Society as stakeholder of business [MBA case study]

Can a business be a financial success and also be valuable to society? Is it ethical to outsource production to low-wage countries where working conditions are vastly inferior to those in the US?

There are many examples of companies that do both – “doing well” (financially) and “doing good” (for society and stakeholders), that meet demanding ethical standards and add immense value for all stakeholders, including the society.

Companies benefit society by:

Supplying goods and services that customer cannot, or do not want to, produce themselves
Creating jobs for customers, suppliers, distributors and coworkers.
These people make money to support themselves and their families, pay taxes and use their wages to buy goods and services
Continually developing new goods, services and processes
Investing in new technologies and in the skills of employees
Building up and spreading international standards, e.g. for environmental practices
Spreading “good practice” in different areas, such as the environment and workplace safety

“Society is one of the critical stakeholders of business”.
a. How does business impact local community positively as well as negatively?

b. With the help of a live example from any company, Indian or Multinational, elaborate how businesses are finding innovative ways to bring benefits to themselves as well as to the local communities in which they operate.

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