Business is a force for good.

Whether business is for making society better place or for making profits for its shareholders is endless
debate. Although there is no clear winner, this discussion doesn’t have to produce mutually exclusive
results i.e. businesses can accomplish its ultimate goals (e.g. making profits) as suggested by Friedman
(1970) while taking its ethical consequences into consideration. From utilitarian perspective (Bentham,
1789), it might be possible to create “greatest happiness for greatest number”. According to online survey
conducted in 27 countries, more than half of participants told that economic conditions are in favour of
current powerful people and two-thirds of participants claimed that traditional politicians and parties don’t
give importance to their conditions (Euronews, 2019). This indicates that people feel alone and they don’t
have hope for their current or future well-being. However, in this essay, it will be discussed that companies
could be significant source for good. This can be achieved by engaging in corporate social responsibility,
complying with business ethics and applying sustainable business.

Corporate social responsibility and shared value creation are significant ways for businesses to be force for
good. CSR includes initiatives, which are developed based on idea that corporations have responsibilities
to environment and society and they should go beyond offering products to make profit (Carroll et al.,
2017). This is based on stakeholder approach (Freeman, 1984; Jones, 1995; Donaldson & Preston, 1995)
i.e. stakeholders are more than shareholders and it includes different actors such as employees and
customers. According to Carroll’s CSR pyramid, there is hierarchy in purposes of organizations (Carroll,
1991, 2004). It is suggested that profit comes first, after that, it will follow legal rules. Then it should go
beyond obeying legislation but it also has ethical and moral considerations. At the end of this pyramid, it
has duties toward society such as making donations to charity. CSR approach challenges Friedman
(1970)’s shareholder approach, which suggests that primary aim of business is to make profit and return
this to its shareholders. However, Carroll adopts more overarching approach to business responsibilities
and each of four responsibilities of organizations addresses needs of different stakeholders. Economic
responsibilities are first goal since financially sound and sustainable business is priority of continuation of
operations (Donaldson & Preston, 1995). However, purpose of business is not just satisfaction of customer
needs but effects of organizations go beyond exchange between buyer and seller. Effective stakeholder
management approach would help organizations to overcome these conflicts within organization (Freeman,
1984; Harrison & St. John, 1996).

Businesses are going beyond merely capitalism and creation of “shared value” is emphasised (Porter,
1980; Porter & Kramer, 2011; Camilleri, 2017). According to this view, economic value is generated in a
way that also brings value for society. By this way, business and society could come together and it can
enhance their relationship. Every citizen has responsibility toward its community. Organizations are
“citizens” of countries and citizenship comes with obligations (Carroll, 1998; Matten and Crane, 2005).
Thus, multinational corporations such as Google, Apple are citizens of world therefore they should follow
rules of world citizenship. Being socially and ethically responsible become an expectation of customers for
companies because companies have pressure from press, customers and even competitors to be good
“social citizen” along with making economic profits. Research indicates that 70% of customers want to
know that whether brands they shop advocate social and environmental problems and almost half of
customers check that if brands have CSR programs before they purchase from those brands (Business
Wire, 2019). Furthermore, Larry Fink, who is CEO of Black Rock, also pointed out public demand for
company’s taking responsibilities to contribute well-being of society (Vox, 2018). Consequently, they want
to purchase from brands which are responsible toward employees and planet. Most of corporations are
engaged in social and environmental problems. For instance, Aflac, Inc., which is insurance company,
contributed over $100 million for R&D process of childhood cancer (Atlanta, 2020). Moreover, General
Mills, which is food company, donated $220,000 to Children’s Defense Fund for funding its School
Breakfast Program (General Mills, 2013). Another example is Body Shop, which is founded based on
environmentally friendly practices and fair and ethical trade (Business Growth Hub, 2016). CSR activities
and creation of shared value are significant during global pandemic. Unfortunately, everybody doesn’t have
equal opportunities to fight against virus such as hand sanitizer or mask (WHO, 2020). Thus, it is important
for businesses to provide necessary tools with disadvantageous groups. Similarly, due to pandemic,
education became remote and there are students who cannot access to internet or computers (ReliefWeb,
2020). In this case, big corporations help students to reach required tools consequently existing inequality
in education might not be more severe. For instance, JBL donated headphones schools in need to bolster
remote education system (Bronx Times, 2020). Also, when there is shortage of masks, New Balance
started to produce masks (Forbes, 2020). Another example is L’Oréal USA which produced hand sanitizer
to donate health professionals (Cision PR Newswire, 2020) These indicate that companies could be good
for social well-being by engaging CSR activities, which will create shared value for all of stakeholders.

