Question

Will you aspire to have a business that creates value for society? Or a business that creates value for shareholders? Why?

Answer 1

We are asked whether we should have a business that creates value for society or a business that creates value for shareholders and the reasons. It will be better to aspire to have a business that creates value for society for the following reasons:

• The shareholders do not live in a vacuum.
• They also live in society and by having a business that creates value for the society we will be able to help the shareholders also along with other people.
• If we run a business that provides value to the shareholders only society may suffer.
• In case society suffers the shareholders will also suffer.
• The best sort of business will be one that has a little of both of these factors.
• In other words, it should have value for society along with having value for shareholders but society should always come first.

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Answer 2

• For solving this question we first need to learn what is the business which create the value for society and business that create value for shareholders.
• Business which creates value for society is also known as- social conscious business- by becoming social entrepreneur we can operate a business with the purpose of benefiting for society such as producing and marketing a green product which helps the environment.
• When in business, value is created for shareholders when the business increases profits. Since the value of a company and shares of company are based on the net present value.
• So there are two complete different meaning in both types of business.
• So I will aspire to have the business which will creates value for the society. If I produce such product which will help the society and environment will be good for me and society.
• It will also automatically lead to increase in net value.
• So I will acquire business which creates value for society.

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