What Moral Obligations Do Businesses Have?

I've been considering different philanthropic programs from companies and I asked myself; what moral obligations do businesses have? Should a company do all in its power to minimize environmental impact? Should a company put energy and resources into its community? Should a company keep workers on its payroll if they are no longer useful?

I believe that a company can be a great positive impact in its community and the world at large, but there is a balance between too much philanthropy and moral negligence. A company should do all it can to maximize profits in a positive way. When it comes down to it, companies are just a collection of people working towards a common goal. That goal is often profit. A corporate culture then evolves around that goal and it is easy to focus in, ignoring moral obligations.

A company can set a goal to be environmentally responsible at a fair profit. Then evolving a corporate culture around a morally positive goal will be much easier. People will feel they are making a positive impact in the world and will fill, at least one, moral obligation. But taking an environmentally responsible business path will be more challenging. Costs of renewable goods is often higher then other options, this can put a company at a competitive disadvantage. So how do you make up for higher costs? The company must find a balance between profitability and moral obligations.

Must a company always act in the best interest of the environment and those in it? Simply, no. It is unfeasible to believe this is possible. But can a company take on projects and ideals that increase its philanthropy? A resounding yes!

Now as consumers we must make a choice between moral obligations and prices. Often companies that have little to no philanthropic efforts can offer goods at lower prices. So we must look into what we consume and see if companies trying to make a positive impact in the world deserve the price premium.