholders, benefiting not only shareholders but also employees, consumers, and the environment. From the view point of human resource management, the approach to organizational social responsibility should be consistent with Edmans' viewpoint. Employees are a crucial component of a company's success and sustainability, and HRM should understand this. When companies focus their workers' well-being, growth, and job happiness, they generally experience increased productivity, loyalty, and creativity. Incorporating social responsibility into human resource management entails establishing a good work environment, providing competitive remuneration and benefits, fostering work-life balance, and giving chances for skill development and career advancement. Patagonia is a real-world illustration of a business practicing social responsibility. Outdoor apparel and equipment manufacturer Patagonia is well known for its dedication to social and environmental problems. The business encourages consumers to repair and recycle their purchases and provides a portion of its income to environmental causes. It also actively supports sustainable supply chain methods. The strategy employed by Patagonia is consistent with Edmans' viewpoint since it shows how a firm may give priority to its social responsibility while still succeeding commercially. Companies may contribute to a more sustainable, ethical, and inclusive business environment by implementing a holistic approach to social responsibility that includes all stakeholders and incorporates it into HRM processes. As a result, staff engagement, customer loyalty, and overall business performance may improve. References Cascio, W. F., &...