Drucker concluded that considerations for workers in and out of the workplace were the responsibilit

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Drucker concluded that considerations for workers in and out of the workplace were theresponsibility of the corporate leader just as much as the profits, survival, and growth of thebusiness or organization. Therefore, he taught that there were social responsibilities of business.As a result, Drucker was also called a pioneer of business social responsibility. Yet there wereimportant Drucker differences between what many expect corporations to do under this banner.The Drucker DifferencePeter Drucker differed with most of those who thought and wrote about the social responsibilityof organizations. Here are five of his corollaries to corporate social responsibility.1.Government cannot solve many social problems2.The corporate mission comes first3.There is an unlimited liability clause4.There are unique ethics of social responsibility5.There are opportunities for competitive advantage in fulfilling social responsibilityGovernment Can’t Do ItDrucker analyzed the issue and found increasing disenchantment with government’s ability tosuccessfully initiate or successfully implement social programs. Although governmentcoordinates 4-H Club activities in the U.S. today, it was a businessman, Julius Rosenwald atSears Roebuck, who initiated and developed this concept. Drucker noted: "There is now nodeveloped country — whether free enterprise or communist — in which people still expectgovernment programs to succeed." He gave a number of reasons for an increasing failure ofgovernment to assume responsibilities for social problems and to be successful in achievingworthwhile results. However, the overriding reason for Drucker’s belief was that government, bynecessity, served too many constituencies. This made it extremely difficult, if not impossible, toset specific goals and objectives, since powerful constituencies had different goals, and differentvalues. Frequently their goals and objectives were mutually exclusive and without agreed goalsand objectives, any social program was hopeless from the start.)Social responsibility means that an entity has an obligation to act for benefiting society at large.Social responsibility is a duty that every individual or organization has to perform so that abalance is maintained between financial goals and the environment. This means that companiesshould embrace its social responsibilities and not be solely focused on maximizing profits. Forexample, firms not only increase their operations but also make contributions to the communitywhere its operations are located. Another example is that when a company grows it takes care ofthe environment so that the actions of the firm do not harm the environment (1). In practicesocial responsibility means businesses using ethical decision making, taking actions to prevent

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Term
Spring
Professor
N/A
Tags
Business

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