Despite negative connotations associated with the idea of corporations, businesses have the potential to positively influence the global community. For example, KPMG, an international accounting firm, recently granted $450,000 to the Red Cross Foundation in an effort to rehabilitate the victims of Typhoon Haiyan in the Philippines. The world now views KPMG as a socially aware and responsible establishment. This undoubtedly puts them in a new light—resonating especially well with Filipino clients around the world. This is an application of the Stakeholder Theory: corporate executives, customers, and employees seeking similar goals resulting in a progressive expansion in which all stakeholders are satisfied. Businesses should be encouraged to be more active in their global community, as the rewards of kindness yield positive benefits—for both the business and society.
The Stakeholder Theory also states that “a business that ignores local customs and law is a business in decline”. This applies to an incident involving a fire in the Triangle Shirtwaist factory in New York in 1911, killing 146 people. The movement that followed the fire called for safer working environments in the US. Even today, this case is looked at as a precedent for improving conditions and security in factories in Bangladesh and South Asia. Just like how employees have a duty to serve their designated businesses, those businesses are responsible for the well-being and safety of their employees during the time and place in which they work. Workers are not soldiers, and should not be treated as if their lives are expendable.
Sources:
http://www.kpmg.com/ph/en/pages/kpmgturnsovertyphoonhaiyangranttoredcross.aspx