Corporate Greed Essay

1387 Words Oct 13th, 2014 6 Pages
Corporate greed, by definition, is when a company chooses to place significance on increasing profits in a way that harms employees, consumers and the environment. It occurs when making money becomes the only goal, and the other company’s social responsibility is ignored. There is some debate with companies over whether they are being greedy versus looking for the best business practice. How can one tell if a company’s practice is defined as corporate greed or if the company is just working to reduce costs in order to increase profit growth? How much social responsibility does a company have to society and the environment? An article written by Edmund Bradley, about the problem with corporate greed, gave a perspective on these …show more content…
In the Wealth of Nations he argued that if each individual were free to seek his or her self-interest the whole society would be better off (Bragues, George, 2009). His views were and still are the main argument corporations use to justify greed. According to The Greed Effect: Positive and Negative Consequence, greed can improve the work ethics of employees and thus increase profits of the corporations (2008). This will insure the corporation’s sustainability and result in insuring employee’s well being and customer satisfaction. Also Archie Carroll argued that “Economic profit and social responsibility ethics are not mutually exclusive” (Robert W. Sexty, 2011, p.151) he viewed profit as basic corporate responsibility toward the society. Greed will almost definitely help corporations fulfill the basic build block of Carroll’s pyramid of corporate social responsibility. However greed seems to fail in motivating corporations to fulfill the rest of the Carroll’s pyramid of social responsibility except in the case of strategic giving and enlightened self-interest. In fact greed may encourage the executives of corporations to not meet their legal or ethical responsibility and discourage them from philanthropic responsibility unless it is to achieve profit maximization. This results in pressure being applied on executives by the shareholders, to focus only on the economic circle of the triple bottom line. Not only can greed result in the corporation’s

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