Improving employees’ welfare through better wages and working conditions and giving back to the community are important corporate practices. They are standard practices that companies around the world have adopted as part of their strategies to meet international standards of operations and gain competitive advantage. Therefore, I would use my business’ profits to increase the wages of my employers and improve their working conditions. I would also donate some of it to poverty relief organizations.
Using the profits as mentioned is the best choice because it would help my business to initiate and implement a corporate social responsibility roadmap aimed at giving back to the community and developing a healthy working relationship with the local communities. Additionally, it will enable my business to gain a social license, which critical is in ensuring that my business remains competitive in attracting new talents and even business partners.
The local community would be the principal beneficiary of the choice because the employees will enjoy higher wages and better working conditions, which will translate into improved living standards. The donations to the poverty relief organizations would improve the living standards of the local community. While my profit margins will decrease, all stakeholders will gain something from it such that none of them is significantly disadvantaged. By obtaining a social license, my business will improve its competitiveness in the region, which would be critical for plans of expansion, even to new territories. Additionally, my en enterprise will benefit from increased job satisfaction of the employees, which will translate into increased input and profits and low employee turnover. My business will also be cushioned from the threat of new entrants too.