GMAT Essays (AWA)

Question:
"The desire of corporations to maximize profits creates conflict with the general welfare of the nation at large."

Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations or reading.


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Answer :
I agree to the opinion stated that the stated goal of corporation is to maximise profit and there are cases when maximising profit often leads to either neglect national goals or go against the general welfare of the nation.

Let us first talk about the Outsourcing issue, this is a case where jobs from one country are moved to another because of the cheap and abundant quality labor. The national interest is defintely hurt as people lose jobs in more expensive countries which have been transferred to cheaper nations.

Another issue which points to corporations overlooking national welfare is the climate and pollution. As an example the corporations will go on cutting the trees for paper and other products unless the forest is decimated. This is against the welfare of the nation.

In developing countries there is another issue which points out at the corporations flouting rules for maximising profit. The issue is child labor, thousands of poor kids toil for hours in the sweatshops producing items for the corporations for minimal wages. The national welfare is compromised as bright young minds are made to labor for hours rather than attending schools.

I do concede that some corporations have a corporate social responsibility and take measures to improve the life of the employee and the surroundings in which they operate, but they are only a few in number.

To conclude I would like to infer that the corporations are here to stay and they will often take certain actions which will go against the general welfare at large, the residents and the governments of the area have to be more vigilant to ensure that the corporations are alligned with the national interest of the country. With the coexistence of corporations and vigilant civic and social bodies we can ensure welfare for all.