Organization - Profit Motive and Social Awareness   by Narayanan Krishnaswamy

Organization - Profit Motive and Social Awareness

The organizations have profit motive. The society, wants them to show social awareness and act ethically. The society expects the organizations to realize the immediate social needs and their active participation in the alleviation of suffering. Such ethical actions have always been fruitful. Extensive research has proved that an ethical approach in all its activities-related to employees, customers and the public- has always been beneficial to the company. So money spent on such activities is well spent. The ethical outlook of the CEO of Malden Mills in Massachusetts is worth mentioning. When the textile wing burned to the ground, he decided to rebuild it there itself and not to move it to overseas on cost grounds. He also paid the wages for the ninety days which required for the rebuilding of the facilities. This ethical gesture not only created increased goodwill among employees but also in the society. Employee commitment grows out of a strong belief and realization among them of the inseparable nature of their growth with that of the company.

An organization has codes for customer approach. The ethical conduct adopted towards customers affects performance of the company in a positive manner and help innovation to fulfill the need of the society. This ethical approach to customers has ingrained employee and general welfare in it.

The trust established at various level--employee, customer and society--results in proper ethical climate in an organization. This has a positive relationship with the ROI of a company. Though it is difficult to digest spending part of the income on activities that do not directly add to income, a balance should be struck. A negative impact may result in elimination from the market and attract legal actions. Studies have shown that a positive ethical approach has greatly benefited organizations. A profit motive bereft of ethical and social welfare stand would result in what has occurred to Columbia\HCA, which was accused of overcharging the government for Medicare services. The same resulted to Seers in automobile for selling and charging for unnecessary parts and to Beech-Nut for providing wrong information about their 'juice'.

But Johnson and Johnson which acted ethically when it withdrew products, benefited in the long run though it suffered an immediate loss through such ethical outlook. This ethical atmosphere should be created and supported and practiced from above and percolate to the lower rungs and to the customers and society in general.

Contact:(C) Narayanan Krishnaswamy, prof.english@gmail.com

About the Author

Professor of English. Taught English at university level for 37 years. Turned freelance writer,editor and teacher on retirement.