Profit is not always the point Dibya Raj Sapkota Dipesh Raj Pandey Raj Maharjan

There is one and only one social responsibility of business- To engage its resources and engage in activities designed to increase its profits -Milton Friedman

Three Growth models (3G) Consistent Competitive Profitable

4g Consistent Competitive Profitable Responsible

The Social Responsibility of Business

The Social Responsibility of Business Merck shared the secrets of how to make penicillin with his competitors so that they could do so also by saving thousands of lives in world War II. Merck said, “We try never to forget that medicine is for the people. It is not for the profits. The profits follow and if we remember that, they have never failed to appear.

The Social Responsibility of Business Alex Edmans studied the effect of being a best company to work for on future stock returns. He found that the “100 best companies to work for in America” beat their peers by 2- 3%/year over 1984-2009. The results of Alex suggest that treating your employees well actually pays off in terms of firm value.

The Social Responsibility of Business

The Social Responsibility of Business Costco’s management believes that workers should be spending these holidays with their families. Profits have topped $2 billion in each of the last 2 years.

The Social Responsibility of Business While Alex's study focuses on employee well being, research by his colleague Yannis Yanu and many others have shown that other dimensions of social responsibility such as customers well-being, society and environment well-being also improve firm value.

So, WHY DO BUSINESSES EXIST?

It is unethical to make loss Is profit ethical word ? It is unethical to make loss

Oranagization Approach towards Shareholder Stakesholders

Triple Bottom Line concept (3BL) People, planet and profit Measure organization success based on social, ecological and economic Responsibility towards Stakeholder rather than Shareholder

Planet Maintain natural order do no harm and minimize environmental impact  carefully managing its consumption of energy and non-renewables and reducing manufacturing waste

People fair and beneficial business practices toward labor and the community The "upstreaming" of a portion of profit back to the original producer of raw materials not use child labour would pay fair salaries to its workers, would maintain a safe work environment and tolerable working hours

Profit economic value created by the organization differs from traditional accounting definitions of profit real economic benefit enjoyed by the host society

Caring about the society is not at the expenses of profit, it support profit.

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