Life_Straw_Case_Study

The case study of Life Straw asks the question how can person make money and benefit society at the same time. The primary goal of any business is to make a profit, but business also teaches us that it is the organization's responsibility to minimize its negative impact on society and maximize its positive impact. The concept of social responsibility notes that those who choose to do business should do so in a manner that benefits the society in which it does business. In the basic principles of marketing, we learn that marketing's primary focus is to find potential customers needs and satisfy them. So to answer the question of how Life Straw can both make money, and benefit society at the same time, it does so by being a business that's primary goal is to help society, while at the same time turning a profit. Essentially, the company is a for-profit, non-for profit organization. But to be more specific, Life Straw worked how all other businesses should work. Providing a good or service that did not previously exist, in an affordable way, to the people that need it. It took into account the environmental limitations of an area, and literally invented a solution tailor-made for that area. It was a philanthropic endeavor no doubt, but essentially it was no different than any other business finding a market need and satisfying it. The main difference is that this company's offering greatly benefits society and does not carry a price tag that makes it useless to those who need it. Seventh Generation is a company that benefits society while maintaining profitability. The company offers cleaning and personal products that are chlorine free, in 100% recycled containers. While not as beneficial to society as Life Straw may be, its main effort is to leave the planet in better condition for future generations. Green Mountain coffee, the world's leading seller of fair-trade coffee, spearheads initiatives to end poverty and hunger in the areas that supply Green Mountain with coffee beans. It also sells its coffee products in containers made entirely out of corn, therefore reducing petrochemical contamination of our soil and landfills. The question, “What other companies make profit but also benefit society'” is pretty vague. It could be argued that the major oil industries benefit society while making a profit. Without the oil industry, it could be argued that the standard of living around the globe would be significantly decreased, or otherwise affected. It could also be argued that Facebook benefits society by providing a free environment for social interaction, when meeting friends in person is impossible, or otherwise inconvenient. Personally, I do not think that most companies in America can be both beneficial to society and make a profit. While it is certainly possible, most businesses are just that, businesses. And businesses primary goal is to offer a good or service for profit. America is in what is called a ‘service economy’ where most companies provide a service for select group of customers. We are not a nation that exists to fix all the problems of the planet. That is where each businesses concept of ethics and social responsibility come into play. If a company should choose to make its money in a way that benefit society at large, then that company will both turn a profit and benefit society as long as it's successful. Another possibility is that a company will make money in a way that does not directly benefit society, but will use some of its profit for philanthropic work. Many American businesses have such policies and philanthropic funds. Many companies in America that benefit society, in the same way that Life Straw does, are nonprofit organizations such as the American Red Cross, Habitat for Humanity, or Greenpeace. Organizations such as these exist for the sole purpose of benefiting society, but they also have an overhead. For nonprofit organizations to continue operating, they need to take in some form of revenue. Fundraisers are a good example of a nonprofit organization seeking to gain capital, and they tend to work by providing a good or service at a reasonable price, ‘for a good cause’. Any American businesses can choose to operate in a way that is good for society, the environment, less-developed nations, etc., but that tends to be expensive. In order to turn a profit many businesses operate in a fashion that is cost effective. Coca-Cola, the American soda supergiant, says that its mission is to refresh the world. It provides jobs to more than 130,000 people worldwide, and that alone is beneficial to society. But in order to provide its refreshing product at a competitive price, paramilitary groups working for subsidiary bottling companies have killed union leaders and terrified those that would follow them. Wal-Mart provides goods at extremely affordable rates and has a rather large workforce. On the surface, this may seem beneficial to society, but Wal-Mart takes criticisms including workforce discrimination against the promotion of women, and decimating local businesses. The bottom line is, any business that makes profit its primary goal, and does not provide a good or service that directly benefits society, will not do both effectively. There will be a conflict of interest on whether to improve the organization or the society in which it operates. And as long as management's primary responsibility is to make profit for shareholders, social responsibility and philanthropy will remain as businesses secondary objective.