"The Only Responsibility Of Corporate Executives, Provided They Stay Within The Law, Is To Make As Much Money As Possible For Their Companies."
Submitted by freefortermpapers on 06/24/2008 03:00 PM
- Category: Religion
- Words: 508
- Pages: 3
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"The Only Responsibility Of Corporate Executives, Provided They Stay Within The Law, Is To Make As Much Money As Possible For Their Companies."
Should profit maximization be the sole obligation of enterprisers, as the speaker acclaims? The suggestion seems logical on the basis that the chief aim of any executive, by operating a company, is to gain as much as money by all means allowed by the law. Nevertheless, with a second though, the speaker has ingored an important fact that there exist many social responsibilies, such as offering finacial support to charities or other public good, and exerting positive influences on business environment, even the whole society.
Unquestionably, the primary duty of a corporate leader is to make as much money as possible for the company. Being the leader of a company, one must be accountable for the board of directors as well as his employee. He has be to eligible to earn enough money, under given condition, to assure the returning of the directors¡¯ investment and the basic salary need of his people. Morever, as respect to the process of managing a company, profits should be made to keep an abundant cash flow to adopt innovation in technology or management to keep a stable development in a long run. Without being profitable, a company is destined to fail. Should his operation of the company be fruitless, and he would probably run the risk of being substituted by another more qualified one, let alone to fullfill other social duties imposed.
The more one¡¯s fortune is, the more social responsibilities should he undertake. That is one of the criterions for a sound society. Nowadays, more and more social causes have been started and maintained by some charity institutions whose financial sources are mainly from the donation of those successful enterprisers. One of the famous businessmen, Li Jiacheng, being regarded as the most economical person among his peers by the Fortune, has contributed more than 5 billion Hong Kong dallors in all to a variety of charities, and therefore, gained great respects from almost all circles of life in...
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