What Impact Has Corporate Power Had On The Social World Essay

What Impact Has Corporate Power Had On The Social World - Essay Example To meet this desire of the stakeholders most of the corporate houses have a specified set of social goals which is treated as a part of the overall business activities. Nowadays, the objectives of the business can no more be limited to achieving business profits. It cannot be considered as a ‘money generating machine’ set up with the sole purpose of profit generation. Previously, the businesses were established with some short term goals with little concern for the long term scenario. However, in the current environment the focus of the business has shifted from short term to long term perspective. This renewed focus is beneficial for the companies as well as the society in general. In fact the businesses now play a significant role in the society. They take part in a number of social activities. The companies direct a significant amount of funds towards achieving the social needs. The funds are used for the development of schools, institutions, parks, etc. The big corporate houses sponsor sports and cultural programs. The corporate actively indulge in functions other than pursuing their business interests. The companies thus play an important role in the development of the society. Various factors in the society have led to the creation of a climate that foster the criticism and prosperity of the business. While some of these factors are inter-related yet again there are some factors that are independent. Affluence and Education- The two factors- education and affluence have developed alongside. The empowerment of the society has raised the expectations from institutions like the businesses. Affluence includes aspects like wealth level, disposable income and living standard of the society. The measures of standard of living in US suggest a continuous growth over the decades however this growth has curtailed in the last five years. Besides a rising standard of living an improvement in the formal education has also raised the expectations of the society. A combination of these factors has laid the foundations of a society that encourages criticisms of the business. Increased awareness through internet and television- Though the reach of the print media is limited , the electronic media i.e. television is accessible to a wider populace. The television facilitates transmission of the information to wider audiences thereby creating an environment of business criticism. News programs The business criticism appears on the electronic media in three ways. Firstly, this is through the news shows and investigative programs. A study conducted by the â€Å"Corporate Reputation Watch† senior executives highlights that media criticism and irresponsible or unethical behavior can be a serious threat to the reputation of a company. While a majority of the business leaders are of the view that the news programs are against them and therefore overstate the facts and exaggerate the issue but the journalist see it in a different light. The