Materialism and Capitalism
In our society, the majority of people strive to maximise their material welfare. The objective applies to individuals and companies in the same way. On the stock exchange listed companies are under pressure to increase their shareholder value to ensure their success in a globalised and highly competitive marketplace. According to shareholder wealth maximisation theory a company is conditioned to increase the wealth of their shareholders to maximise the society 's welfare. In reality, the costs of restoration as a result of unsustainable practices are passed on to the stakeholders without contributing the profits between shareholders and other stakeholders accordingly. Smith (2003) says "Shareholder theory is prepared …show more content…
The mission is ambitious. In the following, I will go through the steps of the process of becoming restorative as a company.
The Archie Carroll 's CSR Pyramid incorporates four levels of responsibility. The basic objective of all companies is the level of economic responsibility (Schwartz, M. S., & Carroll, A. B. (2003)). Every company has to be profitable to succeed in the global market. The other responsibilities are too often ignored and being profitable becomes often the only objective. Visser,W., Hollender, J.(2011) cited Ray Anderson in 2010 “there is not an industrial company on earth, not an institution of any kind, not mine, not yours, not anyone’s, that is …show more content…
B.(2003)) is to fulfil the desires of global shareholders. Companies are willing to “be a good corporate citizen” (Schwartz, M. S., & Carroll,A.B.2003)) to accomplish their philanthropic responsibility. Namely becoming restorative like Interface. Therefore not only further plundering the planet but also aiming to give back and repair the impact the company had before on its environment.
In conclusion at the moment, most companies are still only meeting their economic responsibility. Companies are changing their business model to limit their impact. However companies most of the time operate in a short term and base the measurement of their success only figures at the end of the balance sheet. Without passion and personal dedication, the longer term advantages of becoming more responsible are outplayed by the short-term impacts of high investment and costly engagement on the profit.
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In our society, the majority of people strive to maximise their material welfare. The objective applies to individuals and companies in the same way. On the stock exchange listed companies are under pressure to increase their shareholder value to ensure their success in a globalised and highly competitive marketplace. According to shareholder wealth maximisation theory a company is conditioned to increase the wealth of their shareholders to maximise the society 's welfare. In reality, the costs of restoration as a result of unsustainable practices are passed on to the stakeholders without contributing the profits between shareholders and other stakeholders accordingly. Smith (2003) says "Shareholder theory is prepared …show more content…
The mission is ambitious. In the following, I will go through the steps of the process of becoming restorative as a company.
The Archie Carroll 's CSR Pyramid incorporates four levels of responsibility. The basic objective of all companies is the level of economic responsibility (Schwartz, M. S., & Carroll, A. B. (2003)). Every company has to be profitable to succeed in the global market. The other responsibilities are too often ignored and being profitable becomes often the only objective. Visser,W., Hollender, J.(2011) cited Ray Anderson in 2010 “there is not an industrial company on earth, not an institution of any kind, not mine, not yours, not anyone’s, that is …show more content…
B.(2003)) is to fulfil the desires of global shareholders. Companies are willing to “be a good corporate citizen” (Schwartz, M. S., & Carroll,A.B.2003)) to accomplish their philanthropic responsibility. Namely becoming restorative like Interface. Therefore not only further plundering the planet but also aiming to give back and repair the impact the company had before on its environment.
In conclusion at the moment, most companies are still only meeting their economic responsibility. Companies are changing their business model to limit their impact. However companies most of the time operate in a short term and base the measurement of their success only figures at the end of the balance sheet. Without passion and personal dedication, the longer term advantages of becoming more responsible are outplayed by the short-term impacts of high investment and costly engagement on the profit.
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