Friday, November 30, 2012

The Matrix (3rd Issue)

Third Issue: Social
How should the company produce energy while serving people and communities?
How should the company achieve its corporate social responsibilities?

Economic Liberalism:
(Solutions) 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.
(Strengths) Though many foundations are not for profit, they can benefit from more money and technical support. Big companies can help more people and communities.
(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.

(Solutions) The 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.
(Strengths) 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.

Rational Choice:
(Solutions) 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.
(Strengths) 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 company.

(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.
(Weaknesses) 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.

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