As well as making money, businesses have social responsibilities. Do you agree or disagree?

Profitability has been long considered as a crucial factor that channelize

business

success.

However

, the increasing awareness and rapidly changing markets have made the companies realize that

besides

earning money they have to undertake an active and constructive responsibility towards the sustainable development of society. I vehemently espouse that

in addition

to profits, corporations should expend considerable efforts for the betterment of society at large.

To begin

with, it is a commonly

acceptable

Suggestion

accepted

notion that

money-making

the act of making money (and accumulating wealth)

moneymaking

approaches are essential for ensuring financial viability and success. Without the provision of adequate financial resources, the corporation will not be in a position to meet their day-to-day expenses,

such

as payment of wages, rents etc.

This

in turn will create a negative resource loss spiral by hampering their prospects to undertake substantial strategic activities,

such

as investment of funds for the expansion and growth.

For instance

: In 2012, Kingfisher Airlines were forced to curtail their operations following a massive cash crunch and non-payment of dues to various authorities, which in turn

further

escalates into revocation of

company licence

Suggestion

the company licence

to operate in domestic and international markets.

However

, apart from making money, companies

also

need to bolster their social responsibilities. In the wake of rapid climatic changes,

business

units should spend a portion of their income for ensuring environmental sustainability by encouraging practices like recycling of industrial waste and

planation

an estate where cash crops are grown on a large scale (especially in tropical areas)

plantation

of

tress

a tall perennial woody plant having a main trunk and branches forming a distinct elevated crown; includes both gymnosperms and angiosperms

trees

in the vicinity of factory premises to counter the detrimental effects of their activities on the environment.

Moreover

, they can

also

disburse their funds to sponsor variable charitable institution in their efforts to help the underprivileged members of the society.

For example

: In 2014, the Indian government has amended its Company Act by making it mandatory for

business

units with certain turnover and income to spend minimum of 2 % of their past three years average net profits on the welfare activities like poverty, women empowerment, health, gender equality etc. To recapitulate, while prosperous and successful

business

are required

Suggestion

is required

for boosting the financial strength of a company,

however

the value of partaking in social welfare should not be ignored.