Another way businesses can be good for society is thorough following business ethical codes for its
customers and employees. Business ethics are about whether business operations and decisions are right
and fair based on social and ethical norms (Abdullah & Valentine, 2009; Carroll et al., 2017). Moral
management is complying with professional ethical codes and rules (Crane and Matten, 2007; Carroll,
1987). Thus, businesses can be force for good if they follow ethical rules within organization. For instance,
Merck & Co which is pharmaceutical company invested in R & D of drug for curing Third World disease
(Merck, 2021). Since there is no government or organization aid for treatment, company decided to supply
it for free. This shows that companies can adopt moral management practices and use their economic
power for good of world. Business can be good by following ethical codes and as a result, they have long-
lasting relationship with customers, which create competitive advantage.

In terms of ethical responsibilities, it will be analysed from both customer and employee perspectives. With
respect to customers, they have rights to safety, right to be informed, right to choose and right to be heard
(Holloway & Hancock, 1973). Right to safety involves products that can be harmful to customers such as
foods, drugs or automobiles. In this case, companies should provide safe products that will not be
dangerous to customer’s health. Businesses taking necessary measures for this would create good for
society. For instance, although Pret a Manger was warned about allergy cases by authorities, company
didn’t communicate this with its customers and didn’t take necessary actions (e.g. labelling products with
the warning of allergic reaction) as opposed to EU regulations (Telegraph, 2018). This reckless attitude
resulted in death of a consumer due to allergic reaction. Right to be informed is about marketing
communication tools of company, labelling, and warranty. In advertisings, companies should be careful in
statements and they shouldn’t give unrealistic hopes regarding products (Leiss et al., 1985) and they
should provide customers with accurate, clear and adequate information (Shaw & Barry, 1992). For
instance, if cosmetic company makes improbable statements in advertising about its products then
individuals using those products will be disappointed if they don’t see promised results. This can cause
both physical and psychological damages to customers. Businesses also shouldn’t conceal products
information intentionally (Shaw & Barry, 1992). With respect to right to be heard, it is about after-sale
service and customers should be able to communicate with customer services about their complaints or
problems regarding products.

Moral management theory of customers see consumers as equal exchange partner in market and duty of
companies is to meet customer demands by providing them with true information, and guarantee. Both in
terms of quality (e.g. performance, durability, satisfaction of customer expectations; Carroll et al., 2017) and
safety (i.e. being free from harm; Carroll et al., 2017), businesses should follow ethical standards and by
this way they can be force for good of society. According to contractual theory, there is agreement between
companies and customers and businesses are responsible with informing customers regarding product by
avoiding any untrue information (Carroll et al., 2017). Similarly, dual care theory suggests that there is
asymmetric information between customers and businesses therefore businesses should take necessary
measure to prevent customer injury (Velasquez, 2002). At the extreme of those theories, social cost theory
denotes that businesses should take responsibility if there are unexpected consequences of products
(Velasquez, 2002). Therefore, it is crucial for companies to inform its customers. However, companies
might fail to provide services to its customers and in this case, how company handled this failure became
important. For example, Maple Leaf Foods had been aware of listeriosis contamination at one of its meat
processing facility, which resulted in deaths of people (Financial Times, 2013). However, company handled
situation professionally by recalling products for testing and apologizing to customers and informing public.
These actions help company to recover most of its loses. Thus, it can be argued that these customer rights
should be satisfied by businesses which in turn lead to good for society.

With respect to ethical responsibilities toward employees, employees are important stakeholders so their
commitment and loyalty to firm are crucial (Ferriss et al, 1999; Whitener, 2001; Huselid, 1995; Lee &
Bruvold, 2003). They have right to expect fair payment and favourable working conditions. For instance,
working conditions of low-paid workers at warehouse of Sports Direct indicate evil side of business for its
employees and how company doesn’t respect employees (Guardian, 2015). Moreover, research indicates
that payment is “hygiene factor” but not motivator (Herzberg, 1966). Therefore, companies should create
good for society by encouraging training and development, giving employees challenging and interesting
work, creating environment for innovative thinking and providing job security (Samuel & Chipunza, 2009).
Pandemic created challenge for employees (BBC News, 2020) and most of companies started to work
remotely, which creates extra burden on employees. Taking well-being of employees into consideration is
important since most employees are struggling with various distractions at home thus it might be
challenging for them to concentrate on work. To help its employees, some companies provided stipends to
them for covering their expenses for home-office equipment. For example, Google, workers could spend
$1,000 for their home-office expenses (Forbes, 2020). By this way, businesses can be good for their
employees.

