Corporate Social Responsibility Persuasive Essay Example
Although the main purpose of any business is to increase its revenue, there is a global tendency to make companies more society-oriented. Globalization allows many international companies to exploit the labor of the members of less prosperous societies. However, such strategy is not going to be productive in the long run. The experience of such worldwide companies as Nike proves that contributing to society is no less important than making profit.
Milton Friedman, a famous American economist who received the 1976 Nobel Memorial Prize in Economic Sciences, studied consumption analysis, as well as monetary theory and history. He was a strong proponent of the idea that business should never involve itself in charity, because such actions would contradict to its main goals. Moreover, he believed that the whole structure of the free market might be endangered because of the focus on social needs. He emphasized that business always comes first and used the term “cloak of social responsibility” to convey his attitude towards the idea of mixing the two opposing directions. Although Friedman’s ideas were highly popular in the twentieth century, they seem to work no longer both for the international and local business.
In fact, today’s globalized world requires a high degree of transparency from corporations. If they focus solely on creating sweatshops and pursuing profit, it might have very negative consequences on their business. For instance, Nike company faced a conflict triggered by using SF 6 in its Air footwear. Not only did it cause the negative implications for the environment, but also revealed an ugly truth about the company’s poor working conditions in Asia. The conflict attracted the attention of both market and nonmarket stakeholders. Nike’s owners, managers, employees and suppliers were severely compromised. The company had to deal with the public claims on behalf of the anti-sweatshop organizations, such as United Students Against Sweatshops, and the environmental protection organizations, such as Greenpeace. As a result, the company started losing customers because of its unethical behavior.
To improve the relationship within both groups of its stakeholders, Nike was forced to shift emphasis on the corporate social responsibility. Firstly, the company published a detailed report on how it was overcoming SF6 problem. Secondly, it launched RED charity campaign to fight AIDS in Africa. It also attracted world-famous athletes to represent Nike brand as public advocates. Moreover, the company launched a series of motivational programs to encourage its employees. Nike had to improve its working conditions in Asia because of the public disapproval. Therefore, it is crucial for any worldwide company to consider corporate social responsibility to maintain and enhance its reputation in the global market.
I strongly believe that it is not necessary to wait until some unpleasant truth is revealed about the company. I think it will be much more productive to incorporate the principles of social responsibility into the business structure at once. For instance, Everlane innovative company provides a wonderful example of ethical leadership. This clothing business is highly unusual, as it follows the rule of “radical transparency.” It is amazing that its CEO, Mr. Preysman openly names the factories he partners with, instead of quietly setting a company somewhere in a remote Asian sweatshop. What is more, Everlane executives regularly visit each factory and make sure its owners provide their employees with the sufficient working conditions. This example also proves that any modern business should care about the society in the twenty-first century, even if it is not a global corporation.