chapter 5 - 1. Define and discuss the four-stage model of...

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1. Define and discuss the four-stage model of the progression of an organization's social responsibility. Answer: Stage 1: manager is following the classical view of social responsibility and obeys all laws and regulations while caring for stockholders' interests. Stage 2: managers expand their responsibilities to include employees as stakeholders. Stage 3: managers expand their responsibilities to other stakeholders in the specific environment, primarily customers and suppliers. Stage 4: manager characterizes the highest socioeconomic commitment and feels a sense of responsibility to society as a whole. 2. Outline four arguments for and two arguments against social responsibility. Answer: For: Public opinion now supports businesses pursuing economic and social goals. Socially responsible companies tend to have more secure long-run profits. Businesses should be socially responsible because responsible actions are the right thing to do. Businesses can create a favorable public image by pursuing social goals.
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This note was uploaded on 02/14/2012 for the course FINANCE & 101 taught by Professor Mrhoang during the Spring '11 term at Shanghai Normal University.

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