Sample Dissertation Conclusion Paper on Diluting Stock Values by Placing the Interests of the General Public over Profits

The shape of business is evolving at a fast rate. Business corporations are taking new forms and there are emerging hybrids of the traditional business corporations. One such hybrid is the benefit corporation. This model has to ensure there is value creation for the stakeholders including the community, customers, suppliers, employees and the environment as well as for the shareholders in the form of profit. This paper seeks to discuss the issues raised in the Forbes article “The Rise of the Charitable For-Profit Entity” (Gomez, 2012) about the concept of the benefit corporation and discuss whether the profits of such organizations are diluted by placing social and environmental responsibility above profits.

The question raised by Gomez (2012) is whether the value of stock in benefit corporations is being diluted by their added responsibility to the environment and other stakeholders. She goes on to reiterate that the profitability of such companies is affected and that some potential board members may actually think twice before serving in such a position. But looking at it from another angle, this additional responsibility may actually be the best thing to ever happen for both the not-for-profit corporations and the for-profit corporations. This is owing to the fact that benefit corporations are a hybrid of the two and the corporate world is not all about greed and making a profit but also takes into consideration the impact on all the stakeholders (U, 2013).

One of the advantages of benefit corporations is that they offer a way out for organizations that have found it difficult to attain their social responsibility while maintaining a healthy bottom line (Carroll, 2014). This is due to the fact that a B-corp, as they are otherwise known, must show its positive impact on the society and environment in order to continue operating. It is therefore just a matter of time before the B-corps become the order of the day for businesses and all the skepticism will be wiped away as the profitability is maintained as well as improving the welfare of all the stakeholders involved.

References

Carroll, A. B., Buchholtz, A. K. (2014). Business and Society: Ethics, Sustainability and Stakeholder Management. Stamford, CT, USA: Cengage Learning.

U, Elizabeth. (2013). Raising Dough: The Complete Guide to Financing a Socially Responsible Food Business. Vermont, USA: Chelsea Green Publishing.