Reflective Journal Entry 1
Topic: Should business be concerned about more than profit?
Today, more companies are accompanied with social responsibility, which served as positive impacts towards the environment, communities, employees as well as the stakeholders. In order for a company to achieve long-term profits, it is believed a company should comply and follow the rules of social responsibility. Recently, Toyota had recalled up to 242,000 cars due to breaking system of the cars, including 1650 Prius cars in Australia (The Age 2013). This shows Toyota is performing very well in concerning social and environment responsibility. Toyota could have save the costs of recalling cars from all over the world instead; it can be see Toyota value highly in social and environment responsibility. By recalling cars that are having problem with the braking systems, thousands of lives can be saved.
I feel very happy and glad that Toyota value lives over profits. There will be sense of security grow in the people who are using automobile of Toyota. Toyota is a very good example for any company all over the world, one should not concern profits over anything else, including human lives. By announcing the news of problem in the braking system, many lives can be saved. Toyota did not sacrificed innocence human lives because of the profits. On the other hand, this will be the benefit towards Toyota as there is an establishment of trustworthy in the brand.
In circumstances, people may say the ultimate purpose of setting up a business is to make profit out of it. People deemed profit is so important towards a business as it indicates whether a business can operate for a foreseeable future. According to Edward (2005, p. 118), stockholder theory business says that a firm should concern to maximize the welfare of stockholders. It means business should only concern about profits over anything else.
From the incident of Toyota, I have learnt...