Final answer:
Businesses should balance profitability with responsibility, considering not just shareholders but all stakeholders including society and the environment. This balance is crucial for sustainable long-term success. Corporate ethics in emerging technologies and complex social issues are challenging but necessary for overall well-being.
Step-by-step explanation:
Businesses today are concerned with balancing profitability with responsibility. When considering what businesses should prioritize, the most sustainable approach is to balance both profitability and responsibility. This encompasses assuring that a company is profitable while also considering the impact of its actions on society and the environment. In scenarios where profitability and responsibility may conflict, for example, a company facing the choice between higher profits by cutting corners on environmental standards versus adhering to more costly eco-friendly practices, a balance between both interests must be struck to ensure long-term success and social goodwill.
The debate between the shareholder primacy model and the stakeholder theory reflects this tension. While Milton Friedman's perspective suggests that the sole responsibility of businesses is to increase profits for shareholders and rely on government to impose necessary regulations, stakeholder theory suggests businesses should consider all parties affected by their actions, including employees, customers, and the community. Establishing ethical practices, particularly with emerging technologies and the complexities of social, economic, and environmental problems, presents challenges for corporations but is an essential duty to ensure the well-being of multiple stakeholders and society at large.