Arguments for Prioritizing Social and Environmental Responsibility
This argument suggests that companies have a responsibility to address global challenges such as climate change and social inequality
What is moral obligation?
The legal duty of a company’s executives and board of directors to act in the best interest of the company’s shareholders and maximize profits
What is fiduciary duty?
Can you name a specific example of a company that has prioritized profits over social or environmental responsibility?
Dependent on answer
Ex: Marlboro, Coca Cola
This clothing business voted to donate 100% of its Black Friday sales to environmental causes, rather than maximizing profits. Causing some shareholders to file a lawsuit for breach in fiduciary duty.
What is Patagonia?
This term is used to describe the way in which a company is viewed by the public in relation to its social and environmental practices
What is public perception?
These are examples of what being profitable in the marketplace means
What is having a competitive advantage, being innovative, geographic expansion, and creating value for shareholders?
Can you name a specific example of a company that has prioritized social or environmental responsibility over profits?
Dependent on answer
Ex: Ben & Jerry's, Google, Free Water
This company has received backlash for continually investing in R&D and Sustainability over profits for their electric cars.
What is Tesla?
This argument encompasses the laws and regulations put in place by governments to encourage or require companies to act in a socially and environmentally responsible way
What is regulatory compliance?
The argument that suggests companies should prioritize profits to create jobs and stimulate the economy
What is economic growth?
Which side of the argument do you agree with and why?
Dependent on answer
In 2015 this Beetle car company admitted to cheating on emissions tests for millions of diesel vehicles. The board was criticized for failing to detect and address the illegal activity, and several board members resigned or were replaced.
What is Volkswagen?
Name four ways in which a company can prioritize social and environmental responsibility
Some examples may include: reducing carbon footprint, promoting fair labor practices, investing in renewable energy, and donating to social causes
This argument involves remaining financially viable as a way to compete with other competing companies
What is market competition?
How can companies balance their social and environmental responsibilities with their obligation to their shareholders to maximize profits?
Free response
In 2010 this company spilled oil into The Gulf of Mexico. The company's board was criticized for failing to adequately oversee safety measures and for prioritizing profits over environmental and social responsibility.
What is BP?