Final way for business to be good for society is to follow business sustainability. Sustainable business is
described as business satisfying needs of existing customers without preventing ability of next generations
to satisfy their own demands and needs (Carroll et al., 2017). Sustainable business aimed to generate
good living standards for both current and next generations of humans and nonhumans through
accomplishing sustainable balance between economic growth, ecosystem and social integrity and fairness
(Stead & Stead, 2004). It has become more popular since companies think that it is right way to do
business but also it is another way to create a competitive advantage. With increase in sustainability trends
and environmental consciousness and green marketing among customers, organizations should change
their processes to satisfy expectations of their customers. Green customers are sensitive in environmental
protection and they prefer pro-environmental brands (Barron’s, 2020). Companies create competitive
advantage by being social responsible organization that is committed to environmental and social
problems. This commitment builds positive brand image and increase customer retention since customers
obtain satisfaction due to making purchases from company which is responsible toward society and they
will have satisfaction for doing the “right” thing that will contribute to their psychological well-being.

There are different ways that business operations can be harmful for natural environment such as climate
change, reduction in energy and water sources, environmental pollution, waste management (Carroll et al.,
2017). Wasting of non-renewable energy resources including coal, natural gas and oil create big issue. To
address this, corporations such as Facebook made investments in renewable energy technology such as
wind, hydropower (Engadget, 2020). Another problem about environment is how businesses can be
effective in waste management. The first thing they could is reduction of waste and second-best way is to
reuse products and resources. If those things aren’t option then organizations can do recycling which
transforms waste to valuable resources (Carroll et al., 2017). Through applying one of those approaches,
businesses could create good for society. An example could be Unilever Sustainable Living Plan (USLP)
which is company’s sustainability strategy which was introduced in 2010. It includes goals such as
enhancing well-being and health of people and decreasing environmental impact of its operations (Polman
& Bhattacharya, 2016). Also, Apple actively recycles iPhone and its extracted materials such as gold and
copper to protect its technology (Apple, 2019). Another example is Lego, which seek out ways to decrease
its carbon footprint (Environment + Energy Leader, 2018). Organizations can be useful for social well-being
through circular economy in which businesses use recycle i.e. they extract value from resources as long as
it is possible and then restoring and recreating resources for lower energy use (McKinsey, 2014). For
instance, Patagonia used circular economy approach in which it started campaign called Worn Wear and
they offer support to its customers so that they can fix damaged clothing by themselves (Fortune, 2007).

Employees are important stakeholders for sustainable businesses (Polman & Bhattacharya, 2016). Green
employees advocate environmentalism at organization (Carroll et al., 2017). Deloitte Global Millennial
Survey (2020) suggests that issues of millennials and generation Z’s focused on societal problems and
they want to change their communities. Their sense of individual responsibility increased and they want
their organizations to be sensitive to environmental problems. It reveals that millennials want to work for
corporations which are transparent regarding their possible impacts on society and environment (Deloitte,
2020). An example that shows critical role of employees in sustainability is Marks & Spencer. Based on an
employee’s idea, company has clothes-recycling boxes in its stores that brings income to Oxfam (Guardian,
2020). This indicates that using business as force for good has been useful for both companies and
customers and employees. Customers will be satisfied with selecting brands that are helpful in enhancing
world rather than damaging it for the sake of profits. Employees will have sense of belonging and
commitment toward organization since they work for company which shares same value with them. And,
organizations which have sustainability aims develop global markets.

To conclude, considering their financial power, business can be strong force for good of society. This could
be accomplished by different and completing ways such as adopting CSR and creating shared value for all
stakeholders, conforming business ethical codes for its customers and employees and finally by supporting
sustainable business. These actions can improve social well-being along with their contribution on
competitive advantage of companies. Thus, it is important for business to motivate its decisions and actions
to support creation of good for society.

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