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Ringemployeeneedscompanies begantooffera

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Unformatted text preview: attractive benefit plans (ended up paying 20­40% of salary in benefits) To reduce the soaring benefit costs and still meet differing employee needs, companies began to offer a cafeteria­style plan, a benefit plan in which employees receive a set number of “benefit dollars” that they can use to purchase benefits that fit their particular needs Rewards & Motivation Employees are often rewarded for doing one thing and yet expected to do another Reward systems can encourage churning (buy and sell shares in order to generate commissions even though the investment objectors did not justify such frequent transactions), but churning ultimately hurts firm revenue and broker commissions because customers defect Social Responsibility Postures Efficiency Perspective: the concept that a manager’s responsibility is to maximize profits for the owners of the business Social Responsibility Perspective: it is socially irresponsible to maximize only shareholder wealth because shareholders are not the only one’s responsible for the firm’s existence Strategic Corporate Responsibility Perspective: a three criteria model that can help managers focus on social areas where there is the highest possibility of creating shared value for the for the business and society Inside­out approach: managers can look inside the company at issues that are more rather than less important as a function of the companies strategy and business activities Outside­in approach: managers can look outside the company at issues the company can influence Outside­out approach: managers look at social issues in generic terms of the extent to which they are...
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