GMAT - Analytical Writing Assessment (AWA) Practice 1

Analysis of Argument

"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.

The ultimate goal of a corporation for decades is nothing but to maximize profits. Since the industrial revolution, a business have been believed as a function of man, machine, money, methods and information, which aims profitability in economical sense. In pursuing higher return, a company has to empower limited sources, effectively and efficiently. As the consequent, the company often deals with cheap but harmful material, employs child-worker or consumes illegal-logs. It lead to the fact that sometimes the corporate vision to maximize profit creates conflict with community welfare.

Indonesia is recognized as the biggest producer of crude palm oil (CPO) in the world. Total area of palm land almost reaches 1,000,000 Ha. Some big CPO plantations have planned to extend the palm land area to the total of 2,000,000 Ha. By this number of total area, the total export of CPO will be increase by four times. This green treasure have made Indonesia's GDP increased from time to time. And the companies become wealthier and gain more yield.

But, what happen to the sustainability of the land-left, or the community belong to the land. There is still no proof whether the palm land extension give those rural people advantages. The effects should be recognized from Human Development Index (HDI). The Indonesian Statistics Agency data shows that regional HDI in some palm land area still low.

By the fact mentioned above, it is clearly believed that the desire of corporations to maximize profits creates conflict with the general welfare of the nation at large.