A for-profit corporation should learn to balance the desires of its consumers with its search for profit. Companies can strike this equilibrium by ensuring a mutual economy that takes into consideration the needs of the individual (business) and the collective (Williams & Scott, 2012). To operate beyond maximizing shareholder worth means contributing to the societal well-being by meeting the needs of the customers, empowering individuals, and having philosophies for a particular cause that leaves the world a better place. Thus, a corporation must understand how to build people and enable the customers to get more value from their purchases as long as it is making profits for its shareholders. While the primary goal is to make a profit, it is so that the company can do something better, which becomes its higher purpose.
Some companies have already learned how to build a relationship with the people they serve in addition to maximizing profits. For example, Unilever claims its objective is to ensure a sustainable living, creating a better future hence helping people to feel good, look good, and obtain more from their lives (Pontefract, 2016). It is imperative to note that even though this is a consumer company, “maximizing profits” is not its only purpose. On the contrary, the $60 billion Corporation is an inspiration that gives people a deeper sense of meaning to its consumers and employees globally. A business must understand that to work on satisfying one end of the relationship is selfish, but both customer value and shareholder value should be maximized simultaneously. Focusing on one shareholder can be bad for the corporation and its brand especially if a business chooses to exploit its consumers as a means of satisfying its owners, which is similar to a death-wish. Concentrating on customer needs can appear to be costly but failing to focus on them is more expensive. It is important to understand that when customers are satisfied, their purchases increases and, in turn, builds revenue for the company. Moreover, addressing consumer needs can turn them into brand advocates who can bring in new buyers without the associated cost of acquisition. Overall, satisfying customers results in consumer loyalty, hence consistent purchases and high revenues, which are good for the shareholders.
Several companies think that if a company becomes customer-oriented, it may not be able to sustain itself in the long-run. Being customer-focused means generating value for the society and making it a better place and is addressed by the concept of social responsibility. A business can only thrive if it operates in a thriving community, which is why the idea of firms sustainability and social responsibility are interrelated. Innovative brand development and investing in consumer loyalty ensures business sustainability (Zadek, Forstater, & Yu, 2012). Business sustainability requires responsibility in that it demands the considerate use of limited resources in meeting daily organizational needs in a way that ensures these resources are reserved to meet the needs of the future generations. A business that operates with the generations to come in mind will create value for its products and generate a deeper meaning for the lives of its consumers. Sustainability means focusing on the triple-bottom-line, which is about paying attention to financial, social, and environmental responsibilities (Zadek, Forstater, & Yu, 2012). To ensure sustainability, a company will have to engage its stakeholders, which means learning from the employees, customers, and the surrounding community. However, it is important to realize that stakeholder engagement is more than just pushing out messages. It requires an understanding of the resistance, establishing a common ground, and making joint-decisions with the stakeholders. Focusing on consumers is critical to the long-term sustainability of a company since consumers have learned to use their purchasing power as a means of punishing and pressuring organizations that fail to meet certain standards. For instance, if a business does not meet the standards set for product safety, environmental protection, and community investment, it may lose customers to other businesses that seem to understand the rules.
Intellectual property rights are important in their ability to safeguard creativity. Protective intellectual property promotes progress and well-being of the community in that it encourages creativity and innovation with regard to culture and technology. Moreover, when an inventor receives legal protection, he or she gains the motivation and additional resources to keep creating new products that benefit the community. Thus, promoting and protecting intellectual property facilitates industrial and economic growth, new job opportunities as well as the ability to enjoy quality life (World Intellectual Property Organization, 2012). Intellectual properties need to be respected in that they strike a balance between the rights of the inventor and those of the consumer by establishing an environment of equality that allows creativity and invention to thrive for the benefit of the society (World Intellectual Property Organization, 2012). Furthermore, these legal safeguards protect consumers by giving them the confidence to purchase products and services since international trademark discourages piracy and counterfeiting. Overall, the protection of intellectual property rewards creativity and human effort and ultimately fuel societal progress.
Even for companies whose products save lives, it is important for them to enjoy intellectual property rights to encourage these innovators and investors to do more and improve on what is already there. Such creators have a duty not only to the society but also to the shareholders who invest in the creation of such products. However, it is important to strike a balance between the expenses incurred by the consumer and the profits gained by the shareholders. Moreover, without legal protection and profitability, business sustainability would be impossible. From a biblical perspective, businesses should not steal, deal falsely or lie (Leviticus 19:11) neither should they use false balances (Proverbs 11:1). Thus, it is important to ensure that corporations give customers the right value for their pay.
While companies engage in legal battles to fight for what they consider theirs such as intellectual properties, it is important for them to remember their obligation to the consumers. Striking a balance between the value given to the buyers and the shareholders is critical to business sustainability since it establishes a long-term relationship with the former, which ensures profitability for the latter. Thus, corporate responsibility is a crucial element in business sustainability and should constantly be evaluated and obeyed.
References
Pontefract, D. (2016). Should Companies Serve Only Their Shareholders or Their Stakeholders More Broadly? Forbes. Retrieved from www.forbes.com/sites/danpontefract/2016/05/09/shareholders-or-stakeholders/#196fddbb13d2
Williams, D. K., & Scott, M. M. (2012). It’s Time to Balance Profits and Purpose. Harvard Business Review, hbr.org/2012/09/its-time-to-balance-profits-an.
World Intellectual Property Organization. (2012). What is Intellectual Property? Switzerland: WIPO Publication No. 450(E).
Zadek, S., Forstater, M., & Yu, K. (2012). Corporate responsibility and sustainable economic development in China: Implications for business. Washington DC: National Chamber Foundation.
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