Good Essay On Social Responsibility

I don’t think the company veil will be pierced when companies are required by law to be socially responsible (Small Business Support, 2015). Companies do not exist in vacuum. They have an external environment that makes it possible for them to operate well. No company that can operate in isolation. Therefore it would be good if companies also try to improve the welfare of the environment in which they operate since it is also healthy for the company.
For instance, when a company participates in social responsible activities its public image, brand and reputation will be building since it will create goodwill and a positive image of the society towards the company (Taylor, 2010). If the company is able to earn trust and a good reputation from the public then it could be the best valuable asset that a company can have unlike when the company decides to protect the corporate veil. Secondly, the company will not be piercing its corporate when it participates in lifting the wellbeing of the society in which it operate since it attracts and retain staffs since it increase employee commitment, job satisfaction and performance (Small Business Support, 2015). Reason being most employees feel good and motivated when they realize their work has brought a positive impact to the society more than just serving to improve the wellbeing of the shareholders alone.
Additionally, a company will gain more on participating on socially responsible activities other than just working to protect its shareholders since customers are usually attracted to companies that are socially responsible. It is going to differentiate that company from its competitors. Socially responsible activities also attract investors and financiers to the company, reason being they understand the reputation brought about by these actions and also are a sign of good management (Nibusinessinfo, 2015).
Conclusively, companies will earn more from being socially responsible than when just concentrating on protecting the corporate veil. Corporate veil may not bring customers, attract inventors, build good public image or even retain staffs like social responsibility does. It is ethical for companies also to care about the welfare of the society where they operate in other than just concentrating on making profits and benefiting their shareholders and protecting them from liability.

References

Dianne Taylor. (2010). Why Social Responsibility is Important To Your Business:. Retrieved from http://businessthatcares.blogspot.com/2010/11/why-social-responsibility-is-important.html
Nibusinessinfo. (2015). The business benefits of corporate social responsibility | nibusinessinfo.co.uk. Retrieved from https://www.nibusinessinfo.co.uk/content/business-benefits-corporate-social-responsibility
Small Business Support. (2015). Piercing the Corporate Veil: How to Avoid Personal Liability in Business | Small Business Support. Retrieved from http://smallbusiness.jdsupra.com/post/piercing-the-corporate-veil-how-to-avoid-personal-liability-in-business