A company is considered to be a separate legal entity or individual, however, the question arises as to be the kind of ‘person’ that a company should be. A company should have the interests of its stakeholders first as with great power comes great responsibility. This is referred to as stakeholder theory and is mainly concerned with ensuring that the interests of the company’s stakeholders are met first in the pursuit of stable and futuristic financial performance. Stakeholder theory also emphasizes that the company should conduct its operates in a manner that takes into consideration external stakeholders including the community at large. This is essentially emphasized with the fact that corporations exist in industries that have competitive players.
This motivates them to look for any possible way in which they can achieve profitability, gain market share and dominate the market. The question remains how far should corporations go in the pursuit of profitability leading to the application of ethics in carrying out business operations. Corporations should avoid seeking illegal profit margins and seek to employ ethical principles within their corporate culture. In this way, every member of the organization from the director to the lower-level employees are able to take part in creating an ethical workplace.
It is also imperative for corporations to protect the environment in which they operate. This is part of corporate social responsibility where an organization is expected to take responsibility for its effects on the environment and participate in social wellbeing. Most organizations have such a significant carbon footprint that the world is currently under threat of global warming. Corporations are therefore expected to preserve the environment, contribute to the community in the form of donations and create a sustainable futuristic environment (The Corporation, 1).