Question

Some people believe that the primary purpose of business is to make money, while others believe that businesses have responsibilities towards society. Discuss both views and give your own opinion.

Model Answer

These days, private companies provide many services that were previously the responsibility of the government. As the private sector takes more control of our lives, it is natural to ask whether businesses have a duty of care to wider society. Personally, I believe that businesses operate best when they focus solely on making a profit.

Some people believe that businesses have a responsibility to help improve people's quality of life. This is a persuasive argument when you consider that most other large organisations dedicate themselves to this goal. Organisations such as co-operative societies, charities, building societies, religious groups, and political parties can combine their interests with the goal of improving society. Why should businesses be any different? Businesses are so deeply embedded in the fabric of society that it seems obvious that their success or failure should, in part, be measured by their contribution to society.

The counter-argument is that if businesses focus on areas other than making money, they are likely to be outperformed by rival companies. In order to succeed in today's competitive environment, companies need to prioritise the bottom line. Focusing on profits ensures that a private company can respond to market conditions and provide customers with the products that they want. This brutal efficiency is not necessarily a bad thing, as a successful company will generate more tax revenue, which the government can spend on social programmes.

In conclusion, businesses and government have differing roles in society. It is the government's duty to ensure a functioning society, whereas businesses are best left to their own commercial interests.

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