Third Issue: Social
How should the company produce energy while serving people and communities?
How should the company achieve its corporate social responsibilities?
The company gives a share of the money it earns to programs and
charity. The bigger the company earns, the better it could help more
people. For example, Mirant gives millions of dollars to its foundation.
Though many foundations are not for profit, they can benefit from more
money and technical support. Big companies can help more people and
(Weaknesses) Just giving money may not be enough because
it may be necessary to address the root causes of poverty and
injustice. One company doing social work has less impact than a country
or many firms helping lives.
company follows the social program and charity work outlined by the
state. It may focus on poor and rural communities to give them more
opportunities. For example, Mirant has a rural electrification plan.
Following the programs of the state ensures that many citizens could
improve their lives and opportunities. The state can focus resources to
those who really need it.
(Weaknesses) Government intervention in
social welfare can mean more taxes to support social programs. Firms
have less freedom on how to spend money and do their social
responsibility because the state is more powerful.
The company makes social programs where they can benefit. The
communities appreciate this help. For example, Mirant has education and
livelihood programs where they are have plants and offices.
Teaching people to help themselves creates mutual benefits. The firm
creates potential consumers who will use more energy, while the people
have better lives.
(Weaknesses) Acting according to one’s personal
and business interests can have limited or poor results. Sometimes, the
social needs of the people conflict with the business goals of the
(Solutions) The state owns the firm. The
company creates a system where every worker and community member has
the same standard of living. Capitalist and proletariats work together
to create a better society.
(Strengths) Citizens have equity and
experience same living conditions. The state makes sure that no one is
poor and no one is rich. People have their basic needs.
The social welfare system may be inefficient because everything has to
pass through the government. People have less incentive to work hard and
save because the government gives everything to them.