Financial management is a crucial aspect of business operations, and it’s no surprise that this topic frequently appears in IELTS Writing Task 2 exams. Based on recent trends and historical data from reputable IELTS preparation websites, we can expect questions related to business financial management tools to continue being popular in future tests. Let’s examine a relevant question that has appeared in past exams and provide sample essays to help you prepare effectively.
Some people believe that businesses should focus solely on making profits, while others argue that they have a responsibility to contribute to society as well. Discuss both views and give your own opinion.
Analysis of the Question
This question touches on the role of financial markets in managing inflation and broader economic issues. It requires candidates to discuss two contrasting viewpoints on business objectives and express their own opinion. The key aspects to address are:
- The argument for profit-focused businesses
- The argument for socially responsible businesses
- Your personal stance on the issue
Let’s examine three sample essays of varying quality, representing different band scores.
Sample Essay 1 (Band 8-9)
In today’s globalized economy, the debate over whether businesses should prioritize profits or social responsibility has gained significant traction. While some argue that companies should focus exclusively on financial gains, others contend that they have an obligation to contribute positively to society. In my opinion, a balanced approach that combines both profit-making and social responsibility is not only possible but essential for long-term business success.
Proponents of a profit-centric business model argue that the primary purpose of companies is to generate returns for shareholders. They contend that by maximizing profits, businesses can reinvest in research and development, create jobs, and ultimately drive economic growth. This perspective aligns with classical economic theory, which posits that the pursuit of self-interest leads to broader societal benefits. Furthermore, advocates of this view might argue that social welfare is the responsibility of governments and non-profit organizations, not businesses.
On the other hand, those who champion corporate social responsibility (CSR) assert that businesses have a moral obligation to consider their impact on society and the environment. They argue that companies benefit from public infrastructure, educated workforces, and natural resources, and therefore should give back to the communities in which they operate. Socially responsible practices can enhance a company’s reputation, attract conscientious consumers, and foster employee loyalty. Moreover, addressing social and environmental issues can create new market opportunities and drive innovation.
In my view, the most successful businesses are those that strike a balance between profitability and social responsibility. By integrating CSR into their core strategies, companies can create shared value, benefiting both shareholders and stakeholders. For instance, investing in renewable energy can reduce long-term costs while also addressing climate change. Similarly, providing fair wages and good working conditions can improve productivity and reduce turnover, ultimately contributing to higher profits.
In conclusion, while the profit motive remains crucial for business survival and growth, it need not come at the expense of social responsibility. As consumers become increasingly aware of corporate practices and their global impact, businesses that can effectively combine financial success with positive societal contributions are likely to thrive in the long run.
Balancing profit and social responsibility in business
Sample Essay 2 (Band 6-7)
The question of whether businesses should focus only on making profits or also contribute to society is a complex one. There are arguments for both sides, and I will discuss them before giving my own opinion.
Some people believe that the main goal of businesses should be to make money. They say that companies need to be profitable to survive and grow. If a business doesn’t make enough money, it will have to close down and people will lose their jobs. Also, when businesses make profits, they can invest in new products and services, which can benefit consumers. For example, tech companies that make a lot of money can spend more on research and development, leading to new inventions.
On the other hand, there are those who argue that businesses have a responsibility to society. They say that companies use public resources like roads and education systems, so they should give back to the community. Some ways businesses can do this are by donating to charities, reducing pollution, or providing fair wages to workers. Many people think that businesses that care about society will have a better reputation and more loyal customers.
In my opinion, I think businesses should try to do both – make profits and contribute to society. I believe it’s possible for companies to be successful financially while also being socially responsible. For instance, a company could use environmentally friendly practices that save money in the long run and also help protect the planet. By finding ways to do good for society that also benefit the business, companies can achieve both goals.
In conclusion, while making profits is important for businesses to survive, I believe they should also consider their impact on society. A balanced approach that considers both financial success and social responsibility is likely to be the most beneficial for everyone in the long term.
Sample Essay 3 (Band 5-6)
Nowadays, there is a big debate about whether businesses should only focus on making money or if they should also help society. Some people think businesses should just make profits, but others say they need to do more. I will talk about both sides and give my opinion.
First, some people say businesses should only care about profits. They think this is important because if a business doesn’t make money, it will close and people will lose jobs. Also, when businesses make money, they can make new things for people to buy. This can be good for everyone.
