Ch 4 - Ethics and Social Responsibility.pptx

Social responsibility businesss obligation to take

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Social Responsibility, business’s obligation to take actions, make decisions that benefits the society. Shareholder model Organization’s overriding goal should be profit maximization for the benefit of shareholders, View is that it is socially irresponsible for companies to divert time, money, and attention from maximizing profits to social causes and charitable organizations Stakeholder model Management’s most important responsibility is long-term survival Achieved by satisfying the interests of multiple corporate stakeholders Primary, groups that organization for long term versus secondary stakeholders, not as important as primary.
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Types of Social Responsibility Economic responsibility, we make a profit by producing something Legal responsibility, Ethical responsibility, accept ethical responsibility while selling Discretionary responsibilities, society expects the company to do recycling. Chosing to do that because society expects.
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Responses to Social Responsibility Demands Reactive strategy Defensive strategy, apple with Foxconn, Accommodative strategy, accept and do all that you can to improve. Proactive strategy, anticipate things before they occur.
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Social Responsibility and Economic Performance, doing what society expects. No consensus as to the trade-off between being socially responsible and economic performance Socially responsible companies experience the same ups and downs in economic performance that traditional businesses do.
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  • Spring '11
  • Le
  • Ethics

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