General Electric Under Jack Welch

Corporate Social Responsibility is an important term that few know of. This term stands for everything that’s moral, from using less harmful chemicals in their products to protecting the rights of the workers and the society we live in. However, some companies do not live by this word. This, coupled with the massive amount of consumers buying their products, can cause a multitude of problems not only for the company workers, but to the world itself. As such, companies should become more aware of their effects on the world around them and change their moral responsibilities to treat their workers more humanely, protect the lives of the people in their towns, cities and countries and save the environment from further destruction and pollution.

Another challenge for companies when considering social responsibility is the possible negative perception of shareholders. Historically, publicly-owned companies had a primary focus of maximizing shareholder value. Now, they must balance the financial expectations of company owners with the social and environmental

Because corporations are established to profit and shareholders invest money with expectations of a greater return, managers cannot be given a directive to be “socially responsible” without providing specific criteria of checks and balances to which needs to adhere. Therefore, it is imperative to the success of a corporation for managers to not act solely but rather to act within the policies of the shareholders.

Over the years, firms have increasingly been maximising shareholder value. However, Steve Denning, a former director of the World Bank, author of six leadership and management books and columnist for Forbes, disagrees. His article “The Origin of the ‘World’s Dumbest Idea’: Milton Friedman”, was published on June 26, 2013 on Forbes, debates against Friedman’s argument that the social responsibility of corporations is to make money for its shareholders. The main issue here is whether the maximisation of shareholder value as the guiding principle of executives is detrimental to the corporation. Although Denning has exhibited valid points in his argument, his lack of citation, biased view on most arguments and his tone has dampened the credibility

Did GE in the Welch era fulfill its social responsibility duty? Could it have done better? What should it have done?

At one time, Sears prided itself as “Where America Shops” by staying in touch with consumers and upholding high product, employer, and customer standards. Today, Sears is struggling to remain a prominent American retailer. The company’s present business model reflects a poor grasp of corporate social responsibility (CSR). Riddled with lawsuits, workplace issues, and a poor reputation with the US Equal Employment Opportunity Commission, the Sears consumers know today is undesirable.

We will look at the Enron Corporation and discuss its application of Corporate Social Responsibility (CSR) or in actuality its irresponsible behavior as related to social responsibility. We will revisit what CSR is and discuss Enron’s philosophy regarding its use and function within the corporation. We will discuss the consequences of Enron’s irresponsible behavior and the far reaching effects it had on society.

Social responsibility is a construct of appropriate ethical behaviors, where two or more individuals, and corporations strive to provide better outcomes for the benefit of society as a whole. With such a set of meticulous structured frameworks in mind, it is fundamental to achieve a harmonious balance between the ecosystem and the developing economy. However, social responsibility is not always first and foremost on the mind of big name corporate companies – such as General Mills Inc.

In her book “The Shareholder Value Myth,” Stout challenges the ideas of shareholder primacy splitting the argument into two broad parts. Part I traces the origins of shareholder-primacy thinking. It states that shareholder primacy

I attended the January 29th event Environmental Advocacy; We are all in this together. Guest speaker Gabe Wing director of environmental health at Herman Miller Inc. held a presentation about corporate social responsibility (CSP) with examples from companies like his. He focused on sustainability by explaining why it is good for business. He also mentioned global warming and described how, unaddressed, its consequences will keep Herman Miller’s furniture and other products far from consumer priorities. Then, Mr. Wing harkened back to the presentation’s subtitle We are all in this together by recognizing achievements like Dell’s Ocean Plastics Initiative. He was very clear about the importance of spreading a message of shared duties.

1. Corporate social responsibility is defined in Chapter 5 as the corporate duty to create wealth by using means that avoid harm to, protect, or enhance societal assets. Did GE in the Welch era fulfill this duty? Could it have done better? What should it have done?

Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue

It seems like business morals and ethics are being whisked to the side in lieu of the ever growing demand of higher stock prices, rising budget goals and investor profits. Despite the increased regulation of corporations through legislation, such as, Sarbanes-Oxley, some corporations still find themselves struggling to maintain ethics and codes of conduct within the workplace. In reviewing the failings of the Enron Scandal, one can heed the mistakes that both individual and organization malaise, such as, conflicts of interest, lack of true transparency and the sever lack of moral courage from the government, executive board, senior management and others, contributed to the energy giant’s downfall.

In the reign of Jack Welch during his 20-year at GE, a new leadership style was introduced and spread companywide. Welch developed a ranking system that put employees in one of the three categories. The top 20 percent were “stars”, the middle 70 percent were the crucial majority and the bottom 10 percent were weeded out. Through his policy of differentiation, Welch was able to separate those who

“Corporate finance theory, teaching and the typically recommended practice at least in the US are all built on the premise that the primary goal of a corporation should be the maximization of shareholder value.”