But other people think businesses should help society too. They say businesses use things like roads and schools that society provides, so they should give something back. Some ways they can do this are by giving money to charity or not polluting the environment. People who think this way say that businesses that help society will have more customers who like them.
I think businesses should try to do both things. They should make money but also try to help society. I believe this is possible if businesses are smart about how they do things. For example, a company could save money by using less electricity, which also helps the environment. This way, they can make money and do good things at the same time.
In conclusion, I think it’s important for businesses to make money, but they should also think about how they affect society. If they can do both, it will be good for everyone in the long run.
Explanation of Band Scores
Band 8-9 Essay:
This essay demonstrates excellent coherence, cohesion, and vocabulary usage. It presents a clear and well-developed argument, addressing both sides of the issue before offering a nuanced personal opinion. The use of sophisticated vocabulary (e.g., “globalized economy,” “corporate social responsibility”) and complex sentence structures elevates the writing. The essay also incorporates relevant examples and maintains a formal academic tone throughout.
Band 6-7 Essay:
This essay shows a good understanding of the task and addresses all parts of the question. The ideas are generally well-organized, but the development is less sophisticated than the Band 8-9 essay. The vocabulary is appropriate but less varied, and the sentence structures are less complex. While the essay presents a clear opinion, the arguments are less nuanced and the examples less specific than in the higher band essay.
Band 5-6 Essay:
This essay addresses the basic requirements of the task but lacks depth and sophistication. The ideas are presented in a simplistic manner with limited development. The vocabulary is repetitive and basic, and the sentence structures are simple. While the essay does present both sides of the argument and offers an opinion, the reasoning is less clear and the examples are vague. The overall coherence is weaker than in the higher band essays.
Key Vocabulary to Remember
Corporate Social Responsibility (CSR) (noun) – /ˈkɔːrpərət ˈsoʊʃəl rɪˌspɒnsəˈbɪləti/ – A business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders.
Stakeholder (noun) – /ˈsteɪkˌhoʊldər/ – A person, group or organization that has interest or concern in an organization.
Profitability (noun) – /ˌprɒfɪtəˈbɪləti/ – The state or condition of yielding a financial profit or gain.
Sustainability (noun) – /səˌsteɪnəˈbɪləti/ – The ability to maintain or support a process continuously over time.
Shareholder (noun) – /ˈʃeərˌhoʊldər/ – An owner of shares in a company.
Ethical business practices (noun phrase) – /ˈeθɪkəl ˈbɪznəs ˈpræktɪsɪz/ – Ways of conducting business operations that adhere to moral and professional principles.
Triple bottom line (noun phrase) – /ˈtrɪpəl ˈbɒtəm laɪn/ – A framework that recommends that companies commit to focusing on social and environmental concerns just as they do on profits.
Philanthropic (adjective) – /ˌfɪlənˈθrɒpɪk/ – Seeking to promote the welfare of others, especially by donating money to good causes.
Socially conscious (adjective) – /ˈsoʊʃəli ˈkɒnʃəs/ – Aware of and concerned about societal issues.
Sustainable development (noun phrase) – /səˈsteɪnəbəl dɪˈveləpmənt/ – Economic development that is conducted without depletion of natural resources.
Conclusion
The topic of business financial management tools, particularly in relation to balancing profit-making with social responsibility, is likely to remain relevant in future IELTS Writing Task 2 exams. As we’ve seen from the sample essays, this topic allows for a range of perspectives and can be approached at different levels of complexity.
To prepare for similar questions, consider practicing with variations such as:
- The role of businesses in addressing climate change
- The impact of corporate social responsibility on a company’s financial performance
- The balance between short-term profits and long-term sustainability in business strategies
Remember, the key to success in IELTS Writing Task 2 is not just about having good ideas, but also about expressing them clearly, coherently, and with appropriate vocabulary. Practice writing essays on these topics, focusing on developing your arguments logically and using a range of sophisticated language structures.
We encourage you to try writing your own essay on the topic discussed in this article. Share your essay in the comments section below for feedback and discussion with other learners. This active practice is an excellent way to improve your writing skills and prepare effectively for the IELTS exam.
IELTS Writing Task 2 practice session
As you continue your IELTS preparation, don’t forget to explore other crucial financial topics such as the role of central banks in financial crisis management and the impact of inflation on public debt. These interconnected subjects will not only enhance your understanding of global economic issues but also provide you with valuable content for your IELTS essays.